ISA allowance - equal monthly payments

Chirpy_Cheep_Cheep

Hello all,

My first post here...

So the ISA annual allowance is £20k per annum which if one tries to make exact monthly payments to meet that, doesn't work out exactly. 20,000 divided by 12 isn't exact to the penny because it's 1666.66666. Does anyone know if I set a monthly contribution rounded up of 1,666.67 and that comes to 20,000.04 per annum, whether there are any flags or bogeymen that jump out at you demanding tax on the 4p oversubscription? I'm more curious for convenience sake than anything else!

Vortigern

I don't know whether HMRC will chase you for 4p but the solution to your problem is to make the first standing order payment different fron the others. Banks usually cater for this.

...or just make 12 payments of £1,666.66

TrustyOven

Pay in £20.00 manually in one of the months, and setup 12 monthly payments of £1665.00


(A spreadsheet like LibreOffice is wonderful for playing with numers like this)

Alexland

If you exceed the annual allowance with the same provider they may automatically return your full 12th contribution back as rejected and by the time you notice it might be too late to make a final contribution to get to the £20k. Certainly we know of some Skipton forum members who have had this problem with their £4k LISAs.

Ultimately why be difficult - if you really want to spread across 12 equal monthly payments just under-contribute by a few pennies.

Alex

Chirpy_Cheep_Cheep

Thank you all! I've come to agree totally - why be difficult - just set and and forget is the way forward

Thanks again!

capital0ne

Of course the best solution is to just pay in £20k and invest it, why waste time! Everyone knows its time in the market and not timing the market.

And research has shown that even investing lump sums just before a crash is better than drip feeding.

Of course you may not have the odd £20k handy for paying in the full allowance, but some of us do.

Alexland

I just ate all my breakfasts for next week in one efficient go. Anything else would have been a complete waste of my time.

Aegis

Alexland wrote: »

I just ate all my breakfasts for next week in one efficient go. Anything else would have been a complete waste of my time.

Not everyone's got the stomach capacity to eat a week's worth of breakfasts in a single sitting, but some of us do!