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  1. #1

    Savings account which permits third-party payouts

    Hi all. For many years I have been using a Tesco savings account into which money is paid, by standing order, every month. Every 6 months (on 31 January and 31 July) that money is paid out directly from the account to HMRC to settle the half-yearly self-employed tax bill.

    Unfortunately Tesco are changing their rules and, from April 2018, it will no longer be possible to make payments to anything other than a personal account held in one's own name. Which makes this account useless for the purpose for which it was set up.

    I am having difficulty finding a suitable replacement for the Tesco account. Does anyone have any suggestions? (Interest rate is unimportant).

  2. #2
    IDK but I do know that people will just be itching to know why you can't arrange to pay it to HMRC via a personal account.

  3. #3
    Nearly every mainstream high street bank offers a current account with the ability to make electronic payments to external accounts, with online access. If you are not restricting yourself by requiring an interest rate on the money you're putting aside for tax (c.f. "interest rate is unimportant"), then you could pick pretty much any account you like.

    A bigger challenge would be to find a bank which could NOT offer a current account that allows a balance to build up and be paid out electronically to a third party twice a year..!

    For example, picking one bank out of a hat:
    - Lloydsbank.com offers a Classic Account with free banking at long as you're not overdrawn. That includes online banking and a debit card if you want it.

  4. #4
    - Alternatively they offer the "Club Lloyds" current account that gives the above, access to other exclusive products, plus freebies like free cinema tickets or magazines and pays interest at 2% AER on the first 5000 of credit balance. However, if you don't pay in at least 1500 every month you will get charged 3 for each of the months you do not.

    Without knowing your circumstances I couldn't tell you whether Classic or Club meets your needs best, but I can tell you that most banks and building societies offer such accounts. If your criteria are simple (only two external payments a year) it will not be hard to find any number of accounts that fit the bill, especially if interest received is unimportant.

  5. #5
    Why don't you simply open a current account with Tesco, then on the day in question do a transfer from the savings account to the current account (this is instant) then pay HMRC from the current account? You shouldn't even have to set up a new payee.


 

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