I stopped work 18 months ago so surviving on my existing assets. My modest combined pension pots are up about 6.4% since the start of the year, which I regard as modest but solid - if they performed on that basis in perpetuity I'd be pretty pleased. I've put smallish chunks of cash on deposit for two years at 6.1% and five years at 6%, which I'm very happy with.
….updates so far appear to suggest relatively low prizes compared to recent months which is interesting at a time that NS&I are publicising record total payouts. Conclusion: we are Charlton fans with ‘lower than average’ luck!
Disappointing £50 and a £25 for me. £25 for the wife ( who has had a very poor return recently and like Fanny is going to move to interest paying account). Junior got £50.
£100 for me which will do nicely as I am already having a rare good year where the return is a little above the expected % rate.
It is however now time for the regulatory bodies to investigate @Rob7Lee ‘s father-in-law 😂
His £50k seems to regularly out strip our circa £130k, go figure. Must admit it is getting to the point now where I may cash in, my eldest has cashed almost all of hers in as return much better in Savings. But the tax free element remains nice especially as my wife's out of headroom really to avoid any more tax.
Just had a count up and my prize total for the year from Sept 22 is exactly £2k (no single prize over £100) on a holding at the start of that time of around £47.8k. That's a decent return.
His £50k seems to regularly out strip our circa £130k, go figure. Must admit it is getting to the point now where I may cash in, my eldest has cashed almost all of hers in as return much better in Savings. But the tax free element remains nice especially as my wife's out of headroom really to avoid any more tax.
Keep seeing posters refer to the tax free benefit of PB but doesn't this only apply if you have the winnings converted to PB (assuming you don't already hold the maximum) or transferred to a non interest account. If you have already used up your personal saving allowance & you earn interest on your account, those winnings will be taxed, wont they. Am I missing something ?
His £50k seems to regularly out strip our circa £130k, go figure. Must admit it is getting to the point now where I may cash in, my eldest has cashed almost all of hers in as return much better in Savings. But the tax free element remains nice especially as my wife's out of headroom really to avoid any more tax.
Keep seeing posters refer to the tax free benefit of PB but doesn't this only apply if you have the winnings converted to PB (assuming you don't already hold the maximum) or transferred to a non interest account. If you have already used up your personal saving allowance & you earn interest on your account, those winnings will be taxed, wont they. Am I missing something ?
The prizes are tax free (like interest returns on an isa). If you then place that prize money in a normal interest-bearing account you may be liable to pay tax on any subsequent interest earned.
His £50k seems to regularly out strip our circa £130k, go figure. Must admit it is getting to the point now where I may cash in, my eldest has cashed almost all of hers in as return much better in Savings. But the tax free element remains nice especially as my wife's out of headroom really to avoid any more tax.
Keep seeing posters refer to the tax free benefit of PB but doesn't this only apply if you have the winnings converted to PB (assuming you don't already hold the maximum) or transferred to a non interest account. If you have already used up your personal saving allowance & you earn interest on your account, those winnings will be taxed, wont they. Am I missing something ?
No, the winnings themselves are all tax free. If you deposit them in an interest-bearing account, that is subject to tax, then that interest is taxed.
His £50k seems to regularly out strip our circa £130k, go figure. Must admit it is getting to the point now where I may cash in, my eldest has cashed almost all of hers in as return much better in Savings. But the tax free element remains nice especially as my wife's out of headroom really to avoid any more tax.
Keep seeing posters refer to the tax free benefit of PB but doesn't this only apply if you have the winnings converted to PB (assuming you don't already hold the maximum) or transferred to a non interest account. If you have already used up your personal saving allowance & you earn interest on your account, those winnings will be taxed, wont they. Am I missing something ?
My winnings are paid directly to my bank account. No tax as far as I'm aware.
Thanks for the responses. So depends on your circumstances & what you do with the winnings that determines whether they are actually tax free savings.
Not sure if you are getting it.
The winnings are tax free. What you do with that money is then subject to tax depending on where you put it.
I won £250 today. That was tax free. I could then put that money into an ISA, which would then attract interest which would then again be tax free. I could put the money into a pension that would attract tax relief. I could simply put the money into a savings account which could attract interest which could be subject to tax depending on my circumstances.
With your thinking you wouldn't want to earn income as that would be taxed twice. Once by the taxman & again in your bank / savings account.
The winnings are tax free. What you do with that money is then subject to tax depending on where you put it.
I won £250 today. That was tax free. I could then put that money into an ISA, which would then attract interest which would then again be tax free. I could put the money into a pension that would attract tax relief. I could simply put the money into a savings account which could attract interest which could be subject to tax depending on my circumstances.
With your thinking you wouldn't want to earn income as that would be taxed twice. Once by the taxman & again in your bank / savings account.
Thanks, was just looking at it from my own circumstances. Already exceed my personal saving allowance and can't move anymore into an ISA until the next financial year. Any winnings are transferred to my bank account & I earn interest on that account so was thinking any winnings would be subject to 20% or 40% tax. However, your post made me rethink & have a bit of a eureka moment ! Now realise I wont be taxed on those winnings but only on the interest earned on the account overall. So most of those winnings will be tax free. Hope this makes sense & I'm not confusing things even more.
The winnings are tax free. What you do with that money is then subject to tax depending on where you put it.
I won £250 today. That was tax free. I could then put that money into an ISA, which would then attract interest which would then again be tax free. I could put the money into a pension that would attract tax relief. I could simply put the money into a savings account which could attract interest which could be subject to tax depending on my circumstances.
With your thinking you wouldn't want to earn income as that would be taxed twice. Once by the taxman & again in your bank / savings account.
Thanks, was just looking at it from my own circumstances. Already exceed my personal saving allowance and can't move anymore into an ISA until the next financial year. Any winnings are transferred to my bank account & I earn interest on that account so was thinking any winnings would be subject to 20% or 40% tax. However, your post made me rethink & have a bit of a eureka moment ! Now realise I wont be taxed on those winnings but only on the interest earned on the account overall. So most of those winnings will be tax free. Hope this makes sense & I'm not confusing things even more.
Almost there. All of your PB winnings are tax free. In your scenario above, it is only the interest that you then earn on it that is subject to tax.
Comments
So far this year
Jan. Nil
Feb. 100
March. 150
April. 200
May. Nil
June. 25
July. Nil
Aug. 100.
That's 575 so far this year on 22k worth of bonds so considering how low interest rates we're at the start of the year I think I'm doing OK.
Full £50k stake. Needed soon for house purchase but might just get to into Sept draw before having to take it all out.
He is well ahead in our tally so far this year
Cash ISAs with a monthly income has got to be the way forward for us.
So, au revoir, Savings & Investments thread.
And good luck to the remainers.
No tax as far as I'm aware.
The winnings are tax free. What you do with that money is then subject to tax depending on where you put it.
I won £250 today. That was tax free. I could then put that money into an ISA, which would then attract interest which would then again be tax free. I could put the money into a pension that would attract tax relief. I could simply put the money into a savings account which could attract interest which could be subject to tax depending on my circumstances.
With your thinking you wouldn't want to earn income as that would be taxed twice. Once by the taxman & again in your bank / savings account.