Lifetime ISAs guide

System

Somerset_La_La_La wrote: »

Just got the following from Skipton:



Will be interesting to see the payment dates for the bonus in future months. E.g. will they wait for the funds from HMRC, or will they just credit before they get the funds. I assume the former, especially if interest rates rise!

Where did you receive this notification ? Just wondering if that date will be Universal across all accounts or is specific to yourself ...? Thanks in advance


Edit: nevermind; received the email myself this morning!

Alexland

I very much doubt that Skipton will prefund the bonus in advance of receiving the HMRC payment.

Ed-1

Alexland wrote: »

I very much doubt that Skipton will prefund the bonus in advance of receiving the HMRC payment.

A lot of pension companies do with tax relief.

Alexland

Ed-1 wrote: »

A lot of pension companies do with tax relief.

Some do but many don't.

[Deleted User]

Sorry, yes the way I read it was generic rather than personal to me - glad others have had the same email!

RE: Pre-funding - I doubt it too, but hopeful! At just 0.75% it could be a good "customer service"/marketing gimmick to keep people - "we pay your bonus (say) 2 working days after month end, you can wait up to X weeks elsewhere".

Surely more Cash LISAs will launch in the coming tax year!?!?!

deutsch

deutsch wrote: »

Going from Halifax HTB to AJ Bell LISA.
Forms sent 27th Feb in post.
Acknowledgement received from AJ Bell 1st March.
Hopefully AJ Bell can make contact with Halifax and there are no delays. I would be gutted if I don't get the extra £1000+ from the government for 2016/17's HTB transfer in LISA.
Anyone actually done a transfer from HTB to a LISA and confirm how long it takes?

Just an update...
My Halifax ISA says an transfer out of £4530 has been done today.
I've checked my AJ Bell account and it's not there yet, though I did read somewhere the AJ Bell aimed for transfers for today (19th).
I expect it to clear soon.

Please note the £4530 INCLUDES the interest.
If it didn't include interest, it was £4492.16. I estimated and added the pro-rata'd interest.

The HTB Halifax ISA is also still open and I will just continue with the 3.5% interest / £200 deposit per month as a regular saver until either I buy a house with the LISA (and withdraw the HTB cash or whenever the HTB ISA ends as most decent regular savers expire in 12 months).

I'm probably going to invest the funds in Lloyds shares in the LISA, a risk I'm willing to take

Further update to this, funds appeared today. Out of Halifax 19th, in 21st for AJ Bell

MDMD

Alexland wrote: »

I very much doubt that Skipton will prefund the bonus in advance of receiving the HMRC payment.

From the FAQs, it seems they don’t:
https://www.skipton.co.uk/savings/isas/lifetime-isa/faqs

When will the government bonus be paid to my account?
HMRC will calculate your Lifetime ISA bonus payment for the 2017/18 financial year at midnight on 5 April 2018. Your bonus will be 25% of the amount you have paid in up to the £4,000 annual Lifetime ISA allowance, plus any Help to Buy ISA funds transferred in that qualify for the bonus.

The government bonus will be added to your account on or by 4 May 2018.

From the start of the new tax year on 6 April 2018, HMRC will calculate bonus payments for your Lifetime ISA account on a month-by-month basis. Your bonus is calculated on any payments you make into your account from the 6th of the month to the 5th of the following month. Your bonus will be paid into your account within 14 days of the 20th of month two.

We will email you to let you know once your bonus has been paid into your account. The day we receive payment from HMRC, we pay it directly into your account, so you don’t lose any interest.

ciaomagre

I'm confused about the monthly bonus payments. I intend to pay £4k into my LISA on 6th April 2018. Does that mean at the end of that month I'll get 25% of that (so £1k paid straight in), or will it pay me it monthly spread out across the year (so I'd get about £83 each month for the tax year, totally up to £1k by the end of it?) I think it's the latter but wanted to double check.

SamJ35

ciaomagre wrote: »

I'm confused about the monthly bonus payments. I intend to pay £4k into my LISA on 6th April 2018. Does that mean at the end of that month I'll get 25% of that (so £1k paid straight in), or will it pay me it monthly spread out across the year (so I'd get about £83 each month for the tax year, totally up to £1k by the end of it?) I think it's the latter but wanted to double check.

Pay it 5th April (or before - not 100% sure how reliable skipton's payment processing is so there may be a delay) if you want the bonus this tax year!!

Skipton have said bonuses will be paid on or before 4 May 2018. So if £4,000 in there, the balance on 4 May 2018 should show as £5,000.

After this, bonus will be paid every month and is calculated on payments made from the 6th of the month until the 5th of the next month. The bonus will be paid within 14 days of the 20th of that 2nd month. (Effectively within 28 days)

Edit: apologies, I misunderstood original question. Other posts have solved!

ciaomagre

SamJ35 wrote: »

Pay it 5th April (or before - not 100% sure how reliable skipton's payment processing is so there may be a delay) if you want the bonus this tax year!!

Skipton have said bonuses will be paid on or before 4 May 2018. So if £4,000 in there, the balance on 4 May 2018 should show as £5,000.

After this, bonus will be paid every month and is calculated on payments made from the 6th of the month until the 5th of the next month. The bonus will be paid within 14 days of the 20th of that 2nd month. (Effectively within 28 days)

Thanks for replying, sorry I should have explained myself better. I have already paid in this year's £4k so I am expecting to get the £1k bonus or before 4 May 2018 already. On the 6th of April, I want to pay in another £4k lump sum at the start of the tax year. From that point on the bonus is paid monthly, so my question is - will that first monthly bonus payment be £1k? So basically I can expect to receive £2k for "free" at some point in May this year?