A Sheffield financial adviser is warning people not to miss out on using their tax-free savings allowance.
Jillian Thomas, of Future Life Wealth Management, says she wants to remind people that the April 5 deadline for putting money into an ISA in this tax year is fast approaching.
ISAs or Individual Savings Accounts are tax-free savings accounts, which means that, unlike regular bank or building society accounts, savers do not need to pay the government any tax on any return from the investment.
Jillian, whose company is based at Renishaw Hall, said:
“This means that they’re normally a better place to put your money than any other account, as without a tax deduction at the end, it means there is a chance your returns may well be higher.
“Even though interest rates on savings are not great at the moment, it makes sense to get the best possible return on your money.”
Each year the Government sets a limit of how much money investors can put into an ISA. For a Cash ISA it is £5,760 for the tax year ending April 5 2014.
Cash ISAs work like normal savings accounts: the money is accessible at any time and they earn a set amount of interest.
With Stocks and Shares ISAs there is no guarantee of a profit and, as with any investment involving stocks and shares, the investment may go down in value as well as up.
How much can be put in a Stocks and Shares ISA depends on how much is invested in a Cash ISA. The rule is that the total of the two for this year cannot exceed £11,520.
“It really is time to act. The deadline is fast approaching and, every year, plenty of savers miss out on this fantastic opportunity to put money away and enjoy any returns without having to give the tax man a slice.
“As always, our recommendation is to talk to your adviser about any investment you are considering, but whatever your financial advice arrangements, it’s prudent to take a close look at ISAs and make an investment before your ISA allowance comes to an end.”
Jillian is junior vice president of Sheffield Chamber of Commerce and Industry, meaning she will take the top post from 2015 to 2016, making her only the second woman president of the Chamber in its 160 year history.
Before setting up Future Life Wealth Management, Jillian worked for 12 years at a financial planning practice in Mansfield.