We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Personal ISA and Income Tax?
Damian_596
Posts: 2 Newbie
Hi everyone,
I`ve searched and read a lot online and have found conflicting advice about this. My question is do you pay income tax on anything you transfer into a personal ISA if your self employed?
Ie A self employed person earns 30k profit and transfers 10k into an isa. Do you just pay tax on 20k and "ignore" the 10 put into an isa?
Seems a little too good to be true
Cheers in advance
I`ve searched and read a lot online and have found conflicting advice about this. My question is do you pay income tax on anything you transfer into a personal ISA if your self employed?
Ie A self employed person earns 30k profit and transfers 10k into an isa. Do you just pay tax on 20k and "ignore" the 10 put into an isa?
Seems a little too good to be true
Cheers in advance
0
Comments
-
No, the full profit is taxable - if you subsequently put some of it into an ISA then it's sheltered from tax on interest/dividends/growth thereafter but that doesn't affect its status prior to being paid into the ISA.1
-
I thought it seemed a little unlikely, cheers eskbanker.0
-
I`ve searched and read a lot online and have found conflicting advice about this.There should be no conflicting advice whatsoever. ISAs do not get any tax relief. They are not a business expense. There is no ability to use them to reduce your tax bill. Are you perhaps mixing ISAs up with pensions (where you do)?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.2
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards