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So, my Mum's been complaining that she owes HMRC some money for unpaid tax, I think for a stocks and shares savings plan she closed in '23. I've helped her in the past, she's got (most) of her marbles, is independent, owns her house, etc, I've made sure that her cash ISA is topped up - and will again when we roll over into April. She's just told me that she's been saving £225 a month into some sort of equity based bond for a few years and has a chunk in there (she thinks around £50k), she has various other cash savings accounts. I'm going around tonight to have a look and see what the craic is with her tax code, but for the (too much) money that she has sloshing around in various taxable savings vehicles would I be right in suggesting a rough plan of:
Liquidate her equity savings vehicle as the long termness of it is probably not relevant for her
Max her cash ISAs
£50,000 into Premium Bonds as they're tax free
Rest into cash savings accounts (making sure she keeps under the £85k limit per bank)?
I've suggested that she actually spends some money on stuff that makes her happy too....... But folk that grew up in the 50s seem to prefer to make do with what they've got.
Any suggestions welcome! Irritatingly trying Google just brings up lots of sponsored links for savings providers.
Sounds like a plan to know where the cash is. Just tell her she'll have to pay tax in her interest (over £1k) so she's doing well
Sounds like a plan to know where the cash is. Just tell her she'll have to pay tax in her interest (over £1k) so she's doing well
Yes, definitely a good idea for either her to make a note of all her savings accounts or at least to let someone else know in case of the worst happening. Mate of mine died & I'd agreed to be his executor - I knew he had about £20k in a Sainsbury's account but only down to his hoarding & my diligence did I discover the other £300k in various accounts - he lived very much like he didn't have much money too.
tbh i'd just ask around for a decent wealth management company and let them deal with it. My mums so much less stressed now that it's all taken care of, she heads into london once a year for an update meeting and the rest of them time just lets them manage it as she's (in very broad strokes) instructed them.
much easier for my declarations at work as well so i don't have to faff with preclearance if she does anything
First step would be to check she really owes HMRC. Lots of scams going around and some of the HMRC ones are remarkably good.
Thanks all, some good advice. Think we're safe from it being a scam thankfully, they're talking about adjusting her tax free allowance to cover the unpaid which is what happens for me as a working person. If they were asking for money I'd be more suspicious!
All the above plus make sure liquidating her equity portfolio you don't get any cgt liability, spread the sales over a few tax years. Make sure you are claiming any allowances she may be entitled to, care, heating, home improvements etc.
Good luck, I looked after a relatives savings, q easy, just copied my own strategy.
tbh i'd just ask around for a decent wealth management company and let them deal with it. My mums so much less stressed now that it's all taken care of, she heads into london once a year for an update meeting and the rest of them time just lets them manage it as she's (in very broad strokes) instructed them.
much easier for my declarations at work as well so i don't have to faff with preclearance if she does anything
I do think this is the best advice. I don't know how old your mother is but there will definitely be a time of life for everyone where having someone else manage everything will make sense rather than self-managing, even if it costs a bit more. Whenever pensions come up on here lots of people start talking about self managed drawdown from investments. I've been doing that on behalf of my mum (under a PoA) to pay her care home fees and there will definitely be a point in my own life where I'd just want a regular amount coming into my current account and having someone else worry about the details.
As above about cap gains.
premium bonds are not the best return for most people.
i use Hargreaves Lansdown for cash savings (active savings, money spread below fca limit over various different suppliers) (*plenty of other companies offer a umbrella of other accounts facility). (*do ami of fixed periods to start with so money available in tranches)
sorry, but has she done a will, poa(financial and health), funeral plan etc. and again sorry but fyi I ran my dads house and money stuff for about 18months (where he could sort of live on his own supported by carers and friends etc ), easy as I knew and had access to everything (bills, insurances, council taxes etc etc, bank accounts, knew about his pensions etc, ) so knowing all that stuff lets you help out and keep an eye on things.