Pensions.....Why bother?

[blurr]

offset

Anyone managed to get more than one personal current account offset against a woolwich open-plan mortgage?

They told me only one current account could be associated with the mortgage.

[Freelancer Financials]

Offset Mortgages work well for contractors

Anyone managed to get more than one personal current account offset against a woolwich open-plan mortgage?

They told me only one current account could be associated with the mortgage.

Yes you can have more than one linked account associated with a Barclays Woolwich Offset Mortgage. We normally set-up our clients with a minimum of two. One current account and another called savings.

Offset mortgages are a hybrid flexible mortgage which allow you to use the balance of linked savings and current accounts to reduce what you pay in interest on your mortgage. On a daily basis the total of these credit balances is swept across your mortgage debt and you only pay interest on the balance between the two. These schemes are great for contractors who often have money on hand throughout the year, but don't want to lock it away by formally paying off a lump sum of the mortgage.

You may have some cash savings for personal or tax, or just declared a dividend to last a few months. All this extra cash in your accounts can be used to offset against your mortgage instead of gathering dust in poor performing accounts elsewhere.

Can you use money in business accounts to offset your mortgage?

Barclays Woolwich will not allow you to use your business accounts directly to offset a mortgage. The only feasible way of using the money would be to move it into your current account.

John Yerou
FreelancerFinancials

[fckvwls]

wibble

He asked the question 7.5 frigging years ago. I appreciate your attempt at helpfulness and perhaps drumming up some business for yourself but I think the horse may have bolted as far blurr is concerned.

[Freelancer Financials]

He asked the question 7.5 frigging years ago. I appreciate your attempt at helpfulness and perhaps drumming up some business for yourself but I think the horse may have bolted as far blurr is concerned.

The advice is still helpful to contractors considering Offset mortgages today.

[downsouth]

The advice is still helpful to contractors considering Offset mortgages today.

Have you considered then writing some up to date guides on what us contractros can do with our cash?

sure to be of use on here I bet.

[Freelancer Financials]

Have you considered then writing some up to date guides on what us contractros can do with our cash?

sure to be of use on here I bet.

Everyone is unique. It depends on personal circumstances, age and how much cash you have?

Contractors can make use of a number of tax breaks available. The two most commonly used are ISA's and Pensions:

ISA's:
Rather than hold cash on savings accounts that will then generate taxable interest our clients have been able to build up a substantial 'nest egg', by using all or part of their Individual Savings Account (ISA) allowance. Each tax year ending April 5th, contractors can invest up to £7,200 into this tax efficient 'wrapper'. 'ISA allowances cannot be carried forward to the next tax year and so it's a case of use it or lose it.

Pensions:
Pensions are a great way for contractors to invest due to the significant tax breaks available. Pension investments can be invested from gross income (before tax) and thus attract tax relief at your highest marginal rate of tax.

[B]Invest in a BTL Property[/B
Good time to invest in a BTL property if you have a minimum deposit of 25%.

If you really want to know what to do with your hard earned cash then make an appointment with a financial advisor to conduct a financial review.

[centurian]

Invest in a BTL Property
Good time to invest in a BTL property if you have a minimum deposit of 25%.

Can you get a decent BTL mortgage on a 25% deposit while being self-employed.

Easily got enough for that, but looking at building up the pot and buying outright at auction. Just got to make sure I get enough cash before the train leaves the station.

[kaiser78]

Pensions:
Pensions are a great way for contractors to invest due to the significant tax breaks available. Pension investments can be invested from gross income (before tax) and thus attract tax relief at your highest marginal rate of tax.

[B]Invest in a BTL Property[/B
Good time to invest in a BTL property if you have a minimum deposit of 25%.

If you really want to know what to do with your hard earned cash then make an appointment with a financial advisor to conduct a financial review.

My FA has suggested to invest in equity ISAs instead of pensions, as the tax breaks cancel each other out - one taxed on entry the other on exit, but I can still access the funds if I need them in the future in the ISA route. Is this a recommendable way to proceed ?

Also why is now a good time to invest in BTL even with IR being low but a saturation of BTL properties remaining empty from what is read ?

Thanks.

[Fred Bloggs]

Contractors can make use of a number of tax breaks available. The two most commonly used are ISA's and Pensions:lief at your highest marginal rate of tax.

Let's get things straight here- They are NOT "tax breaks that contractors can make use of". They are tax breaks ANYONE can make use of.

[Olly]

Let's get things straight here- They are NOT "tax breaks that contractors can make use of". They are tax breaks ANYONE can make use of.

hear hear...a tax break contractors can make use of is their company making chunky pension contributions ....but you all knew that already and you definitely knew about the cutting edge advice above!

p.s. I'm in the sod pensions group - relying on drawing down dividends from ltd until nowt left....whilst 21% is corporation tax saving is nothing to scoff at the downsides of tying up your cash in possibly poorly performing fund and then having restricted options what to do with it at retirement plus essentially not being able to touch it until then all add it to a pension not being as attractive is the headline tax saving. IMHO