How to Avoid Paying Tax on Your Savings Interest

[@barrycrump6189]

Thank you. It is important to shelter your assets from wasteful and profligate governments. The present incumbents go on about the need to plug a £22 Billion financial black hole. And how do they go about addressing this? By giving away billions in foreign aid, giving money away to Africa for climate issues, and financing foreign wars. Enough is enough. I have zero qualms about tax avoidance (not evasion) - in fact, in light of what I have just said, I consider it a moral duty to do so until we get our own house in order - starting with our roads.

[@steve6375]

You can also use a S&S ISA as a savings account if you buy a money market ETF e.g. CSH2 inside the S&S ISA which currently gains/pays over 5%/yr with minimal risk. If you use a flexible ISA then you can put the money back in later too (max. 20K before April 6th 2025). That way you get a better rate than Cash ISA or a taxable savings account.

[@jeffocks793]

Very good ideas. I'm interested in the 'cash for 12 months worth of projects' pot. I've heard about the 3-6 months of salary for emergencies, but do you mean also 12 months of salary held as cash savings? Or some other % of income? This is for what, holidays, new carpet, home improvements..? 12 months salary would be a lot of cash to have around not in say the stock market.

[@stevegeek]

Nice summary. Another option could be putting any "spare" cash into a general trading account if you've exceeded the limit on tax-free wrappers (pension/ ISA / premium bonds). You could get up to £500 in dividends tax free or up to £3000 in capital gains on selling shares before paying tax (currently....let's see what Rachel Reeves does though!).

[@googleuser795]

It's a great con to be taxed on nominal savings interest, should be calculated on inflation adjusted interest earned. Imagine paying 40% tax, say 100k in the bank 2022, 5 % interest, 10% inflation after year your spending power reduced and your taxed... No tax should be due as no gain... Taxed on a loss is crazy

[@DavidsonDonald-t2w]

Understanding long term versus short term capital gains rates is important for growing your wealth.

[@Christopher-nx8hb]

Those who are 50 or older can add $7.5k to the basic workplace retirement plan to max out their retirement accounts and employee benefits.

[@andrey-thompson]

That's a good thing to help yourself, but it doesn't change the disproportional size of wealth distribution. Spread your money across different types of investments. A good financial advisor would do.

[@BlockchainFx]

Well said, I totally get that. Working with someone like ERIC PAUL ELMER could give you the confidence that your start up capital is working for you, even in uncertain times. He's been in the business for years and knows how to navigate these situations

[@BarbaraChavez-q2t]

Well, he looked at my entire financial picture and helped me diversify. Although I had retirement plans but I necessarily did not have to wait. We put some of the money into conservative investments to generate steady income, while also setting aside some for more growth-oriented opportunities. He also kept some liquid in case a good real estate deal came along.

[@LauraMelissa-c5j]

There's of course no specific time to make retirement/investment decisions. It's a good thing to have professional guidance and how do I get to ERIC PAUL ELMER?

[@bankboy]

my favourite accountant… can’t wait to become rich so i can officially access your services :)

[@namakudamono]

Thank you for your clear explanation. I work and pay tax overseas, however I also have a fixed rate bond (in a Jersey-based institution) which is maturing at the start of 2025, when it will pay the bond+profit into my UK-based HSBC account. How can I check if I’m required to pay tax on the bond profit in the UK? How do I calculate my PSA in this case?

[@mooremoneymakin]

Nice video. Another option I recently found out about is buying GILTs. The key is to buy them at a low price and low coupon. The coupon is taxed but the capital gain is tax free.

[@chriskelly2237]

Thank you, do you do one to one consulting please?

[@juan-bf7hm]

Thank you for the video, crystal clear. The only thing is that every single finance channel agree that it's so good to invest in the s&p500, should we not start to be worried when everyone agrees about how good a particular investment is?

[@EggchaserNZ]

The only issue I have is the pension itself. Whilst it may be tax free to contribute to your pension - your pension withdrawals will be taxed on its way out.

[@steve6375]

@@EggchaserNZ 25pc is tax free on way out, rest is subject to income tax at current rates

[@Mr.GeeKhan786]

@@steve6375I really hope Labour don’t come after that 25%

[@prash_t]

Not necessarily. Remember you have 12,570 personal allowance in retirement too. If you crystallise say 15k pension 25 percent is tax free and the rest falls within your personal allowance so tax free

[@Contentibus]

Amazing video. Thankyou for your advice ⭐️

[@01mememememe]

thanks

[@j.v7458]

I really want to hire you as my accountant! How can I contact you ?😅

[@ellerellerek52]

Question! If I have £40000 and I keep £20000 in ISA account that pays me £800 interest after a year and I keep the other £20000 in none ISA account that also paid me £800 of interest for that year. Given that I didn’t exceed the £1000 allowance on the none ISA saving account do I pay any tax? Or I did exceed because together with ISA account I made £1600 so I have to pay tax anyway?

[@michaelkennedy8766]

No tax payable

[@Jeffybonbon]

lets see what happens on Halloween Trick or Treat

[@lawrencer25]

❤ Fabulous video ❤🎉

[@MrKevSm1th]

Thanks Kiran

[@qed456]

Is it worth getting Premium Bonds instead Ms Kaur?

[@sweetvuvuzela4634]

Sure is if you got money to spare as it’s almost instant access

[@NA-dg3jx]

Biggest con there is

[@Neptunianist]

She does mention PBs at around 6:15.

[@sweetvuvuzela4634]

@@NA-dg3jx not if you been winning small amounts each month

[@steves427]

​Good place to hold a large amounts up to £50,000 tax free in addition to ISA options should you come into some money or want to reduce your tax on savings interest over £1000.00 or both.