Have I got this savings lark wrong in terms of tax benefits?
in Savings & investments
11 replies 1K views
I will try to keep this as succinct and brief as I can... But I would appreciate a check to see if by not utilizing our ISA allowance we could be heading for a tax bill!
We retired in our fifties and took a good NHS pension. Had a financial advisor but any gains we were making were swallowed up in fees so savings never increased. So we went out alone with our financial management.
Our joint income after tax from pension equates to around £3,200 plus I can earn perhaps £2,500 per annum from Adhoc work taxed at PAYE.
The savings situation now is as follows :
Around £68,000 in savings account with at 2.50% no access restrictions
Around £30.000 in a fixed for 1-year savings account at 2.75%
Around £100,000 in a fixed savings account at 3.50%
Around £35,000 in Vanguard Lifestratergy (ISA I think)
Around £15,000 in standard bank account.
If I have worked this out correctly and understood the savings allowance. The accounts above will earn more than £2,000 per year. Do I need to move some of the above into a cash ISA before April to benefit from the tax saving and then move more again after April 2023 to fully benefit from the tax free allowance?
Advice as ever appreciated.
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