I am software development consultant acting as a sole trader (self employed). My main expenses are ultimately paying my self and some hosting.

Every time I have an invoice paid I put a percentage into an account to later pay tax from.

This all works well enough. However I have lots of money sitting in an account for most of the year, not generating much interest.

**Is there something better I could be doing with my tax savings?**

With the caveat that losing (too much), if an investment goes sour, would be bad; as the tax office has nasty penalties.

Ideas I have had:

1. Term deposit/CD (maturing at tax time)
2. Invest in stock market with a savings buffer
3. Invest in stock market with some form of derivative, to hedge downward movements
4. Vegas! (Not really )

\*Any suggestion will be passed by an accountant, yada yada.

\*\*Although this question used a scenario about tax on income, it equally applies to other large personal tax bills (Property tax etc)