The New ISA Limits Are Here – And Here’s How to Use Them to Your Advantage

Saving has been a hot button topic around the country for a long time. Just how do you save when wages are falling and the cost of living is rising? HMRC announced in March that the ISA limits were changing. Now that we’ve had a few months to see what’s going on, there are some facts that you need to know in order to truly make the best decision around.

By now, you should have topped off your ISAs for the previous tax year. But as July 1st approaches, a new ISA limit approaches with it. From here on out, you can put away 15,000 GBP between cash ISA and a stocks and shares ISA. But the new ISA — called the Nisa, brings some flexibility that will make things a lot easier over time. We say “over time” for one big reason: these changes are rolling through in a very slow fashion. Some providers will act faster than others, and transfers may be slower than you would like. Be patient and let the system work itself out. This will be a net positive in the long run, from what we’ve seen so far.

Youth Encouraged to Save

One of the biggest trends that are emerging from the new wave of changes is that youth aged 16 to 18 are being encouraged to save. It’s been shown time and time again that the younger you are when you really start saving money, the more money that you will have over time. The power of compound interest is a proven fact, so we won’t belabor the point here.

New ISA Limits

People in this category get to put away 15,000 GBP into a cash ISA, but they also get to set aside 4,000 GBP in the new Junior ISA account, or “Jisa”. This is an incredibly opportunity to save more than the average person does, and hopefully young people will take advantage of it.

Transfers Allowed…To Cash Only

If you have money in a stocks and shares ISA, you can move it to a cash ISA. You want to make absolutely sure that you’re moving it to a cash ISA that allows for transfers in, otherwise you will not be able to do it.

No Peer to Peer Loans in S&S ISAs… For Now

Peer to peer loans are exploding in popularity across the UK, but that doesn’t mean that you can include them in your S&S ISA. It’s not the best news, but HMRC has promised to review the regulations and assorted issues surrounded these loans and make a ruling in the future. [Continue reading]

Watch Out for these Common Mistakes

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Do you know that you can save money when filing your taxes? Most of you still make common mistakes that cost money when filing taxes. By avoiding these simple mistakes, it is very easy to save money on taxes and get maximum tax return possible. What … [Continue reading]

Could Tax Transparency Schemes Be Coming Your Way

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Taxes aren't high on the UK consumer's list of favorite things, but it's absolutely compulsory. So you need to be aware of any changes that could be possibly coming your way. The truth is that today's bit of news affects the countries that are … [Continue reading]

Limited company contractors – what you need to know about tax

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While operating as a limited company contractor is the most tax efficient way of working on a freelance basis, it is unfortunately not as simple as merely registering as a limited company and choosing to pay less income tax and National … [Continue reading]

PAYE Tax Changes You Need to Know About

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UK taxpayers got a real bombshell last Saturday -- they learned that the Pay As You Earn (PAYE) information has to be reported in real time. This is done by the employer, so you might not be aware of how this affects you. We wanted to chime in with … [Continue reading]

Life insurance and Tax

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There are many people that do not realise that if they inherit a life insurance pay out then they may have to pay inheritance tax on it. They may just assume that they will get a pay out that will cover debt and other expenses and do not think about … [Continue reading]

A Gentle Reminder To Invest Your Tax Refund Wisely

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A sudden influx of cash ahs the tendency to get us giddy, but that doesn’t mean that you have to necessarily be gleeful about it. The truth is that your tax refund is money that was yours all along. It was given to a government for their purposes, … [Continue reading]

Major Corporations Corruptly Minimizing their Tax Obligations

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While tax costs are significantly high in the United Kingdom, we all have to pay our taxes, whether we like it or not. Furthermore, even though it is the individuals and businesses which earn the most that form the makeup of the highest tax brackets, … [Continue reading]

Why do ISA’s help with your tax

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If you pay tax, then you will probably not be happy about it! Most people pay tax on money they earn and money they spend on certain things and that can feel really bad. People ate having to give away their money to the government. Obviously taxes … [Continue reading]

Equipment Costs: IT Contractors

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IT contractors require a huge amount of equipment in order to complete their job successfully. If you do not have the right equipment, you might find that you’re unable to take on jobs, which could mean prospective clients go to your competitors … [Continue reading]