Q - Where does one enter NS&I premium bonds?
A - Because the monthly draw on Premium Bonds has lots of levels of tax-free winnings from £100 upwards, there has always been the idea that, with a large enough holding, you can generate a certain level of (albeit very variable) tax-free return with always the remote chance of a big win.
While we don’t explicitly model premium bonds, the 'National Savings Certificate' is the appropriate designation for a savings account that is both tax-free and is not limited in terms of contributions, as with a Cash ISA.
Click the (+) button
Navigate to the Savings & Investments
Set the NS & I Premium Bonds up as Savings Accounts>National Savings Certificate, naming it NS & I Premium Bonds.
Prizes could then be entered and scheduled as non-taxable inflows on either the Other Income or Windfalls screens. Both screens are good catchalls for tax-free inflows.
Select Other Income or Windfall
Consider setting Other Income initially at £0 pa in the Income £ field.
Select Non-Taxable at the taxation setting for the income.
On the Timing menu, located on the left hand side of the Other Income screen, select when the income will start and end by either dragging and dropping an existing Event into the relevant boxes (Diagram 1) or clicking on the grey box and selecting the start and end events (Diagram 2).
These start and end events will determine the time span over which year-to-year tax-free winnings might be earned.