Last banking weekday in 2020/21 tax year is Thu 1st April

Sea_Shell

Nebulous2 said:

Consumerist said:

Nebulous2 said:

We're expecting to get enough money on Monday to fully fund an ISA for myself and my wife. Probably going with Fidelity. Any likely problems in opening an ISA  then and funding it before the end of the year? 

I would suggest opening the ISAs as soon as possible. Check the ISA's Terms to see whether you can transfer and/or add funds after the application. Some ISA managers allow transfers only at application time - not afterwards - so you may need to wait until the funds are ready to transfer at application time.

Okay I've got my money in. My wife's ISA has been held up for ID checks. We might be best to go to HL, as she already has a SIPP there, so they wont need to ID her if Fidelity aren't going to make it by the end of the financial year. 

I've opened my ISA with £20k. Fidelity have opened a cash management account for me and are inviting me to put some money in there to cover charges. Can I do that on top of my £20k? Effectively the platform charges wouldn't then come from my ISA? 

Fidelity's CMA sits outside the ISA, so yes you add extra money to it, and yes, they do take the fees from there first.

Alexland

Yes the CMA doesn't count as a contribution so paying your fees outside the wrapper is generally better for people using the whole ISA allowance.

However beware that if there is money in the CMA then Fidelity will also use it to collect their SIPP fees (if you have one with them) which doesn't seem very tax efficient compared to leaving the CMA empty and letting Fidelity automatically move the money out of the tax advantaged SIPP to pay the fees each month.

So if you have both the trick seems to be to only put enough in the CMA to pay the ISA fees as they will try and collect the ISA money before the SIPP money although I haven't tried this myself as we only have SIPPs with Fidelity.

https://www.fidelity.co.uk/cash-management-account/

Costabit

Alexland said:

However beware that if there is money in the CMA then Fidelity will also use it to collect their SIPP fees (if you have one with them) which doesn't seem very tax efficient compared to leaving the CMA empty and letting Fidelity automatically move the money out of the tax advantaged SIPP to pay the fees each month.

So if you have both the trick seems to be to only put enough in the CMA to pay the ISA fees as they will try and collect the ISA money before the SIPP money although I haven't tried this myself as we only have SIPPs with Fidelity.

This would be my ideal scenario, but I fear it is a forlorn hope. Currently I hold 1 yrs worth of fees in both my ISA and my SIPP.
Can anybody confirm if it is possible somehow  to pay the SIPP charge from within, but pay the ISA charge from without ?

Alexland

Costabit said:

This would be my ideal scenario, but I fear it is a forlorn hope.

Why do you not think this will work? Fidelity are pretty clear the sequence of accounts in which they try and collect the fees from the CMA on the above linked webpage (with ISA before SIPP). If your ISA fees are fairly predictable (e.g. £3.75 pm cap for holding ETFs etc) then maybe try putting just that amount in the CMA and see what happens when they collect their fees. Provided there is enough cash in the wrapped accounts they shouldn't sell down your holdings. Maybe phone them first to talk it through if you want to be sure?

Nebulous2

My wife logged in this morning, and the warning that she needed to wait until her ID was verified had gone. She was then able to put £20k into her ISA as well. 

No emails or messages to say that she had been approved - but still a reasonably quick process in completing the ID check in 24 hours. I suppose they are aware that people are trying to get money in before the end of the financial year. 

Consumerist

Nebulous2 said:

. . . I suppose they are aware that people are trying to get money in before the end of the financial year. 

Glad you made it ok.

No doubt they were also aware that if you couldn't deposit with them then you would be looking elsewhere.