Stock Shares ISA - Investment AVC’s ???

SeekingYes

Hey All, First time poster and long term reader of MSE.

I am looking at starting à stocks and shares ISA which will be paid into monthly and would look like to be able to deal in funds and also individual shares. So far I have been looking at the below companies, any advice on what would be cheaper for me as I’ve read so many now my brain is fried. Using comparefundplatforms.com just confused me even more as it put Willis Owen cheaper than iWeb and I don’t see how.

iWeb, cavendish online, X-O, Willis Owen,

Also, am I right in thinking that paying some AVC’s into my work pension would be the prioriy over the above?

I pay the max into my pension the company will match which is 6% each

I am 35 homeowner 27 years left on mortgage, 10k in Marcus savings and 10k premium bonds.
I am just under the higher rate tax band, 9k of which is non-pensionable shift payment, but I regularly go in the higher tax band with overtime.

So do you think an S&S isa is a good idea or have any other advice. It’s all so confusing.
Thanks All

Aylesbury_Duck

I'm far from an expert in investing but my first thought would be that with a long mortgage commitment and "only" £20k in accessible savings, you don't quite have enough to begin locking money away for 10+ years, which is what you need to be comfortable doing when investing.

How long would that £20k last if you (both?) lost your jobs tomorrow and couldn't work?

Tom99

Given just the information in your OP I would say the order of priority should be:

1 - Pension for the amount of earnings you would otherwise expect to pay 40% tax on. So if you expect £5,000 to be taxable at 40% this tax year you pay a net £4,000 into the pension and claim another £1,000 in tax back from HMRC. It may work slightly differently if your AVC is taken direct from gross pay. You will get a net £142 back for every £100 you put in if you are a 20% tax payer in retirement.
2 - A S&S LISA. Also effectively a pension at age 60. You will get £125 out for every £100 you put in. There is no tax when you take the money out after age 60.
3 - Next more money in your pension. £100 in will be grossed up to £125 but only 25% is tax free when you take it out so £106.25 for every £100 you put in.
4 - Lastly a S&S ISA. You get £100 back for every £100 you put in but any capital growth or income is tax free whilst the money is in the ISA.

Other considerations such as needing the money before age 57-60 might alter the above priority. One 'advantage' of the LISA over a pension is you can access it early with a 25% penalty if you unexpectedly needed the money, so you would get back £93.75 for every £100 put in.