Help-to-save accounts became available to all eligible individuals from 12 September 2018. This follows a trial which opened in January to a controlled group of savers.
These accounts are available to UK residents in receipt of working tax credit or child tax credit. They are also available to those claiming universal credit who have a household or individual income of at least £542.88 for their last monthly assessment period. (Universal credit payments do not count as part of household income.)
Crown servants and members of the British armed forces living overseas who meet either of these eligibility conditions can also apply for an account.
Account holders can save between £1 and £50 every month over a four-year period. Savers receive a 50% tax-free bonus after two years, plus another after four years if savings continue. On maximum savings of £2,400 over four years, the overall bonus would be £1,200.
Eligible savers will be able to open accounts until September 2023.
Victoria Todd, head of team at the Low Incomes Tax Reform Group (LITRG), welcomed the ‘simple, straightforward premise’ behind help-to-save accounts, but urged the government to ensure savers are aware that making withdrawals will reduce the bonus payable, as the bonus is calculated on the account balance and not just on the amount paid in.
Help-to-save accounts became available to all eligible individuals from 12 September 2018. This follows a trial which opened in January to a controlled group of savers.
These accounts are available to UK residents in receipt of working tax credit or child tax credit. They are also available to those claiming universal credit who have a household or individual income of at least £542.88 for their last monthly assessment period. (Universal credit payments do not count as part of household income.)
Crown servants and members of the British armed forces living overseas who meet either of these eligibility conditions can also apply for an account.
Account holders can save between £1 and £50 every month over a four-year period. Savers receive a 50% tax-free bonus after two years, plus another after four years if savings continue. On maximum savings of £2,400 over four years, the overall bonus would be £1,200.
Eligible savers will be able to open accounts until September 2023.
Victoria Todd, head of team at the Low Incomes Tax Reform Group (LITRG), welcomed the ‘simple, straightforward premise’ behind help-to-save accounts, but urged the government to ensure savers are aware that making withdrawals will reduce the bonus payable, as the bonus is calculated on the account balance and not just on the amount paid in.
