The short answer: a sinking fund is a pot you add to a little each month for a cost you know is coming but that doesn't happen every month. The hardest part is remembering what those costs are. This list covers 30 common ones in the UK, grouped so you can go through them in a few minutes, with the current official price for the ones that have one.
New to the idea? Our guide to sinking funds and how to work out a monthly amount explains the basics first.
How to use this list
- Read through and note every cost that applies to you.
- Write down roughly what each one cost last time, and when it's next due.
- Divide each cost by the months until it's due. That's your monthly amount. Our free sinking fund calculator does the sums for you.
- Start with the two or three biggest or most stressful, and add more later.
What the fixed-price ones cost right now
Some of these costs are set nationally, so you don't have to guess. These are the official prices as of October 2026.
| Cost | Official price | Spread over 12 months |
|---|---|---|
| TV licence (colour) | £180 a year | £15.00 |
| Car tax, standard rate for cars registered from April 2017 | £200 a year | £16.67 |
| MOT for a car | £54.85 maximum | £4.57 |
| Adult passport, applied for online | £102, every 10 years | £8.50 if you start a year ahead |
| Prescription prepayment certificate, 12 months (England) | £114.50 | £9.54 |
| NHS dental check-up, band 1 (England) | £27.90 | £2.33 |
| Railcard, 1 year | £35 | £2.92 |
A few things worth knowing about these. The MOT price is a legal maximum, so many garages charge less. Car tax is a different amount in a car's first year, older cars are taxed by emissions band, and cars with a list price over £40,000 (£50,000 for electric cars) pay extra. NHS dental treatment in England goes up to £76.60 for band 2 (fillings and extractions) and £332.10 for band 3 (crowns, dentures and bridges). Prescription and dental charges are different in Scotland, Wales and Northern Ireland.
Car and travel
- MOT
- Car service
- Car insurance, if you pay yearly
- Car tax (Vehicle Excise Duty), if you pay yearly
- Tyres and repairs
- Breakdown cover
- Railcard or season ticket renewal
Home
- Home and contents insurance
- TV licence
- Boiler service
- Small repairs and maintenance
- Replacing appliances
- Garden and outdoor costs
- Gutter clearing or chimney sweep
- Ground rent or service charge, if billed yearly
Gifts and celebrations
- Christmas
- Birthdays
- Weddings you're invited to, including travel and outfits
- Anniversaries, Mother's Day and Father's Day
- Leaving and baby presents
Family, health and pets
- School uniform and trips
- Kids' clubs and holiday childcare
- Dentist and opticians
- Prescription prepayment certificate
- Pet insurance, vaccinations and vet visits
Subscriptions and one-offs
- Annual subscriptions and memberships
- Software and phone upgrades
- Professional fees or renewals
- Holidays and days out
- Your own "life happens" pot for things that don't fit anywhere else
A worked example with real prices
Here are five of the fixed-price costs with different due dates. The monthly amount is the price divided by the months left.
| Pot | Price | Months away | Per month |
|---|---|---|---|
| TV licence | £180.00 | 12 | £15.00 |
| Car tax | £200.00 | 5 | £40.00 |
| MOT (maximum fee) | £54.85 | 7 | £7.84 |
| Passport renewal | £102.00 | 10 | £10.20 |
| Dental check-up | £27.90 | 6 | £4.65 |
| Total | £77.69 |
Notice how the car tax pot dominates because it's due soonest. Once it's paid and you restart it with a full 12 months to go, it drops to £16.67 a month. That is the whole point of starting early.
Keep it simple
You don't need 30 pots. Many people group similar costs, for example one "car" pot and one "gifts" pot. What matters is that the big, predictable costs have somewhere to come from, so they don't land on a credit card or knock your monthly budget off course.
For costs that are truly unpredictable, like a boiler breaking down, an emergency fund is a better fit than a sinking fund. For bigger goals with a date, like a holiday or a house deposit, see how to set savings goals you can actually track.
Frequently asked questions
What should my first sinking fund be?
Start with the cost that caught you out most recently. For many people that's car costs, Christmas or an annual bill like home insurance.
How many sinking funds is too many?
There's no right number. If you find lots of small pots hard to keep track of, group them, for example one pot for car costs and one for gifts.
Should sinking funds include things I might not need?
Sinking funds work best for costs you're fairly sure about. For things you can't predict, like a broken boiler, an emergency fund is a better fit.
Sources
- GOV.UK: TV Licence
- GOV.UK: Vehicle tax rates
- GOV.UK: MOT test fees
- GOV.UK: Passport fees
- NHS: Prescription prepayment certificates
- NHS: How much NHS dental treatment costs
- Railcard: prices
Keep reading
- Sinking funds: how to plan for irregular costs: the basics, with the simple formula.
- How to budget for Christmas: the biggest sinking fund of the year for many people.
- How to set up a zero-based budget spreadsheet: give every pot a job in your monthly plan.
- Free sinking fund calculator: work out a monthly amount for every pot in seconds.
Track every pot in one place
Our Sinking Funds Tracker holds up to 15 pots, works out what to set aside each month, and shows which costs land when over the next year. It's also part of The Whole-Life Bundle.
Important: This article is general information to help you organise your money. It is not financial advice and doesn't take your personal circumstances into account. Prices were checked against the official sources linked above in October 2026 and can change, so check the current figure before you plan around it. For free, impartial guidance, visit MoneyHelper. If you're worried about debt, contact StepChange or Citizens Advice.