Grandparent’s payment into JISA, via me - a problem?

My mother pays £500 every month into a JISA for my child for which I’m obviously very grateful. 

The JISA is with Vanguard. They only allow payments from one source, so as I opened it, my mother pays the amount to me and then I pay the exact same amount into the JISA. 

I remember when I set it up being struck by the fact that Vanguard didn’t allow payments directly from grandparents (previously we’d been with Nutmeg, who do). This is why it is set up this way. But I’m now worrying that this arrangement might have tax implications for me or my mother. Grateful for any views. 

Comments

  • xylophone
    xylophone Posts: 43,864
    Name Dropper First Anniversary First Post
    Forumite
    But I’m now worrying that this arrangement might have tax implications for me or my mother. Grateful for any views. 
    Vanguard didn’t allow payments directly from grandparents 


    Just keep  a copy of the VANGUARD T&CS and an audit trail - in effect, this is as simple as keeping the bank statements which show the transfer of the monthly £500 from your mother to your bank and the immediate transfer on from your bank to the JISA.
  • Vanguard do allow other people to pay into an JISA, we do that every birthday for our three grandchildren. You have to do it using a debit card but you can do it.

    https://secure.vanguardinvestor.co.uk/en-gb/Public/process/gift/home/register/giftdetails

  • Vanguard do allow other people to pay into an JISA, we do that every birthday for our three grandchildren. You have to do it using a debit card but you can do it.

    https://secure.vanguardinvestor.co.uk/en-gb/Public/process/gift/home/register/giftdetails

    Yes that is right - they allow one off payments but not regular payments. So if someone wants to pay the same amount each month they would have to remember to do that each month. My mother wasn’t keen on this, hence the arrangement we have. If there are negative tax implications we could move to an annual payment but I’d always preferred a drip drip approach to the investments. 
  • xylophone
    xylophone Posts: 43,864
    Name Dropper First Anniversary First Post
    Forumite
    edited 19 October 2023 at 6:01PM
    If there are negative tax implications 

    There are no negative tax implications - if it would make you feel more comfortable, have your mother write you a letter - 

    Dear John, 

    I would like to make a regular monthly gift of £500 to Jane's Junior ISA account. 

     I understand that Vanguard Investments do not permit me to do this  via a direct regular SO.  

    In the circumstances, I have arranged a  monthly standing order for  £500 from my bank account to yours for onward transmission to the JISA.


Meet your Ambassadors

Categories

  • All Categories
  • 341.8K Banking & Borrowing
  • 249.7K Reduce Debt & Boost Income
  • 449.2K Spending & Discounts
  • 233.9K Work, Benefits & Business
  • 606.1K Mortgages, Homes & Bills
  • 172.5K Life & Family
  • 246.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards