Saving up money

GeCon

Lokolo wrote: »

I don't but only because I don't pay tax, I will after this tax year though as I have paid some. But obviously when I go into a career I will.

So is it compulsory? Where would I find some information?

Lokolo

Don't think its compulsory but I think it is preferred.

mister_bojangles

Techno says: you can have £3600 every year (or until the Gov stop it) but if you withdraw you can't put it back in.

Does this mean that if you transfer ISA savings of £5000 from another acct into a current ISA; and withdraw £4000, you've lost the opportunity of paying in any money that tax year?

JoeA81

GeCon wrote: »

So is it compulsory? Where would I find some information?

If your only source of income is through your employer, then your tax will be automatically deducted from your pay through the PAYE system.

If you dont earn anything other than this, then there is no need to fill in a tax return as you have no other income to declare.

If you do have another souce of income then it needs to be taxed, and you need to inform HMRC through a tax return form so they can tax you on that income.

debbie42

When I worked, I used to fill out a tax return even though I was on PAYE, as I claimed for a personal pension contribution and a trade allowance. This affected my tax code.

LittleVoice

mister_bojangles wrote: »

Techno says: you can have £3600 every year (or until the Gov stop it) but if you withdraw you can't put it back in.

Does this mean that if you transfer ISA savings of £5000 from another acct into a current ISA; and withdraw £4000, you've lost the opportunity of paying in any money that tax year?

If the £4K is from previous years, you can't replace it if you take it out of an ISA. However, it is not counted as taking out any of your current year's subscription, so you can still put in money for the current year up to the £3.6K allowance.

debbie42

If I transferred, say, 10K then put in a new lot of £2K, then withdrew 1K would that come from this year's allowance?

I'd guess yes, but I'd never thought of the timing of old funds with new funds and withdrawals before. Anyone know for sure?

Baldur

debbie42 wrote: »

If I transferred, say, 10K then put in a new lot of £2K, then withdrew 1K would that come from this year's allowance?

I'd guess yes, but I'd never thought of the timing of old funds with new funds and withdrawals before. Anyone know for sure?

I've never withdrawn any funds since ISAs started but logically I would think that you should be able to specify whether you wish to withdraw from your previous years' transferred funds or current year's funds, as the ISA manager would have to document this for HMRC audit purposes.