Advice needed as I'm reaching my £1000 PSA level

Frogletina

I have looked at my projected savings interest for the year 2023/24 and I am going to exceed my PSA by about £300.

Where I have been able to, I have changed other savings accounts to give interest in the next financial year, and closed or reduced to the minimum all those regular savers giving 5% or under, but I'm looking for advice as to whether the following changes are a good idea.

I have about £2500 in the Nat West regular saver earning 6.17%
                     £800   in the RBS regular saver earning 6.17%
plus              £4300 in the Coventry BS home saver issue 1 earning 5.60%, first year of 3 year account.

All taxable this year.

I have reduced the home saver to £10 as I am near to the protected savings limit, but up till now have been putting in the full £150 to Nat West and RBS.

I'm thinking that it may be a good idea to withdraw most of the money in these 3 accounts, so that I can put it in the Santander easy access, which won't be taxable until next year.

Can anyone advise if this would be a good idea.

I have maxed my ISA for this year. The way things are looking at the moment I will also exceed my PSA in the next year too.

ColdIron

Frogletina said:

The way things are looking at the moment I will also exceed my PSA in the next year too.

So is there much point in moving the tax burden into next year? Will your allowances be greater then?

Move too much and you may not take maximum advantage of this years PSA

VNX

Can you pop a bit into a 2 or 3 year fix to move sone of the interest into a different tax year?

Frogletina

ColdIron said:

Frogletina said:

The way things are looking at the moment I will also exceed my PSA in the next think I will year too.

So is there much point in moving the tax burden into next year? Will your allowances be greater then?

Move too much and you may not take maximum advantage of this years PSA

I will still exceed this year's PSA because there is nowhere else I can cut down.  

No, my allowance will still be £1000 next year, so I need to be creative there too. After a couple of years though most money will be in ISAs

Frogletina

VNX said:

Can you pop a bit into a 2 or 3 year fix to move some of the interest into a different tax year?

That's something to look into

subjecttocontract

I'm a great believer in not letting the tax tail wag the dog.
If you don't like paying tax on your savings, you have 5 options.
* ISAs 
* Premium Bonds.
* Spend it.
* Move it.
* Live with it.

Moving it won't necessarily save tax.....there is a risk that
* You'll get caught next year.
* You will move it and lose interest.
* You move it and can't get the money out of a fix when you want it.

If you find a solution that avoids all that please let the rest of us know.

jimjames

Frogletina said:

I have looked at my projected savings interest for the year 2023/24 and I am going to exceed my PSA by about £300.

So about £60 tax? Is it really worth juggling so much just to reduce that. I know this is MSE but it's better to get a decent rate and pay tax than get a poor return tax free.

subjecttocontract

I'm hoping the Chancellor might just double the tax free PSA before the end of the tax year......there is an Autumn statement in November.

So there is a 6th option of: do nothing and hope the PSA is increased !

ColdIron

With many allowances frozen until 2028 (where they haven't been reduced) the chance of that is, I suggest, remote

Thumbs_Up

Spare a kindly thought towards me, I will smash through my £18,750 savings barrier next year. I don’t really want to but it looks like premium bonds for me to keep me on the neutral side of the tax man. Interesting to see how will the Labour party get me next year or so.

Eco_Miser

Thumbs_Up said:

Spare a kindly thought towards me, I will smash through my £18,750 savings barrier next year. I don’t really want to but it looks like premium bonds for me to keep me on the neutral side of the tax man. Interesting to see how will the Labour party get me next year or so.

Are you making full use of your ISA allowance?