Where to save tax money?

hels123_2

My DH has recently gone self employed. We are putting money away for the tax bill each month. He is due to pay his first bill in 2010.
We put approx £500 per month away. Which account can any one recommend opening?

[Deleted User]

A regular savings account may be suitable:

http://www.moneysavingexpert.com/sav...vings-accounts
and http://forums.moneysavingexpert.com/....html?t=608697

If committing to paying a set figure for 12 months isn't appropriate then I'd suggest getting a decent instant access savings account:

http://www.moneysavingexpert.com/sav...st#topaccounts
and http://www.thisismoney.co.uk/saving-...&in_page_id=50

hels123_2

We dont mind committing to a mpnthly payment, we had looked at the Halifax one, do you have to pay any tax on the savings??

mr_rush

offset your mortgage?

tiptoe_mouse

By the way, not all regular savings accounts require you to commit a set sum each month. The Halifax 10% one, for example, allows you to change your standing order whenever you like - min £25 max £500.

tiptoe

[Deleted User]

tiptoe_mouse wrote: »

By the way, not all regular savings accounts require you to commit a set sum each month. The Halifax 10% one, for example, allows you to change your standing order whenever you like - min £25 max £500.

tiptoe

Thanks for that.

hels123 wrote: »

We dont mind committing to a mpnthly payment, we had looked at the Halifax one, do you have to pay any tax on the savings??

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnSavingsAndInvestments/DG_10026699

Banks and building societies usually take tax off interest at the rate of 20 per cent before they pay it to you. But if your taxable income is less than your tax allowances you can register to have your interest paid 'gross' (without tax taken off).

SiuLoong

tiptoe_mouse wrote: »

By the way, not all regular savings accounts require you to commit a set sum each month. The Halifax 10% one, for example, allows you to change your standing order whenever you like - min £25 max £500.

tiptoe

When I asked in branch on opening I was informed you could only change the SO value once during the 12 months, I didn't check this with official T&C as I have no intention of changing but I'd make certain before I did!