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The Goverments New savings account.

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Comments

  • stehouk
    stehouk Posts: 413 Forumite
    Sixth Anniversary 100 Posts
    edited 10 October 2018 at 7:21PM
    I set one up after i had been on the pension forum through HL, i pay £250 per month into it and they claim £60 per month from the taxman for me and add it to my account, there are no charges whatsoever, i hold it in cash, i receive emails from HL promoting their services and showing me how to invest but i wouldn't know where to start so i just leave it there and just use it as a savings account.as there is only about £2000 in it.
  • JudiB
    JudiB Posts: 10 Forumite
    Sixth Anniversary First Post
    As a non tax-payer if I did open a SIP I wouldn’t be eligible for a government contribution so it would just be a savings account - is that correct?
  • ColdIron
    ColdIron Posts: 10,325 Forumite
    Part of the Furniture 10,000 Posts Hung up my suit! Name Dropper
    No, as I said
    ColdIron wrote: »
    Even non earners can make pension contributions and receive tax relief if you are under 75
    You are not required to pay income tax in the current year to receive tax relief, see:
    • Tax relief if you’re a non-taxpayer
    • If you’re not earning enough to pay Income Tax, you’ll still qualify to have tax relief added to your contributions up to a certain amount. The maximum you can pay is £2,880 a year. Tax relief is added to your contribution so if you pay £2,880, a total of £3,600 a year will be paid into your pension scheme, even if you earn less than this.
    https://www.moneyadviceservice.org.uk/en/articles/tax-relief-on-pension-contributions
  • stehouk
    stehouk Posts: 413 Forumite
    Sixth Anniversary 100 Posts
    It would be worth a visit to the pension forum and have a read of the topics on there, i am not an expert but even if you don't pay tax you can still claim the £720 per year if you contribute £2880 into a Sipp,
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