Have I been missold benefits of ISA?

Larsony01

I've just got an ISA from the Abbey.

One of the benefits the guy in there sold me on was the fact that, aside from not having to pay tax on the interest I accumulate from it, I am allowed to place in there up to £3,000 of money I would otherwise have to put aside for tax as a self-employed person.

Basically, he said, if it turned out that the money I earned in one tax year led to my tax bill being £3,000 or under, I would not have to pay tax.

I even asked him whether this simply applied to income tax, not national insurance but he was convinced it doen't matter.

This can't be right surely! Can anyone help?

grumbler

Larsony01 wrote:

Basically, he said, if it turned out that the money I earned in one tax year led to my tax bill being £3,000 or under, I would not have to pay tax.

I even asked him whether this simply applied to income tax, not national insurance but he was convinced it doen't matter.

This is rubbish. Only interest generated by ISA is tax-free. The amount saved is not.

However, I don't think that you were 'missold' as in fact you have not bought anything and have not lost anything. You were misadvised. Nowadays at least 75% of branch staff are absolutely incompetent.

Lorian

Larsony01 wrote:

I even asked him whether this simply applied to income tax, not national insurance but he was convinced it doen't matter.

I think I'd go see his boss. "professionals" shouldn't be giving advice like this.

regularsaver1

grumbler, not everyone is
but i agree the training is not always there to support them

grumbler

regularsaver1 wrote:

but i agree the training is not always there to support them

The only training they need is in reading skills. I don't work for a bank, finances are not my profession, but I know more about their products without any training.

ManAtHome

With you on that one Grumbler - it's diabolical that people with (allegedly) the intelligence to advise people on their finances either can't read or can't ask questions of their employers.

Who's going to pay the OP's fine+interest when the IR duff him/her up?

regularsaver1

i work in branch and i'd say i'm one of your 25% then

meanmachine_2

The problem is that most cashiers / bank staff seem to be paid atrociously.

You pay minimum wage you get maximum numbskulls.

And to the OP, no mate. You weren't missold anything. I'd go back in and complain, however.