16 Jul
Double Your Savings
Government Help to Save Scheme – Double your Savings
Help to Save is a scheme backed by the Government to help certain individuals build up their savings. The scheme works by giving people a total of a £ 1,200 tax-free bonus over a four-year period. All savings in this scheme are secure as they are backed by the government.
How Does the Help to Save Account work?
Through the Help to Save Account:
- You can save up to £50 per month in the account
- You do not have to save every month
- Two years after the account is opened, you will get a 50% bonus on the savings you have accumulated
- You can continue to save for another two years in the account and receive another 50% bonus on the savings
- The accounts will mature after 4 years and you can get an aggregate bonus of up to £1,200
Who can use the Help to Save Scheme?
The Help to Save scheme is for individuals who either:
- Receive Universal Credit or
- Receive Working Tax Credit
Video: 5 Quick ways to Save Tax
Few simple checks can help you save tax. Watch the video learn about these checks and how most likely they will affect you.
What happens to the money you saved in the Help to Save Scheme?
The Help to Save Scheme matures four years after you open it. There are a few key things to keep in mind:
- The account will close after 4 years.
- You will not be able to reopen your account or open another Help to Save account
- You will be able to keep all the money you have accumulated over the four year period
- You can close your account at any time, however, if you close your account earlier, you will miss your next bonus and will not be able to open another one
What more do I need to know about the Help to Save Scheme?
- The accounts will be provided by NS&I
- The account will be managed by HMRC and you can apply for it through your gov.uk account
- The bonuses provided by the government on the account will not be taxable
- The bonuses will 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.