Isa deadline: How to make the most of your 2015-16 tax allowance

You have until midnight on Tuesday 5 April to make your tax-free investment

Simon Read
Friday 25 March 2016 22:58 GMT
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You can save up to £15,240 into an Isa in the current tax year
You can save up to £15,240 into an Isa in the current tax year (Rex)

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Ah, is the end of the tax year approaching?

Yes. And it means you have until midnight on Tuesday 5 April to make the most of your 2015-16 tax allowance.

There's no rush is there? I can simply do it online at the last minute

People do that. Despite having the whole of the financial year to add to their tax-free savings, many leave it to the very last minute. "We saw the final Isa subscription last year come in at 11.54pm, just six minutes ahead of the new tax year," said Jason Hollands, managing director of Tilney Bestinvest.

But that's not a good idea?

You'll be fine as long as your laptop or PC doesn't crash and your broadband holds up. If that's the case, you'll be able to make your tax-free investment at a couple of minutes to midnight if you want. But any problems could mean not using your allowance.

What is my allowance?

You can put up to £15,240 into an Isa in the current tax year. And if you're part of a couple, your partner can do too – in other words, you could lock away more than £30,000 in tax-free savings in the next couple of weeks. Then again you have another, similar allowance starting on 6 April. Investing early in the new tax year will give your investments a headstart and avoid the potential misery of rushing to meet the deadline next year.

If I'm going to do this online, what information will I need to have to hand to open an Isa?

Opening an Isa online can take just five minutes – as long as you have planned ahead and have all the information you need.When investing in Isas, you'll need your national insurance number. If you can't remember it, you can either find it in correspondence from the taxman or get it from your company payroll department.On top of that, you'll need to have sufficient cleared funds in your bank account to make the payment. You can't use a credit card to fund an Isa and the payment must come from the British bank or building society account of the person applying.

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