Firm launches first corporate ISA for staff

Housebuilder Barratt today launched the UK's first company ISA for its staff.

The group has teamed up with insurer Legal & General to offer its workers access to 10 investment funds in a tax-free ISA wrapper.

The product works in the same way as any other stocks and shares ISA, with staff able to save up to £10,200 a year into it.

But it has the added benefit of lower management charges, as well as enabling staff to make contributions through payroll deductions.

Employees can contribute to the ISA on a regular basis through the payroll, or make one-off contributions as long as they are at least £200.

They can manage their money online and adjust the amount they are saving at any time.

They can also transfer money they have saved in other ISAs into the fund and make withdrawals whenever they want to, as long as at least £200 is being taken out.

Jayne Mee, people and customer experience director at Barratt Developments, said: "We are continually looking to improve the benefits and rewards we offer to our employees and that is why we are excited to be launching the first ever corporate ISA.

"They will be able to take advantage of low management fees and make payments from payroll deductions as part of this highly competitive way of saving for the future."

Tony Filbin, Legal & General's managing director of workplace savings, said: "Regular contribution company ISAs are set to revolutionise participation in company saving schemes.

"It is now possible for employers to take a huge step to drive effective workplace savings forward."