2018/2019 LISA Bonus Timing?

marmitemum

My daughter and son in law took out LISAs last year and have received their 2017/2018 bonus. They each paid in a further £4K on 31st May - on what date are they likely to receive their 2018/2019 bonus? (They have just made an offer on a house so need to know the likely timing so that they can plan the completion date)

bowlhead99

marmitemum wrote: »

They have just made an offer on a house so need to know the likely timing so that they can plan the completion date)

The speed at which the bonus will arrive in their account will depend on the date that the bank makes its report of bonus claims each month and the time taken by HMRC to send the bonus and for it to be applied to the account.

Their bank/building society or investment firm operating the LISA will be able to tell them when this will be completed by, for subscriptions made on 31 May. So if it's important for them to know the timing, it would make sense for them to simply ask the LISA manager (rather than get their mum to ask a forum)

eskbanker

While bowlhead99 is right, it wouldn't be unreasonable to expect payment of the bonus to be around the end of this month or perhaps early July.

Bonuses are earned in periods from the 6th of one month to the 5th of the next, after which the ISA manager has 14 days to claim and the government agency has a further 14 days to pay, so the generic answer is "within 28 days of 5 June", i.e. by 3 July.

Given the monthly cycles, the date is likely to be close to two months after the previous bonus was paid, but as above, if they want something more accurate or definitive than that, then they should contact the LISA provider....

marmitemum

They did not ask me to ask here, they do not know I am asking. There is a lot to grasp with buying a house nowadays, especially for a couple only married a month and needing to change location for work end of August, and my husband and I want to be in an informed position if they come to us with questions.

marmitemum

Thank you very much for your reply eskbanker. It is a Skipton LISA and I was really just asking if others had seen a pattern to their paying out. They want to complete mid August and I just wanted to make sure that the bonus would be paid out in time - though presumably their solicitor has to request release of funds some time before that. Do you happen to know how long that process tends to take?

eskbanker

marmitemum wrote: »

Thank you very much for your reply eskbanker. It is a Skipton LISA and I was really just asking if others had seen a pattern to their paying out. They want to complete mid August and I just wanted to make sure that the bonus would be paid out in time - though presumably their solicitor has to request release of funds some time before that. Do you happen to know how long that process tends to take?

See https://www.skipton.co.uk/mortgages/first-time-buyers/using-your-lifetime-isa, which explains the process, including the (up to) 30 day period between submission of properly-completed paperwork to Skipton and release of funds.

marmitemum

Thank you for the link eskbanker.

marmitemum

The website says the government bonus is "paid into your account within 14 days of the 20th day of month two." They put in £4K each on 31st May so just trying to work out how Skipton calculate their months!

eskbanker

marmitemum wrote: »

The website says the government bonus is "paid into your account within 14 days of the 20th day of month two." They put in £4K each on 31st May so just trying to work out how Skipton calculate their months!

The bonus periods are as per my earlier post #3, which Skipton echo immediately before the bit you're quoting, although I agree that their reference to 'month two' isn't as clear as it should be.

So, a payment on 31 May falls into the bonus-earning period from 6 May to 5 June, and Skipton will claim the bonus by 19/20 June and it'll be paid within 14 days from then....

marmitemum

Thanks for your help and patience eskbanker!

cjv

My payment into my Skipton LISA was made on 1/05/18 and I received the HMRC Bonus on 29/05/18, so I assume your daughters bonus will be paid around the same time of the month 29th June.