Remember, remember the 5th of April, may not be the rhyme you recall but a rather important date for your finances.  Time to check your ISA & pension allowance 2018/19 before it’s too late.

Individual Savings Accounts (ISAs)

For the 2018-19 tax year, the maximum allowance is £20,000 for the amount of money that savers can place in an ISA.  This will also remain the same in 2019-20.  If you don’t use your annual ISA allowance before the end of each tax year, which is always on 5 April, you lose it. All UK residents aged 16 or over can have a cash ISA, although you must be 18 before you can open a stocks and shares ISA. Have you contributed into your ISA in the 2018/19 tax year?  Have you invested your ISA ethically?

Junior ISAs

Children under the age of 18 can also save cash tax-free in a Junior ISA.

In the 2018-19 tax year, the annual limit for contributions to Junior ISAs is £4,260. In 2019-20, this will increase to £4,368.

Flexible ISA withdrawals

On 6 April 2016, the government introduced a new optional flexibility for ISAs so that you can take money out and put it back later in the year, without losing any of your tax-free entitlement.

The only condition is that you top up your ISA in the same tax year the withdrawal was made. If you put it back in the next year, it will count towards your new annual allowance. This does not apply to Junior ISAs and not every ISA provider offers this facility-please check with your adviser.

Yes, there is now greater flexibility, which allows easier transfers between accounts and between moving capital from investments to cash ISAs.

Tax relief on your annual pension contributions

If you’re a UK taxpayer, in the tax year 2018-19 the standard rule is that you’ll get tax relief on pension contributions of up to 100% of your earnings or a £40,000 annual allowance, whichever is lower. The annual allowance is a limit on the amount that can be contributed to your pension each year, while still receiving tax relief. Have you contributed to your pension this year?

2019/2020 Tax Year

The State Pension will rise by 2.6% meaning those with the old State Pension will get an extra £3.25 a week and with the new State Pension will get £4.25 more a week.

The personal allowance – the amount you can earn before paying income tax – rises to £12,500 and the higher rate tax threshold goes up to £50,000.