Maxed Cash ISA, next option?

Catplan

Pension? £1000 a month becomes £1250 straight away and you can claim higher rate back as well.

The down side is you can’t access it until pension age, will depend on your age obviously but for me it’s pension before ISA these days.

Albermarle

MoneyMan01 said:

So, this has rolled around, and I now am at a crossroads. I have around £1,000 each month that I would like to put somewhere, without having to get taxed on the interest earned. ISA maxed, PB's maxed. I looked at Gilts, but that looks more suitable for lump sums.

What would be the best option for making monthly contributions? Guessing at this point it is more of the riskier investments.

Gold? Art? Crypto? Antiques?

Are there any other options I have that are more openly available to put my money?

Most on this forum when considering investments, will be thinking about diversified funds invested in the global financial markets. Depending on their constitution, these would normally be classed as higher/medium/lower risk.
Investments in crypto/Art or Antiques/individual company shares would be regarded as very high risk.
Gold is a bit more debatable.

With most investments outside an ISA or Pension, you could be potentially taxed, especially once the investment amount gets higher.

lr1277

Do you want income or gains? If income are you looking at income tax free income?
If gains/losses, you are looking at preferably a 5 year holding period before you cash them in.
I suppose one option is gold coins. I am not ab expert but I believe they are VAT and CGT free. No income tax as no income. Theoretically they are easily realisable. Not as easily realisable as cash in a bank account that pays no interest.
But you take the risk they decrease in value, even over the 5 year period mentioned above.
Also there are buying, storage and insurance questions/costs.
I suppose you could find a current account that pays no interest. At least your money upto £85k is protected.
Or bite the bullet and stop the tax tail wagging the money dog, and get an income earning account?

MoneyMan01

The reason I ask this specifically, is my logic being that I am already getting taxed 40%, anything I have left, I would like to work hard for my future. Having that get further taxed obviously diminishes the amount, which is why I am looking for where to put my money.

Yes, the tax tail is potentially wagging the money dog. For now, I have put it into a GIA until making a decision. Ultimately, it looks as though that is my option, thus having to pay tax on interest earned.

jimjames

MoneyMan01 said:

What would be the best option for making monthly contributions? Guessing at this point it is more of the riskier investments.

Gold? Art? Crypto? Antiques?

I would say that any of these are very widely open to being scams, you might not pay any tax but equally you might have lost all your money which doesn't seem like a reasonable exchange of risk. If you definitely want cash then putting into regular savers will defer the interest until next year and another tax year if that helps, you might then be able to put more into ISAs or pension at that time.

GrubbyGirl_2

Rather than taking risks why not simply get the best interest rates and pay the tax?  Regular savings accounts are paying up to 8% which is equivalent to 4.8% after you've paid the tax.  While they do have limits on how much you can pay in you can open more than one.  60% of something is far better than 100% of nothing

MoneyMan01

That is a good point, and something I will consider.

MoneyMan01

GrubbyGirl_2 said:

Rather than taking risks why not simply get the best interest rates and pay the tax?  Regular savings accounts are paying up to 8% which is equivalent to 4.8% after you've paid the tax.  While they do have limits on how much you can pay in you can open more than one.  60% of something is far better than 100% of nothing

If it’s not an investment, e.g. in a GIA, and just a regular savings account. How does the tax get calculated taken?

is all of that done automatically as it’s in a savings account. Or is that something that still requires reporting and onus on us? 

eskbanker

MoneyMan01 said:

GrubbyGirl_2 said:

Rather than taking risks why not simply get the best interest rates and pay the tax?  Regular savings accounts are paying up to 8% which is equivalent to 4.8% after you've paid the tax.  While they do have limits on how much you can pay in you can open more than one.  60% of something is far better than 100% of nothing

If it’s not an investment, e.g. in a GIA, and just a regular savings account. How does the tax get calculated taken?

is all of that done automatically as it’s in a savings account. Or is that something that still requires reporting and onus on us? 

If you don't already self-assess then you only need to start doing so if your taxable interest exceeds £10K annually.

The banks and building societies report interest to HMRC, who will issue statements of account late in each calendar year, clarifying if any tax needs to be collected, and if so, this can be handled via PAYE coding adjustments for the following tax year.

MoneyMan01

eskbanker said:

MoneyMan01 said:

GrubbyGirl_2 said:

Rather than taking risks why not simply get the best interest rates and pay the tax?  Regular savings accounts are paying up to 8% which is equivalent to 4.8% after you've paid the tax.  While they do have limits on how much you can pay in you can open more than one.  60% of something is far better than 100% of nothing

If it’s not an investment, e.g. in a GIA, and just a regular savings account. How does the tax get calculated taken?

is all of that done automatically as it’s in a savings account. Or is that something that still requires reporting and onus on us? 

If you don't already self-assess then you only need to start doing so if your taxable interest exceeds £10K annually.

The banks and building societies report interest to HMRC, who will issue statements of account late in each calendar year, clarifying if any tax needs to be collected, and if so, this can be handled via PAYE coding adjustments for the following tax year.

Thank you very much for the clear clarification.