ISA timing alert

Baldur

Lokolo wrote: »

I suspect if you deposit by debit card, similar to Egg, it will get credited straight away.

As you say, that certainly happens with Egg but I wouldn't want to assume that the same applies to M&S without checking with them first.

ACID

sorry new to this but this threa is alerting to us to when to put in the full amoutn prior to tax year otherwise the full year interest wont be incurred?

that correct?

Baldur

ACID wrote: »

sorry new to this but this threa is alerting to us to when to put in the full amoutn prior to tax year otherwise the full year interest wont be incurred?
that correct?

Alerting those who haven't yet used their 2009/10 allowance, as it will be lost forever after 5th April - so the potential ongoing tax-free interest (while the ISA scheme exists) will be lost.

Mikeyorks

Baldur wrote: »

If the cash actually hits the account after 5th April, I suspect that it would count as a 2010/11 subscription, irrespective of when the instruction is given.

To my surprise ........ HMRC guidance disagrees with you (and with my reply ... had I made one! ) As it's the date the Debit / Credit card is authorised.

But personally I wouldn't risk that ..... as how many ISA providers are aware of the oddities relating to Cards and SO

The date of subscription is
• by cheque – the date on which the cheque is received and accepted by the ISA manager
• by direct debit – the date on which the ISA manager is authorised to draw on the direct debit, provided that the cash transfer takes place in due course. If that date is earlier than the date on which the direct debit mandate is received and accepted by the ISA manager the date of subscription is the later date
• by debit card, charge card or credit card – the date on which authorisation is given by the investor,
• by standing order – the date on which the first payment under the standing order is due, provided that the cash transfer takes place in due course. If the date is earlier than the date on which the standing order instruction is received and accepted by the ISA manager, the date of subscription is the later date, and
• by telegraphic transfer – if the investor instructs the manager to transfer funds, the date on which the instruction is received and accepted by the ISA manager, provided that the cash transfer takes place in due course. If the investor transfers the funds directly, the date on which the subscribed funds are received by the ISA manager.

Baldur

Mikeyorks wrote: »

...personally I wouldn't risk that ..... as how many ISA providers are aware of the oddities relating to Cards and SO

I agree, trying to redress such an issue right on the cusp of the new tax year conjures up visions of a potentially horrendous scenario of letters, phone calls and general frustration.

Mikeyorks

Yes. I have several ISAs (self + OH) maturing in the next few weeks. Without exception the maturity dates are different (by up to 5 days) despite the payments having been made on the same days some 4/5 years ago. All down to Halifax incongruities around the 6th April and money appearing in ISAs and then disappearing into the ether. Strangely the OH has always benefitted ..... albeit I did get a bit of (out of ISA) compensation one particularly frustrating year!
Taught me to stay away from the immediate vicinity of the 6th ..... and these were all very straightforward new fixed rate accounts. So anything esoteric is definitely best avoided.

rose01

Hello

I have just put in this year's £3,600 into my existing cash isa.

Would you say there is still enough time to open a shares isa for this tax year with a) my existing bank (HSBC) or b) another provider?

Thanks.

dragonbear

you can still open an isa on saturday 3 april - and pay a cheque in and this will be counted as a payment in the 2009/2010 tax year - the cheque does not have to clear. However if the cheque bounces then you will not be able to pay any money back in to the account

i am a bank manager so can confirm this is correct
hope this helps

aurion22

When will there be any info about the rates for ISAs for the coming tax year? Everything I've seen so far is just urging people to put their money in at the last minute. Isn't it better to put cash in for the whole year?
:-)

rb10

Most of the accounts that are available now will simply continue into the new tax year.

Keep an eye on the first post of this thread: http://forums.moneysavingexpert.com/showthread.html?t=401374