As the Isa deadline approaches, top tips on getting invested
THE new tax year is approaching and April 5 is the last day to use the £20,000 adult Isa allowance for the current 2019/2020 tax year. From April 6, the 2020/21 tax year will start, and so will a fresh adult annual Isa allowance of £20,000.
Sarah Coles, a personal finance analyst at Hargreaves Lansdown says: “There are three golden rules to help you stay on track even when the investment world is as turbulent as it is right now: make sure you have a diverse portfolio; stick with it for the long term; and use your tax breaks – so that when we get an upturn, you’re in the best possible position to take advantage.
“If you haven’t done anything about this year’s Isa – and you tend to leave this kind of thing to the 11th hour – it’s worth taking steps to protect your allowance sooner rather than later.”
Here is Sarah’s last-minute Isa checklist:
1. Beat the rush: You only have a matter of days, but don’t leave it till the last one. Given the current lockdown, this year it’s worth making a concerted effort to get to it sooner – especially if you need to do it by phone. The challenges of so many people working from home mean it’s likely to be busier on the phone lines.
2. Open an Isa online: If you’ve never done it before, it’s worth giving it a try. You may find it far easier than you thought to open your Isa, and preserve this year’s Isa allowance, without needing to speak to anyone.
Make sure you leave yourself enough time to do it at your own pace though, the 11th hour is never a good time to get to grips with something completely new. 3. Make sure you have what you need to hand:
To open an Isa online, you’ll need a debit card with cleared funds and your national insurance number, above.
4. Avoid slip-ups: If you’re sending a postal application, you don’t have time to correct mistakes like forgetting to sign forms or writing cheques out incorrectly, so pay attention to all the details.