tax on savings taxable after 1k is it automatic or self declaration??

[Mottie]

Cash eroded by inflation
But you want to max out in bonds with the possibility of no growth whatsoever

Utter nonsense.

 

[gas112]

View attachment 375821

he clearly has a really poor memory about what he has typed in the past

 

[Mottie]

he clearly has a really poor memory about what he has typed in the past

Don't question him too hard though otherwise the thread will suddenly become locked.

 

[Jurassicspark]

As I understand it, any bank etc that pays you interest will tell HMRC, so if it totals ove £1000 you'll get taxed on the excess.

Not if you are a higher tax payer which will mean you'll only have a PSA of 500.

If you're an additional payer the PSA becomes 0.

For dividends it doesn't matter what tax band you fall in, you'll have a allowance of £1000.

 

[Mottie]

For dividends it doesn't matter what tax band you fall in, you'll have a allowance of £1000.

I thought it was £500 allowance and only then if your dividends are outside your personal tax allowance? In other words, of someone got no salary and all dividends ant they received £15,000, £12570 would be exempt, then the next £500 would be exempt and then 8.75% on the remainder so £169 tax in total on £1,930 and no NI.

 

[motorbiking]

its now £500 cut by 50% from last year.

 

[JohnD]

he clearly has a really poor memory about what he has typed in the past

I have frequently said that holding savings in cash is a poor move because they will be eroded by inflation.

I have also said that if you are a person who has a need for cash holdings, it is a poor move to hold them in a vehicle where the interest will itself be eroded by taxation.

Perhaps you have the idea that I have said something different.

 

[Mottie]

it is a poor move to hold them in a vehicle where the interest will itself be eroded by taxation.

So, what’s the interest rate on those premium bonds you advised someone to "max out" on?

 

[gas112]

I have frequently said that holding savings in cash is a poor move because they will be eroded by inflation.

I have also said that if you are a person who has a need for cash holdings, it is a poor move to hold them in a vehicle where the interest will itself be eroded by taxation.

Perhaps you have the idea that I have said something different.

but you think putting them into a monthly lottery with no guarantee of any payout and no growth is a good investment

 

[JohnD]

no guarantee

You don't approve of investment, eh?

 

[gas112]

You don't approve of investment, eh?

what putting 50k on a lottery every month with next to no chance of winning what you would have made in interest

 

[JohnD]

what putting 50k on a lottery every month with next to no chance of winning what you would have made in interest

You don't have much grasp of Premium Bonds.

Never mind, if you have cash savings, you can have a guarantee, if that's what you want.

You are guaranteed to lose value due to inflation.

 

[gas112]

You don't have much grasp of Premium Bonds.

Never mind, if you have cash savings, you can have a guarantee, if that's what you want.

You are guaranteed to lose value due to inflation.

and you keep hoping you are going to win the big one

 

[JohnD]

and you keep hoping you are going to win the big one

Do you?

I don't.

A person with the max holding has a pretty good chance of getting about the average return, averaged over a year or more.

The chance of winning a million is so small it can be disregarded.

 

[gas112]

Do you?

I don't.

A person with the max holding has a pretty good chance of getting about the average return, averaged over a year or more.

The chance of winning a million is so small it can be disregarded.

A pretty good chance of getting ABOUT
Glad you finally agree not a guaranteed chance of getting anything .