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Can't decide whether to put the max in (all tax free options are exhausted).
#firstworldproblem
Can’t decide whether to put the max in
Easy; if you got the average 1.5% (or whatever it is now) of the max per annum, how does that compare with what you’d receive from your chosen savings account, and would you pay tax on that? e.g.
a) PB’s payout £750 or even more, it’s all yours to keep tax free
b) Savings account pays out £499* interest (total interest across all accounts), yours to keep tax free
- *If your a higher rate tax payer, any savings related income over £500 attracts tax
- *If your a lower rate tax payer, any savings related income over £1000 attracts tax
Do maths, which gives you the best generated income all things considered?
I won’t be eligible for the draw until March though by the look of it.
Unfortunately so, I generally hold onto the last day of the month before buying anymore because of this delay.
£300 in a mixture of denominations! Time to get the car mot'd, turn the heating on, trip to Aldi or consider another car. Last option would reduce my pb holding significantly.
Me £350
Mrs Zip nothing
Mrs Zips mum £650
A great big £0 from a maximum pot. The same great big £0 that I got in November. Be better off in a savings account if I didn't have to then pay tax on the savings!.
£100 here - the lowest month yet
£50 for me.
Be better off in a savings account if I didn’t have to then pay tax on the savings!.
How does the tax get paid? Is it just an automatic deduction by the bank and then given to HMRC? Or is there a lot of form filling involved?
My math might not be correct but assuming I only pay tax on interest earnings above £1000/yr a £500000 sum in an account at 4% would return £2000/yr, I would then pay tax on the £1000 @ 40% (£400) which leaves £1600. At current interest rates.
If there is no paperwork and it is all automatically deducted it seems ok. All the tax goes to good causes as well 🤔😉
Yay, £25. A contribution to today’s haircut:-)
A great big £0 from a maximum pot. The same great big £0 that I got in November. Be better off in a savings account if I didn’t have to then pay tax on the savings!.
With that strike rate it’d be better off in savings even if you did pay tax on the savings. 100% of nothing is still nothing…
If there is no paperwork and it is all automatically deducted it seems ok. All the tax goes to good causes as well
It goes onto self assessment so there is paperwork and I am effectively paying 60% tax on any additional 'earnings' and have to add the amount owed to the amount that is already owed for that years as PAYE doesn't handle it when you start to lose you personal allowance.
As for tax going to good causes that is for another thread but taxes don't go to anything and good causes are not something the current government are interested in but that is enough about that otherwise a derail will occur!
My math might not be correct but assuming I only pay tax on interest earnings above £1000/yr a £500000 sum in an account at 4% would return £2000/yr, I would then pay tax on the £1000 @ 40% (£400) which leaves £1600. At current interest rates.
. Not correct. If you are 40% tax payer you only get £500 interest tax free.
A great big £0 from a maximum pot. The same great big £0 that I got in November. Be better off in a savings account if I didn’t have to then pay tax on the savings!.
Half of us will get more than the average winnings / rate of return and half less. It should average out over time tho.
Personally off a maximum pot I am doing really well - £1600 in 8 months.
Yep and the gambler in me would still rather have almost as much as I would get in savings as I am never going to get that big win from a savings account. Plus the money is only transitory until it goes towards an extension later in the year.
Not correct. If you are 40% tax payer you only get £500 interest tax free.
I'm in a lower rate tax band so the £1000 limit applies to me. I just thought that anything earned above £1000 would be taxed at the higher rate of 40%. If I continue to pay a lower rate above £1k I might consider the paperwork 🤔. Further investigation needed I think.
£100 for Mrs JL..... nowt for me again......
Yay, £50 🙂
£125 Fairly happy with that, I've made above expectations the last few month
£175 for me
£0 for Mrs
Nothing for me with a 30k pot
£0 here. Got lucky with £350 last month so I've got an average return of 2.4% over the last year. Without that £350 it would have been 1%.
Nothing for me with a 30k pot
ditto
£500 this month between the pair of us. I'll settle for that; we've not had a bad start to the year at all.
I'm at 4.7% over 12 months which seems ok when you factor in the monthly massive excitement.
2x £100
2x £50
1x £25
Takes me to £6k won since September on a full pot.
I'm winning at something at least!
I think I'm the one who's bank rolling every one else. £100.
CaherFull Member
I think I’m the one who’s bank rolling every one else
Well er, £50 for me. As I always say, it’s £50 more than I had yesterday.
£0 for me with a £7k holding - haven't had anything for over 12 months now
£200 for the wife who has £8k
£150 again.
Better than a kick in the nads.
Zero this time.
I think I got punished this month because I took £7K out last month, didn't win a bean this month 😔 Think the hamsters are aware of that situation though as I had a message saying don't give up you may have better luck next time 🤔
Nothing for me this month but I only have a small amount in there now.
£150 with a full pot.
2 x £50 for me.
Just found out a family member won one of the top tier prizes this month. Not the million but still a healthy chunk of free money.
Hmmm, why can you guys see your winnings, but my account says results aren't out till 2/2?
Rich, it's not the 33rd of January.
🤣😁😉
But... Whhhyyyyyyy?
1 x £100 and 1 x £50 meh
Peak STW
Ive won X on a full pot, wife won X also with a full pot😄😄
Any need for the pot size info.......
well it does provide some context as the more you have in the more likely you are to win.
we are doing very badly at around 2.7% return. weve been taking money out as its no longer worth it.
another 0 for us on still quite a signifncant sum
Nowt for us this month.
Last years return was about 6% (maths is hard as I put in every month, mrs dubs doesn’t)