Double your savings

Posted by Clear House Accountants on February 4th, 2019

Help to Save is a new scheme which is backed by the Government to help working people who are on a low income so that they can build up their savings. The scheme works by providing people with a £1200 tax-free bonus over a four-year period.

The help to save account which has been created for people on low incomes works as follows:

• Individuals can save up to £50 per month in the account.
• Two years after the investment is made the savers get 50% bonus which is based on the highest balance achieved to that point.
• The individuals can keep on saving for another two years and will receive another 50%bonus of the savings.
• The accounts will mature after 4 years and will provide a total bonus of up to £1,200.

Who is this available for?

For people who either

• Receive the universal credit and have a minimum national weekly household earning of 16 hours, or
• Receive the working tax credit

How to get it?

• The accounts will be provided by NS&I
• The account will be managed by HMRC and can be applied through the gov.uk account.
• The bonuses provided by the government on the account will not be taxable.
• The bonuses will also not be counted towards universal credits of the tax credit system.

The scheme was under trial until the 18th October 2018 and is now available for all eligible persons.

Clear House Accountants are Specialist Accountants in London who can help you devise smart solutions for tax and accounting to maximize tax savings and improve cash flow.