Best way to avoid paying tax on savings

pookey

I got so focused on getting the best accounts that i lost track of the interest. I'm going to go over my 1k PSA. Here are the ways i can think of to try to reduce it as much as possible:
* I'm waiting until the end of this month for my monthly saver to mature to max out my ISA.
*Open more monthly savers that will take interest into the next tax year. The only risk with that is that I might be in the same situation next year if the rates are similar.
*open a 2 or 3 year bond and get the interest at the end of the term, also a risk as not sure how things go. 

Has anyone got any other suggestions please? 

I know 80% of something is better then 100% of nothing but I'm trying to maximise as best i can 😊

Reed_Richards

There is a tax-free allowance on dividends of £1000 in the 23/24 tax year.  

Zoe02

ISA savings and investments. 

Secret2ndAccount

Reed_Richards said:

There is a tax-free allowance on dividends of £1000 in the 23/24 tax year.  

But remember, if you buy something (almost) risk free, like a bond, or money market fund, the returns class as INTEREST, not dividends. You have to invest in something that is primarily equities, or far from cash in order for your dividends to count as dividends.

ColdIron

Do you have a partner you can gift some money to? Potentially you have access to their allowances

Richard1212

You are fortunate enough to be able to be in the position of having to pay tax on savings.

I use up the max amount I'm allowed in the UK, I also have savings in countries that have more favourable tax regimes, and multi-currency accounts. But, at the end of the day, most of us have to pay tax on our savings just as we have to pay income tax.

rallycurve

Richard1212 said:

You are fortunate enough to be able to be in the position of having to pay tax on savings.

I use up the max amount I'm allowed in the UK, I also have savings in countries that have more favourable tax regimes, and multi-currency accounts. But, at the end of the day, most of us have to pay tax on our savings just as we have to pay income tax.

Surely if you are a UK resident you'll have to pay tax here for the interest of your savings in those countries, so the more favourable tax regime wouldn't apply to you?

Richard1212

rallycurve said:

Richard1212 said:

You are fortunate enough to be able to be in the position of having to pay tax on savings.

I use up the max amount I'm allowed in the UK, I also have savings in countries that have more favourable tax regimes, and multi-currency accounts. But, at the end of the day, most of us have to pay tax on our savings just as we have to pay income tax.

Surely if you are a UK resident you'll have to pay tax here for the interest of your savings in those countries, so the more favourable tax regime wouldn't apply to you?

You don't seem to have heard of tax havens------and they are not illegal !

subjecttocontract

No they are not but you still need to declare overseas income to HMRC.
Didn't Bernie Ecclestone just get fined for failing to declare £400 million in a Singapore trust ?

Rheumatoid

subjecttocontract said:

No they are not but you still need to declare overseas income to HMRC.

Yes, but you don't usually pay the tax again if there is a double taxation agreement. I think the declaration here is mainly so they can see if you belong in a higher tax band.

Rheumatoid

? Premium bonds although you may be better off just paying the tax on the interest unless you are a high rate tax payer.