some advice please

glitterygert

I am on incapacity benefit and DLA, both at lower rate. Am I allowed to have an ISA, would I have to pay income tax on this, and does anyone know how much you need to open and ISA, and what is the most you can put in it in one year.


Many thanks

Glittery

Nigella_2

You are allowed to deposit up to £3600 into one cash Isa only, in any one tax year.

There are accounts that you can open with £1 and drop in ££ as you go along, once you withdraw the ££ you can't reinvest it again. I.E. investment £3600, Withdraw total of £600. You can't put in any other monies. Your balance remains at £3000 for that year.


The ISA Interest paid is free of tax.

glitterygert

Thanks for that information, but I would like to know if it will affect my ib benefit or DLA. and should I inform them if I do this.

Can anyone explain what "means tested ", means

thanks


Glittery

healy

glitterygert wrote: »

Thanks for that information, but I would like to know if it will affect my ib benefit or DLA. and should I inform them if I do this.

Can anyone explain what "means tested ", means

thanks


Glittery

IB and DLA are not means tested so you can have any amount of savings. You do not need to inform the DWP if you have an ISA.

"Means tested" benefits are benefits that are affected by your income/capital such as Income Support.

glitterygert

thank you so much