Missed the ISA Deadline?

The ISA, or Individual Savings Account, has rapidly become the UK’s favourite savings method. Its favourable tax treatment and the ease with which one can be set up have meant that savers have been flocked in their droves.
An ISA is actually a tax wrapper into which you can place other investments. The wrapper provides protection from tax for whatever it is that you want to put in it – for example cash, or stocks and shares. You have an annual ISA allowance that is renewed each year, and there is an annual scramble to make the most of the allowance before the deadline. But what if you miss the deadline, or if you have already used up your allowance? Are there other tax efficient savings methods?
ISA Types
You should note that there are several distinct types of ISA. If you have already used up your cash ISA allowance, you might wish to investigate a stocks and shares ISA.The allowances are significantly higher for stocks and shares ISAs, but it is important to understand that these are investments – as opposed to cash ISAs which are simply savings accounts. You can put your money into a range of investments, including government and corporate bonds, but the value of these investments might fall. The tax treatment is also different to a cash ISA; if you make only interest-bearing investments (as opposed to those that will yield a capital gain), you will pay no tax on that interest. But if you invest in shares you will probably only save money if you are a higher rate taxpayer.
Pension Plans
For a longer-term savings or investment, you should consider private pension plans. There is a huge variety of pension types on offer, and the one you choose will depend on a number of factors including the length of time before you expect to retire, and how comfortable you are with financial risk.Personal pension plans offer tax relief ‘at source’, meaning that the provider will reclaim tax at the basic rate from HM Revenue and Customs. Relief is also available at the higher rate, but you will have to claim this separately. Personal pensions are therefore another tax efficient alternative to ISAs. But, unlike an ISA, you cash may be tied up for a significant period of time. You should make sure that you keep a buffer for emergencies if you choose to make a long-term investment of this type.
Bonds
Finally, given the very poor rates that many savers are currently enduring, you may wish to consider bonds. Many high street banks offer competitive rates on 3- or 5-year bonds and, while your cash will be tied up for a few years and you will not enjoy the same tax treatment granted to ISAs, you can be confident that you will be getting a far better return on your money than if it were sitting in a conventional savings account – or, worse still, in your current account.ISAs provide an appealing opportunity to save in a tax-efficient manner. But they are not the only option for savers. If you have already used up your allocation, don’t panic – there are plenty of alternatives available.
Re: A Guide to Unemployment Benefits
I was in full time employment for 26 years and got made redundant in May 2018. I do have private rental income as I have…
Re: How Much Tax do I Have to Pay?
Hi I have not worked since January this year and recently started a job 30/10/19 that last till January I am wondering if I will…
Re: How can I Close Our Joint Account?
Hi my self and my ex still have s joint bank account i used itc recdntly and he says i owe him money. Joe can I when it's…
Re: What is SERPS and What Was 'Contracting Out' ?
Hi, as many others i was advised take serps. Does this mean i have less pension when i retire i am…
Re: What is SERPS and What Was 'Contracting Out' ?
I opted out but cant find any paper work for it not sure what pension provider how can I find out
Re: What is SERPS and What Was 'Contracting Out' ?
I recieved a pension from royal London for £570 per annum I opted out of serps in the early 80s Is there…
Re: How Much Tax do I Have to Pay?
Hi I'm 20 yrs old it says my tax code is 1185L. I've been unemployed since January and been receiving 200-230 a month.. I've…
Re: What is SERPS and What Was 'Contracting Out' ?
I was advices to opt out of serps in the late 1980s and have no idea what this means I was young and now I…
Re: A Guide to Unemployment Benefits
Hi, I've just been given a 8 month driving ban. As I need to drive to sites to survey and install equipment, I can no longer…
Re: How Much Tax do I Have to Pay?
Hi, my wife works part time and earns 10k a year, yet she is still paying income tax. Can you tell me why this would be as she…