Advice for using a General Investment Account for 120k

isayhello

@ColdIron Thanks, the only other alternative I was thinking might be vanguard, where the investments are limited but the trades are free if you wait till the next day, so potentially could save that way.

What does the consolidated tax certificate do or how does it help? Sorry have never used one.

ColdIron

Vanguard will give you free trades but will charge you an annual fee, £180 pa on £120K, so a cost rather than a saving. And of course you are restricted to Vanguard products. Even without the fee I wouldn't let the transaction charge tail wag the investment dog

The Consolidate Tax Certificate details the various types of income received during the previous financial year. Typically dividends but also interest, PIDs etc if they apply to you. It also breaks these down across UK and overseas, again if they apply to you. You need these if you do a self assessment or otherwise need to report taxable income to HMRC. No need for this with an ISA or SIPP but it's a necessary consequence of using a taxable GIA

isayhello

ColdIron said:

Vanguard will give you free trades but will charge you an annual fee, £180 pa on £120K, so a cost rather than a saving. And of course you are restricted to Vanguard products. Even without the fee I wouldn't let the transaction charge tail wag the investment dog

The Consolidate Tax Certificate details the various types of income received during the previous financial year. Typically dividends but also interest, PIDs etc if they apply to you. It also breaks these down across UK and overseas, again if they apply to you. You need these if you do a self assessment or otherwise need to report taxable income to HMRC. No need for this with an ISA or SIPP but it's a necessary consequence of using a taxable GIA

Ah great point, I forgot about the fee, I guess the other alternative GIA wise then would be something like freetrade which could work out cheaper but I've heard mixed things.

Good to know about the tax certificate then, I guess as long as div's are under 2k allowance though then there shouldn't be any issues. If I went over this amount is SA the only way to report it or you can just tell HMRC directly somehow?

AlanP_2

Remember though the £2k allowance is only 1.67% of £120K so you are likely to end up paying some income tax. No idea how you tell HMRC as it's never been a problem I've had.

ColdIron

isayhello said:

ColdIron said:

Vanguard will give you free trades but will charge you an annual fee, £180 pa on £120K, so a cost rather than a saving. And of course you are restricted to Vanguard products. Even without the fee I wouldn't let the transaction charge tail wag the investment dog

The Consolidate Tax Certificate details the various types of income received during the previous financial year. Typically dividends but also interest, PIDs etc if they apply to you. It also breaks these down across UK and overseas, again if they apply to you. You need these if you do a self assessment or otherwise need to report taxable income to HMRC. No need for this with an ISA or SIPP but it's a necessary consequence of using a taxable GIA

If I went over this amount is SA the only way to report it or you can just tell HMRC directly somehow?

I think you can just inform them but I'm not certain as I do a SA anyway, they're not hard. Perhaps someone else could confirm