When is the ISA deadline for 2019?
When is the ISA deadline for 2019? Each year we are faced with a new tax year. This new tax year starts on 6th April and runs up until the same date of the following year. Most of us (as with everything) tend to leave it until the last minute, missing out on the opportunity to make the most of the year’s tax-free allowance. According to this is money UK up to half of all ISA investments are submitted in the 3 remaining months of the ISA deadline. 15 percent submitted their ISA funds in the final two weeks (yikes). Talk about playing chicken!
Like many of us only know too well, rushing leads to mistakes. By leaving your application until the last minute, you are running risks on varying levels. Not only are you subjecting yourself to losing out on the opportunity to earn interest on your existing capital but when you leave your application to the last minute you run the risk of making a myriad of errors. This in turn, effectively slows down the process and increases the chances of potentially missing out on the years ISA deadline.
Before filling in your application, here are a few things to bear in mind:
1) Concentrate on the details– make a mistake and you could run the risk of slowing down the investment process. Even the most (seemingly) inconsequential error could see your application rejected.
2) Potential glitches- whether your investing through a bank or fintech provider, there is always the potential for things to go wrong. From a minor glitch to a misunderstanding or mix up, sod’s law is a very real and all too familiar thing.If you’re leaving your application half an hour before the deadline, you’re leaving yourself wide open for a world of trouble.
3) Technical pitfalls- Despite what they tell us technology can go wrong (and it quite often does). Not only does your provider have the potential to experience any number of technical difficulties, but there’s always room for problems on your end- so yes, it’s probably time to get that dodgy router looked at.
So why do people hold back and leave it until the last minute? For some of us life just tends to get in the way, and other things take precedence. Whilst a lot of people don’t have the funds to be able to make the most of the entire tax-free allowance given to us every year, putting what you do have to spare (however little) into an ISA could help you on your way to building a brighter financial future.
For those that are savvy with their money, an ISA could prove to be a valuable asset when trying to grow your capital. Although some types are prone to risk, ISAs can offer appealing growth and/or income rates and can help to generate a bigger return on the money that you put in. If you’re worried that you might not have enough to start contributing to an ISA it’s not as much of a pipe dream as you may think.
By putting just £20 away each week over the course of a year you could soon have enough money to invest into an ISA. Think about it- £20 a week, 52 weeks in a year- that’s an additional £1040 a year at your disposal! With the glorious concept that is compound interest, this total will accumulate and could, eventually, be worthy of supplementing your income (providing that nothing goes wrong). After all, what else would you spend that £20 on?
Don’t worry if you’re struggling for ideas, the internet -as ever- is full of helpful suggestions as to how you can spend your £20.
1) An egg cooker
2) Desk humidifier
3) Travel steamer
On second thought…
As you’ve hopefully realised, it’s probably a better idea to make better use of your money and the allowance that you have been given. By topping up what you already have in your ISA account, you are keeping your money out of the hands of the tax-man and essentially putting it back into your pocket. By making full use of your ISA allowance could be putting yourself in better stead for the future. That is, of course providing that the money that you have invested hasn’t been lost over the course of your investment- as always, any and all types of investment are subject to risk.
Strapped for cash?
We get it, sometimes it’s just not that easy to pull cash out of nowhere, especially if you only have a limited time (by the ISA deadline) to do so. That being said, if you have existing cash in other ISAs and you’re looking to get a better rate, it wouldn’t hurt to shop around and make the most of the remaining time at hand. Currently, the most ‘lucrative’ Cash ISA on offer in the UK is (as of December 2018) is 2.26%. The House Crowd’s Innovative Finance ISA on the other hand offers investors 7%* p.a. completely tax-free and two interest payments a year if you are prepared to take a degree of risk with your money. Alternatively, it’ could be worth earmarking money that you’re thinking about contributing towards your ISA allowance. This way you will have less chance of cutting into your ISA budget prior to the deadline and realising your funds are now falling short.
So now that we’ve answered the question of ‘when is the ISA deadline for 2019?’ you can start to consider your investment options. If you would like to consider The House Crowd’s Innovative Finance ISA, why not speak to our member support team who would be happy to answer questions and address any of your concerns.
*Remember, your capital is at risk and rates are not guaranteed. Please read our Important Information page and Risk Warning page before you consider investing.
**There is no fee for a transfer from another ISA manager for amounts of £5,000 and over. For amounts lower than £5,000 there is a £50 admin fee which will be deducted from the amount transferred over. There is a minimum £1,000 amount that you can transfer over, before fees. Transfers in do not need to be in £1,000 increments, so you can for instance transfer in amounts such as £5,261.55.