Deadline for replacing flexible ISA funds by cheque

gwapenut

If I want to replace funds withdrawn from a flexible ISA by cheque, in a branch, what is the deadline for doing so?

I understand that if I pay in on the 5th April, chqeues won't clear until later the next week (in the new tax year), but do they count towards replacing the previous tax year's flexible allowance?

masonic

You should check with the bank in question (A) whether they allow this, and (B) what their policy is. The rules around this are unclear for replacement subscriptions, but...

https://www.gov.uk/guidance/manage-isa-subscriptions-for-your-investors#cash-subscriptions

Also, 5th April is a non-working day, so cheque may well be treated as being received on the next working day.

gwapenut

There was an answer here in 2016. Of course, banks may have become less, or more, accepting of cheques since then. It also does not adress your point about the specific rules for flexible allowances.

https://www.telegraph.co.uk/money/ask-a-money-expert/ask-an-expert-will-a-cheque-paid-in-on-april-5-clear-in-time-to/

Halifax, Lloyds, NatWest and TSB said that as long as a cheque was received by the time the branch closed today it would contribute to this year’s Isa allowance.

Nationwide said it would do likewise. Cheques received by post would also be processed even if received after April 5, as long as they were accompanied by a letter of instruction.

A spokesman said: “We would always backdate to the date the cheque is dated. This will however be honoured only for seven days after April 6

eskbanker

gwapenut said:

There was an answer here in 2016. Of course, banks may have become less, or more, accepting of cheques since then.

Cheque clearance times were significantly reduced since then:

https://www.wearepay.uk/what-we-do/payment-systems/image-clearing-system/

gwapenut

I have a cashflow problem this year and am likely to lose a lot of my built up ISA allowance. 

Given the weekend timing, I have been wondering if I can replenish an ISA by cheque in branch on Saturday 5th April (without available funds), and draw out from another provider who offers truly instant access on the Sunday, in the new tax year, getting funds to my current account ready for earlier cheque clearance on the Monday. 

Cashflow will not be a problem in future years ago this level of complication is worth it to me. I just don't know if it will work.

masonic

A response from the bank to you personally relating to your specific enquiry will carry more weight than something written in a newspaper 9 years ago about new subscriptions.

gwapenut

masonic said:

A response from the bank to you personally relating to your specific enquiry will carry more weight than something written in a newspaper 9 years ago about new subscriptions.

I agree, but I've had a fair few customer advisors give incorrect information on other enquiries. Some of them seem to prefer to guess rather than lose face by asking someone else, and this is from multiple banks. 

As an example, I got several different responses from the same advisor about internal transfer limits on their savings account (nationwide), ranging from their opener of £10k all the way up to £500k. The real answer is higher than that. It is not that they mis-heard the question, but that they were careless in answering. 

A branch manager had to look up the answer, but did so without pre-guessing and showed me the text. So perhaps I am best to ask a manager in branch

born_again

gwapenut said:

I have a cashflow problem this year and am likely to lose a lot of my built up ISA allowance. 

Given the weekend timing, I have been wondering if I can replenish an ISA by cheque in branch on Saturday 5th April (without available funds), and draw out from another provider who offers truly instant access on the Sunday, in the new tax year, getting funds to my current account ready for earlier cheque clearance on the Monday. 

Cashflow will not be a problem in future years ago this level of complication is worth it to me. I just don't know if it will work.

Paying a cheque when no funds is a dangerous game. Can lead to bounced cheques given the much shorter time frames these days. 
Given you have funds in a instant access account. Why not move the money from their to you bank acc & transfer funds to the isa the week before.

It really is not worth the risk.

gwapenut

It's an instant access ISA.... So part of my allowance, robbing Peter to pay Paul!