Lifetime ISA

eskbanker

6022tivo wrote: »

I think I now understand.

So my Halifax HTB Isa I have been paying £200 a month in for the last 11 months sine April 2017 £2200.

I have just transferred it to Skipton (total of about £5k) so does this mean I can pay only a further £1800 in before the end of this month?

The interest you earned on the HTB during 2017/18 also counts towards the £4K annual LISA allowance so should be deducted from that £1800. I believe that somewhere on Skipton's online banking it shows the remaining allowance but can't speak from direct experience....

diggingdude

Sorry to jump in on someone else's thread but it is related. I am currently waiting for the transfer from HTB to LISA to take place so that I can top up before end of tax year. Due to a serious car accident I won't be buying until say june 2019. Forgetting next years contribution which is sitting in savings accoungt, could i pay in £4000 April 20th say 2019 and claim the full bonus for that year. I think I can but it sounds too good to be true.

Once again sorry for jumping on a thread

sully1311

ValiantSon wrote: »

I hope that this is a typing error. You can only subscribe to one LISA in any tax year. If you have opened two in January and paid into two this year then you are in breach of the rules and HMRC will be in touch.

Not a typo. My girlfriend has also opened a Lifetime ISA.

ValiantSon

sully1311 wrote: »

Not a typo. My girlfriend has also opened a Lifetime ISA.

I'm puzzled by your reply. Are you now saying that you haven't actually paid in to two LISAs yourself, but rather that you have paid in to one that is in your name and your girlfriend has paid in to another that is in her name? If it is, then that isn't what you initially wrote:

sully1311 wrote: »

Yep, I opened up 2 Lifetime ISAs in January and put the max in straight away.

If it now turns out that actually you have one LISA and your girlfriend also has a LISA then that is completely different.

peanuts92

Hello,

I'm confused about what i've read on this forum and what i've read in the T&Cs of Skipton's LISA regarding when the bonus for the second year (tax year 18/19) will be paid out?

To quote Skipton's Online Cash Lifetime ISA T&Cs:
"G - When is the 25% bonus paid into my account?
We will claim the 25% bonus from HMRC on your behalf. For the 2017/18 tax year, HMRC will pay the bonus within 28 days of 6 April 2018. From the 2018/19 tax year onwards, HMRC will pay the bonus based on the contributions you have made each month. This will be paid by HMRC within 4-9 weeks. The bonus is paid on all contributions you make before you reach the age of 50."

So regarding the tax year 2018-19, some people have said that you can simple wait until just before the end of the next tax year and deposit your second chunk of £4000 in lets say March 2019 and still get the full £1000 bonus. But surely this wouldn't work as the bonus is paid monthly for the second year?

I've got a Skipton Cash LISA and am planning to deposit £4000 at the end of this month for this tax year 17-18. But am unsure of when to deposit the next chunk of £4000 for the next tax year 18-19? So does it make a difference if i make my second deposit at the start or end of the next tax year 18-19?

Sorry i'm getting confused here

Alexland

peanuts92 wrote: »

So regarding the tax year 2018-19, some people have said that you can simple wait until just before the end of the next tax year and deposit your second chunk of £4000 in lets say March 2019 and still get the full £1000 bonus. But surely this wouldn't work as the bonus is paid monthly for the second year?

It would work - you would get a zero bonus each month until after the contribution. So if you waited until towards the end of the next tax year you would get your associated monthly bonus shortly after the start of the subsequent tax year.

Alex

6022tivo

Make the full deposit at the end. Get the interest from somewhere else in the meantime.

ValiantSon

It doesn't matter when you deposit the funds, the bonus will be paid on the balance deposited following the end of each month. If you pay in c.£333.33 every month you will get c.£83.33 bonus each month, but if you pay in £4,000 in April 2019, you will get £1,000 following the end of the tax year. It amounts to the same thing.

The possible advantage of waiting until near the end of the tax year is that you can benefit from a higher interest rate on that money in a different account.

peanuts92

Thanks guys! :T

GM1880

I've just switched by Help to Buy ISA with Barclays to Skipton's Lifetime ISA, the form I had to send off asked me to confirm I wanted them to instruct Barclays to close their ISA once the funds were transferred, which I did. I put in the additional £1900 or so into the lifetime ISA to take it up to the £4000 max. That's now showing in the Skipton ISA, but by Barclays ISA has now been closed, but no signs of the £2100 or so from that ISA in my Skipton one.

Presumably it does take a little time to transfer, but no reference to that in the small print. Ought I be concerned?