I've got £100,000 cash savings in my current account | Is Skipton Base-rate Savings the 1# choice?

VXman

eskbanker said:

Anonymous868 said:
I personally don't do self-assessment... ect  

The stance that I've always taken is quite simply:

''The tax-man leaves me alone | So I'll leave the tax-man alone''.

I do get that some people may have ''moral views'' on this...
But for me personally, this is just the pathway I've always taken.

Some people may also have the view that it's absolute 100% weapons-grade bovine excrement!

Just in case you were seriously under the impression that there's any correlation between being liable to pay tax and self-assessing, if you earn enough savings interest to generate a tax liability then HMRC will simply adjust your PAYE tax code to recover that - no self-assessment (or any discussion/action) needed!

The only problem there is that the following year when he has spent his 100K on a house HMRC will continue his tax code at the same level so he will over pay in tax. I have found them difficult to contact and slow to correct incorrect tax codes.

eskbanker

VXman said:

eskbanker said:

Anonymous868 said:
I personally don't do self-assessment... ect  

The stance that I've always taken is quite simply:

''The tax-man leaves me alone | So I'll leave the tax-man alone''.

I do get that some people may have ''moral views'' on this...
But for me personally, this is just the pathway I've always taken.

Some people may also have the view that it's absolute 100% weapons-grade bovine excrement!

Just in case you were seriously under the impression that there's any correlation between being liable to pay tax and self-assessing, if you earn enough savings interest to generate a tax liability then HMRC will simply adjust your PAYE tax code to recover that - no self-assessment (or any discussion/action) needed!

The only problem there is that the following year when he has spent his 100K on a house HMRC will continue his tax code at the same level so he will over pay in tax. I have found them difficult to contact and slow to correct incorrect tax codes.

Sure, nobody was suggesting that this system is perfect, but the point is that it's not optional, or aligned to self-assessment, so OP's 'stance' is meaningless posturing if it signifies any desire or intent to avoid declaring (savings) income, which is how I interpreted it....

dealyboy

Just caught up on this thread ...

... well the OP is now considering where to put the 100k to best advantage ... the only thing is it may have been 100k a 'few years' ago  but is now probably more like the equivalent of 80k or less.

InA

AmityNeon said:

boingy said:

AmityNeon said:

boingy said:

They just want to put it into a savings account at the same bank that has the current account.

There's a big difference between that versus keeping £100K in a current account because one likes to see the balance at the ATM.

It's just two aspects of "got enough money".

Your example was specific to being less interested in one's account balance due to having enough money and disliking dealing with money matters, which is perfectly understandable, but in direct contrast to the experience described here, where gratification is derived specifically from seeing a high balance at the cash point. The scenarios may share degrees of indifference and/or aversion towards managing personal finance resulting in similar inertia, though their underlying motivations and complacency are diametrically opposed.

I can certainly appreciate the perspective of enjoying regularly seeing a large cash balance of savings whilst income from full time work covers everyday expenses, but notwithstanding being a rate tart, I'm far too risk averse to leave such a large sum in an account that's directly accessible with a debit card at a cash point (especially if I were saving for a mortgage deposit.)

I was thinking the same. The risk of fraud, or even muggers (standing behind you at the cashpoint), with all your money in one account instead of spreading the risk.

xylophone

if you earn enough savings interest to generate a tax liability then HMRC will simply adjust your PAYE tax code to recover that - no self-assessment (or any discussion/action) needed!

Not quite.

https://www.gov.uk/apply-tax-free-interest-on-savings

You need to register for Self Assessment if your income from savings and investments is over £10,000. Check if you need to send a tax return if you’re not sure.

eskbanker

xylophone said:

if you earn enough savings interest to generate a tax liability then HMRC will simply adjust your PAYE tax code to recover that - no self-assessment (or any discussion/action) needed!

Not quite.

https://www.gov.uk/apply-tax-free-interest-on-savings

You need to register for Self Assessment if your income from savings and investments is over £10,000. Check if you need to send a tax return if you’re not sure.

Agreed, although my comment was addressed to OP, in the context of their £100K pot, rather than a generalisation.

caper7

If Barclays still had branches and everything wasn't done online, I feel they would have brought this to his attention. 
Whenever I tried to pay in a large cheque back in the day, I was always advised to put it in my barclays savings account for safety. 
I'm not sure why it's safer, maybe due to no card/direct debits/standing orders etc..
Obviously a small amount of interest rather than none was also a plus point, but safety was always mentioned. 
I never keep large amounts in current accounts.
If someone is starting out and perhaps doesn't have parents who know about such things, I think many more people won't get the basic advice/guidance they need with the loss of face to face interactions.

Anonymous868

xylophone said:

if you earn enough savings interest to generate a tax liability then HMRC will simply adjust your PAYE tax code to recover that - no self-assessment (or any discussion/action) needed!

Not quite.

https://www.gov.uk/apply-tax-free-interest-on-savings

You need to register for Self Assessment if your income from savings and investments is over £10,000. Check if you need to send a tax return if you’re not sure.

Thanks - But tbh I'll just stick with keeping myself off the Self-Assessment Database... ect 

Swipe

Anonymous868 said:

xylophone said:

if you earn enough savings interest to generate a tax liability then HMRC will simply adjust your PAYE tax code to recover that - no self-assessment (or any discussion/action) needed!

Not quite.

https://www.gov.uk/apply-tax-free-interest-on-savings

You need to register for Self Assessment if your income from savings and investments is over £10,000. Check if you need to send a tax return if you’re not sure.

Thanks - But tbh I'll just stick with keeping myself off the Self-Assessment Database... ect 

I used to think like you until I was forced to register for self assessment. Now I wouldn't have it any other way. I now know what I'm paying is correct and when it has to be paid by, and it's a doddle to pay by debit card.

ColdIron

Thanks - But tbh I'll just stick with keeping myself off the Self-Assessment Database... ect 

I agree with @Swipe, I dread the possibility of not being able to do it at some point in the future and having to trust (and check) HMRC's workings, not to mention having my tax code changed 2 years after the event

If you keep good records it's a quick and easy process, perhaps less than an hour each year and then you done and dusted