Tax on savings

Hi all. I'm posting for a mate who doesnt do the internet (I wish I had this problem) :D
If you have savings which are enough for you to be paying tax on them, how do you avoid that? I think she can only put £20K into an ISA cash or stocks and shares which she's done so what do you do after that? She is maxed out on her pension. Thank you :)

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  • ColdIronColdIron Forumite
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    What do you mean by maxed out on her pension? Do you mean the 5% standard contribution or the limit of her annual earnings?
    Premium bonds?
  • frugalmacdugalfrugalmacdugal Forumite
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    Hi,
    maybe THIS will help explain.
    Y'all take care now.
    happy0207.gif

  • jimjamesjimjames Forumite
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    I think she can only put £20K into an ISA cash or stocks and shares which she's done so what do you do after that? She is maxed out on her pension. Thank you :)
    Not quite true. You can put £20k in PER YEAR so as of April another £20k can be added. If she has a partner then they can do the same so in total £80k kept tax free over 2 years.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Matilda1975Matilda1975 Forumite
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    ColdIron said:
    What do you mean by maxed out on her pension? Do you mean the 5% standard contribution or the limit of her annual earnings?
    Premium bonds?
    Limit of her annual earnings. Are Premium Bonds tax free? Are they worth the bother? :smile:
  • RobM99RobM99 Forumite
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    ColdIron said:
    What do you mean by maxed out on her pension? Do you mean the 5% standard contribution or the limit of her annual earnings?
    Premium bonds?
    Limit of her annual earnings. Are Premium Bonds tax free? Are they worth the bother? :smile:
    There's no real answer. Some think so or they wouldn't exist!
    Now a gainfully employed bassist.
  • edited 4 January at 7:14PM
    ColdIronColdIron Forumite
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    edited 4 January at 7:14PM
    ColdIron said:
    What do you mean by maxed out on her pension? Do you mean the 5% standard contribution or the limit of her annual earnings?
    Premium bonds?
    Limit of her annual earnings. Are Premium Bonds tax free? Are they worth the bother? :smile:
    They are tax free, do you (she) feel lucky?
    I wouldn't put small amounts of cash with them due to the lumpy nature of the prize draw winnings, Have a read of the MSE guide

    Premium Bonds

    Are they worth it?

  • Matilda1975Matilda1975 Forumite
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    jimjames said:
    I think she can only put £20K into an ISA cash or stocks and shares which she's done so what do you do after that? She is maxed out on her pension. Thank you :)
    Not quite true. You can put £20k in PER YEAR so as of April another £20k can be added. If she has a partner then they can do the same so in total £80k kept tax free over 2 years.
    Ok. Thank you. I dont think she knows that (I didnt!) So that might help a bit. 
  • AlbermarleAlbermarle Forumite
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    ColdIron said:
    What do you mean by maxed out on her pension? Do you mean the 5% standard contribution or the limit of her annual earnings?
    Premium bonds?
    Limit of her annual earnings. Are Premium Bonds tax free? Are they worth the bother? :smile:
    Is NS&I really worth investing with? — MoneySavingExpert Forum
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