Tax Saving Pot

For anyone self-employed who has to do a tax return at the end of the year, it would be great to create a pot which does the following:

  • When you create the tax savings pot, you enter your important tax details (e.g. whether or not you have a student loan).

  • Every time you get paid for a job you enter that amount of money you earned into the tax pot.

  • The pot then calculates the tax, national insurance, student loan etc. owed on that earnt amount and transfers it from your main account into the tax pot.

  • The pot also keeps a running tally of how much you’ve earnt, changes tax brackets accordingly as you earn, and factors the tax free allowance into its calculations.

That way, every time you get a payment from an invoice, you’re saving the correct amount of tax gradually - something I know a lot of self employed people struggle doing.

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This would be covered under the business account development. Best thing to do would be to sign up for the business account waiting list and play the waiting game

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Great idea - think it’s been mentioned once or twice in other business-related threads.

Not sure if an IFTTT applet could do the same for now? Worth looking into it

Nice idea for the business accounts.

But why a ‘calculator’ I should be able to say ‘this was income’ and the clever stuff happens to move % of the income amount to the Tax Pot.

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gmclean - sorry to be a bit rude and a bit d**kish but can’t think of a simpler way to say it… what you described is what I wrote… it isn’t just a calculator, it’s transfers the amount from your main account.

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No worries, I’ll be more explicit… it’s a good idea but this point is one i think could be automated.

“Mark as income” with, ideally, a way for Monzo to remember that money coming from the same source is always income… and the rest is automatic. Just a minor thing (cos I’m lazy!) which could be easily automated and save me having to enter amounts (I have a couple of sources of income and the amounts change frequently).

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I love this idea :heart_eyes: we’ve heard you, and have added it to our trello board. This is hopefully something we can work on soon!

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:soon: :laughing:

Great! Looking forward to it. Also would be good to have it really LOCKED until April ))) I have problems with money management )))
Or might be to make it hidden from the main screens will help…

Thinking aloud (well, on the keyboard)… Within my business account I have to keep track of corporation tax. But the income tax calculation needs to happen in my personal account, once my salary arrives there, as the income tax bill is paid personally and not by the business. Which is more complex for me as there’s also 7.5% of dividends above £2000 etc. Not saying that this can’t be done but the different use cases for sole traders, employees, directors etc. could be complex.

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Yup. Many variables across different types of business accounts to be thought through.

Locked until a date I choose please (my corporate tax year doesn’t end in April). :slight_smile:

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Personal tax year ends in April but you have until end of January to pay, earlier if you wish if you’ve completed your tax rerurn. Corporate tax year can be any time then you also have months to pay, again, earlier if the company decides to do so.

So @Nadyusha maybe a date that you can choose yourself for the unlock for either personal or corporation tax pots, but you’d need to think about when those dates should be.

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This is a great ideal, implemented quickly too! The only thing I’d like to see changed is the ability to manually select your own percentage to save. Surely this won’t bd hard to set up.

I also don’t see why interest can’t be gained on tax savings pots. If you are going to have a reasonable sum of money in a savings pits fir 12 months why can’t that gain interest as you set money aside for your tax bill? I know it’s what a lot of us have been doing for years when banking elsewhere. Would be nice to monzo offering the same.

I second the idea to be able to input your own percentage for the tax pots. None of the preset percentages align with any of the tax amounts I need to pay e.g. Flat rate VAT at 16.5%

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