Tax planning part 1 - ISAs
As we finalise last year it is time to look forward to the end of this tax year and consider some planning.  The 5th April 2019 tax year end is just over two months away, so we still have time to help reduce the tax bill we will face in January 2020!

In the first part of this blog we look at ISAs and these tax-free savings with help from our friends at Raymond James Investment Services in Hitchin...

What is an ISA?

An ISA is an Individual Savings Account, which you can pay money into each tax year up to the maximum annual allowance. Your ISA savings are then free from both Capital Gains Tax and Income Tax. 

ISA top up

Make sure you have fully utilised your allowance for the tax year by topping up any ISAs you have. It’s very easy to do online, anytime up until the start of the new tax year. 

Wealth Managers Susie and Faye at the Hitchin branch of Raymond James say: “The ISA allowance for 2018/19 tax year has remained at £20,000 (£4,260 for Junior ISAs). ISAs remain one of the simplest tax planning vehicles – there are no complicated structures, just an open wrapper in which different investments can be placed.”

Different types of ISA

If you have found that the falling interest rates on cash ISAs have seen disappointing returns recently, have you considered Stocks & Shares ISAs? Susie and Faye say these “don’t have to go into risky market investments if that doesn’t suit you”, but offer an alternative to cash ISAs. 

Flexible ISAs allow you to replace any money taken out to maximise the subscription each year.

And don’t forget Junior ISAs where you can make contributions on your children’s behalfs. 

If you have any questions about ISAs and tax just drop us a line and we’ll be happy to help. Next time we look at making the most of pension tax benefits.
 

Get in touch - If you'd like to find out more about how we can help you and your business pay less tax, generate more profits and create long-term wealth for you and your family, please get in touch now