Yes as an example if you made 29500 in wages and 500 in gains from these bills your total income would be considered to be 30000. Which in Scotland means (according to the BBC Scottish Budget: Higher earners to pay more income tax - BBC News ):
12570 @ 0% = 0
2305 @ 19% = 437.95
11684 @ 20% = 2336.80
3438 @ 21% = 721.98
For a total tax bill of 3496.73, of which you would have already payed via PAYE 3391.73 so you would owe an additional 105 from the 500 pound gain via the treasury bill.
If your income pushed you into an even higher bracket then you would owe proportionally more.
Thanks man, I Usally use the hmrc app then I would add the cash on and see the difference but you done it the good way as well.
I used to be able to do it on a calculator but forgot haha, think I’ll need to re learn and add ur to my spreadsheet been something I have been meaning to do, but thanks for the workings.
I have another question about these bills in that why does the deadline keep getting pushed forward it was supposed to buy them yesterday at 4.30 pm now it’s moved to Jan the 5th.
So I have for me a large sum just sitting there doing nothing and I’m now loosing interest from my bank so the longer that sits and doesn’t actully buy in it will just start to be meaningless.
Its my rainy day fund as well as a vital sum that’s needed for an account to work aka my vantage, I don’t Usally well haven’t ever used this money for investments but because this is classed as super save I did. It’s just annoying the time slot to buy in keeps getting pushed forward.
To the people who bought in earily has yours went through yet?
I also have a question about paying the tax due on these. Can I just add it on as other income on my PAYE tax account online? I’ve looked around for how to declare this kind of income and can’t find any information from HMRC.
We can’t offer you any advice on your personal taxes, however there are a few relevant posts that have answers from HMRC on their forum regarding the tax treatment of Treasury Bills.
The latter related to reporting income from foreign deeply discounted securities (DDS) but is also relevant to domestic DDS as Treasury bills are classed.
If you’re unsure about anything, please do consult an accountant or properly qualified tax adviser.
With the exception of the week between Christmas and New year, the deadline moves for each weekly batch of treasury bills that are issued. I’ve had 2 weekly orders of £50 go through. Just waiting for the 2nd (this week’s) to fully complete and find out the rate. I’m just doing my toe in to see what happens. Also a tad weary of putting too much in due to the tax implications, and potentially better rate with standard saving accounts once the tax is taken account of.
But no this is why most people don’t invest is just that fact right there is they can’t be fked doing all the reading and researching etc etc that’s Usally what I hear so that’s why we have zero investors in the UK.
Yes I should of looked into it more but at first I thought it was in an isa as it didn’t appear on my screen.
Second I thought after some small research that most things came up saying extremely safe option which is good enough for me.
Now I know it just gets taxed ontop of what I have earned then I will just track it on a sheet.
I know with these, the yield is set at the weekly tender, but is there any way we can know what Freetrade will be bidding each week? Could we be told, and then we’d know that we’re either getting that yield, and are locked in for 28 days, or if Freetrade lose the tender, we would be free to withdraw our funds.
However, the old and wise guy in me is screaming to to hold on until either I have recovered the money I have have lost trading in 2022 or until T-Bills become available in my ISA. Shame because they would be a good addition to my investment portfolio.
like that