ISA tax year is coming up

toby3210

I have used up £15k of my ISA this year. With the tax year end around the corner, is it worth putting £5k on my credit card to fill the remainder and pay off £1.5k for next 3-4 months? When I say put on credit card I mean putting my salary straight into the ISA for February and March then living off credit card. I love the tax advantage of ISA and in the long term (decades) I reckon the benefits will far outweigh the interest of the debt in the short term. What do you think? 

eskbanker

The tax shelter is useful but it's not the be all and end all, so it might be worth shuffling funds around if you wouldn't incur interest and you'd be reasonably confident that you'd be using all of your 2025/26 ISA allowance.

If you're literally talking decades then you might find that a pension is a better wrapper to use....

jimjames

toby3210 said:

I have used up £15k of my ISA this year. With the tax year end around the corner, is it worth putting £5k on my credit card to fill the remainder and pay off £1.5k for next 3-4 months? When I say put on credit card I mean putting my salary straight into the ISA for February and March then living off credit card. I love the tax advantage of ISA and in the long term (decades) I reckon the benefits will far outweigh the interest of the debt in the short term. What do you think? 

If you don't have the £5k now it seems crazy to borrow the money at credit card rates when you'll have £20k allowance as of April. I assume you're using a S&S ISA if you're planning for it to be used in decades?

poseidon1

jimjames said:

toby3210 said:

I have used up £15k of my ISA this year. With the tax year end around the corner, is it worth putting £5k on my credit card to fill the remainder and pay off £1.5k for next 3-4 months? When I say put on credit card I mean putting my salary straight into the ISA for February and March then living off credit card. I love the tax advantage of ISA and in the long term (decades) I reckon the benefits will far outweigh the interest of the debt in the short term. What do you think? 

If you don't have the £5k now it seems crazy to borrow the money at credit card rates when you'll have £20k allowance as of April. I assume you're using a S&S ISA if you're planning for it to be used in decades?

Have to agree.

However, out the blue Sainsbury are offering 1 year interest free cash advance on my credit card with 0% fee ( most unusual for them). 

Seemed rude to refuse the £10k on offer and earn a nice risk free 4.55% return at their expense  😏 

Of course will be promptly paying back before credit card interest accrues next year.

400ixl

So you have enough in your non ISA savings accounts that you will be paying tax on any additional non ISA savings, and you will be intending to use your full £20K allowance next year.

If either is no, then why would you want to take on debt that is not necessary?

jimjames

poseidon1 said:

jimjames said:

toby3210 said:

I have used up £15k of my ISA this year. With the tax year end around the corner, is it worth putting £5k on my credit card to fill the remainder and pay off £1.5k for next 3-4 months? When I say put on credit card I mean putting my salary straight into the ISA for February and March then living off credit card. I love the tax advantage of ISA and in the long term (decades) I reckon the benefits will far outweigh the interest of the debt in the short term. What do you think? 

If you don't have the £5k now it seems crazy to borrow the money at credit card rates when you'll have £20k allowance as of April. I assume you're using a S&S ISA if you're planning for it to be used in decades?

However, out the blue Sainsbury are offering 1 year interest free cash advance on my credit card with 0% fee ( most unusual for them). 

Seemed rude to refuse the £10k on offer and earn a nice risk free 4.55% return at their expense  😏 

Of course will be promptly paying back before credit card interest accrues next year.

I have done exactly the same with my Sainsburys card, like you say £10k for 12 months is too good to miss. Seems very odd that Sainsburys have suddenly become very flush and generous with their money. I wonder if there is any connection with the sale of the business to NatWest!

toby3210

To be clear, I will be filling my £20k ISA next year

toby3210

And yes it's a S&S

poseidon1

jimjames said:

poseidon1 said:

jimjames said:

toby3210 said:

I have used up £15k of my ISA this year. With the tax year end around the corner, is it worth putting £5k on my credit card to fill the remainder and pay off £1.5k for next 3-4 months? When I say put on credit card I mean putting my salary straight into the ISA for February and March then living off credit card. I love the tax advantage of ISA and in the long term (decades) I reckon the benefits will far outweigh the interest of the debt in the short term. What do you think? 

If you don't have the £5k now it seems crazy to borrow the money at credit card rates when you'll have £20k allowance as of April. I assume you're using a S&S ISA if you're planning for it to be used in decades?

However, out the blue Sainsbury are offering 1 year interest free cash advance on my credit card with 0% fee ( most unusual for them). 

Seemed rude to refuse the £10k on offer and earn a nice risk free 4.55% return at their expense  😏 

Of course will be promptly paying back before credit card interest accrues next year.

I have done exactly the same with my Sainsburys card, like you say £10k for 12 months is too good to miss. Seems very odd that Sainsburys have suddenly become very flush and generous with their money. I wonder if there is any connection with the sale of the business to NatWest!

I suspect its Nat West's money, since confirmation  of their ownership should be green lit  by  May, it would be presumptuous of Sainsburys to eat into Nat west's profits  so near to completing the sale.

I note in passing Nat West  is also offering 1 year (fee free ) balance transfers but no mention  of similar cash advance terms. I suppose it would be greedy to try and get a 2nd drink at the Nat West well 😅 

PRAISETHESUN

toby3210 said:

And yes it's a S&S

I'd be wary about stoozing a 0% credit card in an an investment account. If markets were to crash and you ended up with less money then you put in, how do you intend to pay it off?

Growingold

jimjames said:

poseidon1 said:

jimjames said:

toby3210 said:

I have used up £15k of my ISA this year. With the tax year end around the corner, is it worth putting £5k on my credit card to fill the remainder and pay off £1.5k for next 3-4 months? When I say put on credit card I mean putting my salary straight into the ISA for February and March then living off credit card. I love the tax advantage of ISA and in the long term (decades) I reckon the benefits will far outweigh the interest of the debt in the short term. What do you think? 

If you don't have the £5k now it seems crazy to borrow the money at credit card rates when you'll have £20k allowance as of April. I assume you're using a S&S ISA if you're planning for it to be used in decades?

However, out the blue Sainsbury are offering 1 year interest free cash advance on my credit card with 0% fee ( most unusual for them). 

Seemed rude to refuse the £10k on offer and earn a nice risk free 4.55% return at their expense  😏 

Of course will be promptly paying back before credit card interest accrues next year.

I have done exactly the same with my Sainsburys card, like you say £10k for 12 months is too good to miss. Seems very odd that Sainsburys have suddenly become very flush and generous with their money. I wonder if there is any connection with the sale of the business to NatWest!

Just a note to say the offer from Sainsburys quotes both BT and MT.  However with a previous BT to Sainsbury they showed it as a cash advance with the Credit agencies.  Talked to them til blue in the face but they never got the point that a BT should be shown as a BT to the credit agencies and not a MT.  Showed as a BT on my Sainsburys statement .  Was just the way they reported it.