The Top Fixed Interest Savings Discussion Area

TiVo_Lad

Gollygumdrops said:

Thanks for link Beddie.  If I get 10K in interest I need to register for self assessment.  
I assume, as I said above,  that this is just to keep me on file as I surely would not need to pay tax on say £10,500 interest if I can work for £12,570 and not pay any?  

Correct. One of the reasons for Self Assessment is to "keep an eye" on people who receive income from sources other than PAYE or Pensions. Completing a self-assessment doesn't mean you'll get taxed, it just means that HMRC want to know about your sources of "non-standard" income so they can assess whether you should pay tax or not. Self Assessment is becoming more and more common, but it isn't something to fear.

Gollygumdrops

Thanks TiVo_Lad.  To ensure I don’t reach £10K interests maybe I need to go on a spending splurge! 😄😆
Now, where are those cruising and jewellery brochures?

ranciduk

Gollygumdrops said:

Thanks TiVo_Lad.  To ensure I don’t reach £10K interests maybe I need to go on a spending splurge! 😄😆

Try doing your banking with Halifax and you’ll be fine

TheBanker

Gollygumdrops said:

Thanks TiVo_Lad.  To ensure I don’t reach £10K interests maybe I need to go on a spending splurge! 😄😆
Now, where are those cruising and jewellery brochures?

If you want to stay below £10k to avoid having to fill in a Self Assessment return (although it's an easy task if you've kept your paperwork organised), remember any interest earned from ISAs doesn't need to be declared. So rather than a cruise, you could stick £20k in an ISA if you don't already have one... although a cruise would be more fun!

Also, if you are taking out 12 month fixes now the interest will be paid in the next tax year (2024/5). You will be able to put another £20k in an ISA after 5 April 2024, further reducing your taxable interest. 

SonOfPearl

TheBanker said:

Gollygumdrops said:

Thanks TiVo_Lad.  To ensure I don’t reach £10K interests maybe I need to go on a spending splurge! 😄😆
Now, where are those cruising and jewellery brochures?

If you want to stay below £10k to avoid having to fill in a Self Assessment return (although it's an easy task if you've kept your paperwork organised), remember any interest earned from ISAs doesn't need to be declared. So rather than a cruise, you could stick £20k in an ISA if you don't already have one... although a cruise would be more fun!

Also, if you are taking out 12 month fixes now the interest will be paid in the next tax year (2024/5). You will be able to put another £20k in an ISA after 5 April 2024, further reducing your taxable interest. 

Is the highlighted really true? The Gov.uk guidance says nothing about excluding interest earned on ISAs from the £10k total. It simply says "You need to register for Self Assessment if your income from savings and investments is over £10,000." Genuine question. I am trying to figure out if I might need to complete a Self Assessment return in the future if rates keep going up. 

TiVo_Lad

SonOfPearl said:

TheBanker said:

Gollygumdrops said:

Thanks TiVo_Lad.  To ensure I don’t reach £10K interests maybe I need to go on a spending splurge! 😄😆
Now, where are those cruising and jewellery brochures?

If you want to stay below £10k to avoid having to fill in a Self Assessment return (although it's an easy task if you've kept your paperwork organised), remember any interest earned from ISAs doesn't need to be declared. So rather than a cruise, you could stick £20k in an ISA if you don't already have one... although a cruise would be more fun!

Also, if you are taking out 12 month fixes now the interest will be paid in the next tax year (2024/5). You will be able to put another £20k in an ISA after 5 April 2024, further reducing your taxable interest. 

Is the highlighted really true? The Gov.uk guidance says nothing about excluding interest earned on ISAs from the £10k total. It simply says "You need to register for Self Assessment if your income from savings and investments is over £10,000." Genuine question. I am trying to figure out if I might need to complete a Self Assessment return in the future if rates keep going up. 

See https://www.gov.uk/individual-savings-accounts/how-isas-work

It's in the top section "If you complete a tax return, you do not need to declare any ISA interest, income or capital gains on it."

SJMALBA

Still off the pace, but, Kent Reliance up:

1 Year - 4.75%
2 Year - 4.76%

https://www.kentreliance.co.uk/bonds

VNX

Some nice increases still

charter 4.9 two year
4.87 18month

oaknorth one year 4.86

United trust very nice rates all the way through to five year bonds

apart from Isbank via raisin I wonder who will be first to break the 5pc barrier and how far we will go above that 

SJMALBA

VNX said:

Some nice increases still

charter 4.9 two year
4.76 18month

oaknorth one year 4.86

United trust very nice rates all the way through to five year bonds

apart from Isbank via raisin I wonder who will be first to break the 5pc barrier and how far we will go above that 

Charter's 18 month is 4.87% AER (4.76% monthly).

SJMALBA

VNX said:

SNIP

apart from Isbank via raisin I wonder who will be first to break the 5pc barrier and how far we will go above that 

I wonder if Shawbrook will make a move on their 1 year, which is still @ 4.7% AER - they still top the ('normal') EA table, so perhaps they'll go for the best 1 year, too?  

(I know, wishful thinking! )