Saving for Tax - Feedback

Our Saving for Tax tool is now available on Android, and will be launching on iOS imminently :tada:. We’d love to collate your views and any feedback and feature requests that you might have, here.

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Looks like it works brilliantly as always, but as soon as I saw no mention of an interest rate, I would never consider it. I use the tax estimate and move it into a savings account so I can earn interest on the money, then pay the bill in January to maximise it.

Out of interest (pun intended), what rate do you get on your savings account? We’d like to offer this too in the future, so it’s good to get a lay of the land for why people store their savings elsewhere

Thanks for your interest :dizzy_face:

My current rate is 0.5% for an easy-access savings account, which has dropped gradually from 1.3% in the last 6 months or so because of ol’ Rona.

According to Money Saving Expert, the best easy-access account is currently 0.6%. https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

You can get higher rates with fixed accounts but you get penalised to withdraw before the end of the term so it’s not usually suitable for freelancers. I’ve got a 3% linked savings account with my bank account but that’s limited to £50 a month.

Still, with all my tax from April 2019 until now, it’s a significant sum so it’s worth having it in a savings account even at 0.5% (along with my actual savings).

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I’m really enjoying Copilot so far, I just have a little feature request: I skipped the weekly save today as I’m not sure if I’ll have enough for my outgoings this month otherwise but it would be good to be able to see that amount so I can still save it at a later date (December is quiet but January is busy for me). Maybe a note in the tax feed saying declined save of £xx or similar? Obviously in a perfect world my cashflow would support it but sometimes I’d like an IOU or IOHMRC to be more precise!

Hypothetically speaking, if Coconut were to offer a means of paying your tax bill directly from your tax vault with cashback of 0.5% (for example) on your tax bill, how would this sit with you? Would this sway you?

Hi Katy,
That’s awesome, thanks for your feedback. Would a ‘delay save’/‘pause’ feature be a good middle point for this? So if you aren’t sure, you can leave it in a pending save to then be actioned when you have more certainty around your outgoings

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Oh yes that would be great, good idea!

Potentially, I’m not sure of the maths on this one. I wouldn’t keep all of my savings in Coconut so it would depend on the best rate I could get elsewhere (and Coconut being able to match it), and if having all of my savings and tax together in a savings account meant a better % return. It’s no hardship for me to move money between accounts as everything’s on my phone, even though I have to move from Coconut > Current Account > Savings Account. It’s still very easy.

That said, I would have to move to the paid account so if I upgraded for this feature alone it would be a big loss on the interest income. I’m sure I will upgrade at some point, and if the free account ended I would definitely upgrade, but there isn’t a reason for me to do that just yet.

Also, I know the money in Coconut is ringfenced but with the larger amounts I feel it’s safer with FSCS protection. So that’s a consideration too.

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When I tried the get started on two occasions it just hung the app and Android reported coconut not responding and I sent crash reports back.

Hey Kevin :wave: I’m an Android engineer here at Coconut. Sorry that this isn’t working quite right for you! I’ve just sent you a DM so we can investigate further

Hello, how ‘imminent’ is the release for IOS users?
I have updated to a Grow plan last month and I I spoke with someone on the team 4 weeks ago who mentioned the beta version of this would be available through Copilot so I signed up for it but heard nothing back.

Thank you

It’s a smart idea - but having been in the habit of shifting a chunk of cash into a Monzo pot for a long time, is there any reason, other than pure convenience, to do this? I’m not currently on a paid plan - so i’m assessing the incentive to change my tax-saving system.

Hi Nico
This is live in the app store and should be available to you on the tax tab. Just tap ‘Get started’…to get started.
Let us know your thoughts!
JB

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Hi @J.B I don’t see anything different on the tax tab

Hi @Sundaypapers
Good work getting in that habit, great to hear. On the one hand it’s about convenience, as VaultAgent (nee. CoPilot) will do this all for you, so you can just forget about it.
But the added bonus for you is that VaultAgent will recommend the right amount to save at the outset and do that for you on your chosen schedule, all whilst referencing your live tax estimate. This means you have a clear view of how close you are to having put enough aside for your tax return.
We also plan to expand its capabilities in the future by introducing support for bills. This means we would consider any payments on account you’re liable for (if you’re a sole trader) and save towards that, moving on to the next bill once you have saved enough.
I hope this adds some colour for you
JB

Absolutely, ask any and all questions!

What happens when the tax year changes?
As it stands, the saving is referencing the current tax year. This was to help us get the feature out quicker so people can start saving straight away. We then want to bring in the concept of bills, which will have paid statuses against each bill, meaning any funds in your vault will only reference outstanding bills that you have. This is a bit more complex as there is the element of time to consider, as well as paid statuses of each bill. This feature is a work in progress, but it’s something we hope to support by the time the new tax year comes about.

Are reserves for different tax years held separately?
No, there will be a single vault for all funds. But once we bring in bill support, we will show your progress against each unpaid bill. This will mean you know the exact amount you have saved, how much you need to save and what you owe all at once.

Do I have access to add and withdraw from the tax fund at any time?
Yes!

How do you handle the payment on account?
This will be a mixture of the bills support, as well as our clever stuff in the background to calculate your payment on account liability. Depending on whether you’re new to self-employment or not, we will either calculate the payment on account from the get go, or get details on your last payment on account, respectively. This will allow us to tell you exactly what your next bill will be (and how much you have saved towards it)

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Cheers - I’ve just signed up for it. One thing I’m not understanding is how it divvies up tax reserves for two different tax years. Currently I have two amounts in two different Monzo pots - one for 2019-2020 - and one for 2020-21. How will my Coconut vault deal with those two funds?

Just seen your reply above. So it’s just the current tax year for the moment. That’s fine and good to know.

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Hi @Nico_Biarese
Sorry, I missed your reply yesterday. You can make sure you’re on the latest version of the app by clicking this link on your phone > super fun link. If the option to update isn’t on that screen then you’re already on the latest version.
If you still don’t see the getting started button under the green block that shows your tax estimate:

then please do a sign out and back in (also from the bottom of the settings area) to ensure that everything is cached correctly on your phone.
If you are still not seeing anything after that, please raise a support chat through the app so that our Customer Operations team can query your issue further.
JB