ISA timing alert

aurion22

rb10 wrote: »

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

Thanks, rb10.
I was hoping for advance info on the new rates. Isn't it better to have an ISA for the full year? I've just retired and need all the interest I can get before HMRC want their share.
:-)

Phargus

Read with interest as I made a direct debit instruction online from bank account to new A&L cash isa on 31 March (requested from A&L site). Money not gone in yet but bank statement shows it deducted from my balance with a transaction date of 6 April. Does this mean it will count for 2009/10 allowance - this is my reading of what others have said.

If not, should I be able to cancel the DD and try to use the allowance with another online provider?

Ta

david78

It will count as next years allowance if the transaction date on your account is 6 April.

Is it a Direct Debit or a Standing Order? You might want to cancel it and pay your 2009/2010 money somewhere else.

Phargus

From MikeYork above:
"The date of subscription is
...
• 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 "

Thanks David but not sure how that stacks against Mike's post above. Direct Debit was set up mid March and instruction to draw on direct debit (at least I assume that's what I did) was made on A&L site on 31 March. However, not expecting money to enter account until 6 April.

Grateful for a third opinion!

Phargus

Phargus

Went fishing on HMRC website which gives 2 almost helpful examples:

"Mr Philips submits a direct debit authorisation to his ISA manager in March 2008.
The ISA manager is authorised to draw £100 on the 10th of each month as a
subscription to Mr Philip’s ISA, starting on 10th April 2008. Despite the
authorisation being received in the tax year 2007-2008, the ISA subscriptions are
made in 2008-2009.

On 1st April 2009 Mr Philips sends another direct debit authorisation to his ISA
manager for a single lump sum subscription of £3,000, to be drawn on 1st April
2009. The ISA manager only receives this on 7th April 2009, and so the

subscription cannot be made for 2008-2009."

My case is similar to 2nd point but I don't know if the reason that "the subscription cannot be made for 2008-2009" is because the ISA manager didn't get the DD authorisation until 7 April or because ISA manager didn't get money until 7 April, or indeed both. Or does point 2 follow on from point 1 and poor old Mr Philips has already put ~£1200 in his ISA via his monthly DD and so can't put a lump sum in for £3K in the same year.

Any ISA managers out there, or is Mr Philips himself reading??

I fear a trip to the A&L may be called for in the morning.

Ta

Squish_21

Filled mine just in time!