Tax on savings

Matilda1975

Hi all. I'm posting for a mate who doesnt do the internet (I wish I had this problem)
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

ColdIron

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?

[Deleted User]

Hi,

maybe THIS will help explain.

jimjames

Matilda1975 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.

Matilda1975

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?

RobM99

Matilda1975 said:

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?

There's no real answer. Some think so or they wouldn't exist!

ColdIron

Matilda1975 said:

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?

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?

https://www.moneysavingexpert.com/savings/premium-bonds/

Matilda1975

jimjames said:

Matilda1975 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. 

Albermarle

Matilda1975 said:

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?

Is NS&I really worth investing with? — MoneySavingExpert Forum