Spoke to halifax this morning, the help to buy isa I set-up on 8th Dec that didnt get funded to is being closed, going to get some money (£1k) in to my lloyds ISA then do an ISA transfer from that in to a newly set-up help to buy ISA with Halifax and set-up the standing order for £200p/m paid in to that.
Once that's done I will look at a regular savings for the rest of it to go.
When i opened my current accounts, TSB and Nationwide were offering 5% accounts with no D/Ds. But they'll only allow you to save up to 2k and 2.5k respectively. Also worth noting the Nationwide account is only 12 months, so it's not worth opening unless you have the full 2.5k to open the account with.
ISA's are a waste of time (unless you want the tax free protection). I earned more in 4 months of interest from my current accounts, than i did with my entire ISA interest last year.
I know although if I save for a year/year and 5 months or something I could still make over a grand in bonus for the deposit+interest for 1 year or 1 year 3 months
That will be the only ISA I have
The rest will go in to another savings fund which I will need to look at after.
That would be the case, however I had a Santander ISA that had a very small amout paid in to it (literally about £100) this tax year, then closed, halifax are saying I need to speak to HMRC, and see if there is a way to get the subscription of what was pain in to that, transferred to the Lloyds ISA subscription, then an ISA transfer from Lloyds in to the halifax]
If they will do that though is another question, they may not
So you've somehow managed to have two ISA's this year? one with Santander, and the other with LLoyds? Are both cash ISA's? or 1 cash and the other s&s?
For anybody else looking in that may be swayed, HTB ISAs are incredibly easy once you've read up on them and present an excellent return (the likes of which you're unlikely to see anywhere else). You've been unfortunate in your situation, but they're definitely worth it for the rest of us Mine was set up in 2 minutes online!
Solicitors and those in the legal profession are fairly handsomely paid. Coupled with the fact higher income households are more likely to vote Conservative. Doesn't take a genius to figure out.
They are handsomely paid but solicitors in this legal area are more high-throughput low margin. They are not the corporate Lovells/Freshfields solicitors more the high street and solo solicitors. So £60-70k perhaps?
In addition this kind of work is frequently given to the associates. So £35-45k?
In those ranges the gaps don't look like gaps at all.......
Just recieved this from HMRC, whaaat, so confused, so the banks are saying one thing, the HMRC are saying different?
Hi
Thank you for your email.
The rules say that you can only subscribe to one cash ISA per tax year.
You tell me that you have paid new money into both a Lloyds and Santander cash ISA since 6/4/2015. This means that both LLoyds and Santander will report subscriptions to HMRC after 5/4/2016. Both these accounts now have zero balances (Santander has been closed). If you close the Lloyds ISA, both ISA managers will also report a closure date to HMRC 2015/16.
If you go ahead and open a H2B ISA 2015/16 then you have to sign a declaration " I have not subscribed and will not subscribe to another cash ISA in the same tax year that I subscribe to this cash ISA"
If you stay within the ISA subscription limits 15/16 HMRC may not take any action"
so basically HMRC are saying if I close the Lloyds ISA and the Santander ISA, I should be good to open the Halifax Help to buy with no issues?
Can anyone tell me if this is what I am reading here?
In my short experience regarding the HTB schemes they are just a pain or have so much small print.
ISA - hardly worth it where I live (and surrounding area). Only usable up to £250k and the rate at which you 'earn' money is far lower than rising house prices. 5 years for an extra £3k? lolz.
Equity Scheme - Seems there is a lot of small print regarding how long the build time is. If the house is going to take longer then 6 months to build they won't qualify for HTB Equity Scheme. Also what type of house it is and what kind of estate it is on (affordable housing present/ council housing present). Think this scheme runs our end of the year also...
I didnt know about the rules of ISA, they were never used for savings, well the Lloyds ISA just opened as part of my bank opening the Santander one was opened but didnt end up using it for savings.
My Santander ISA has been re-opened, I am wondering can I do an ISA transfer of the Santander one to Lloyds now? thus any small amount in their, and the subscription I had paid in to it would be transferred to Lloyds? then do an ISA transfer to Lloyds to Halifax?
Will this work?
HMRC replied to me with this
Hi
If you go ahead you will be signing an incorrect application for the H2B ISA so in strictness you can't.
Shan
So looks like I cant, but what about doing the ISA transfers?
I'm going on the assumption that they think you're planning on opening one this year, which considering you've already opened an ISA wouldn't be allowed.
I can't see HMRC stopping you from opening a new HtB ISA in April, as it's the new tax year so your limits are all reset. As long as you don't open another cash ISA in the same tax year.
Halifax would be the only ones who may have a problem, but based on your previous comments, it seems they're fine with you opening another one in the new tax year.
I'm going on the assumption that they think you're planning on opening one this year, which considering you've already opened an ISA wouldn't be allowed.
I can't see HMRC stopping you from opening a new HtB ISA in April, as it's the new tax year so your limits are all reset. As long as you don't open another cash ISA in the same tax year.
Halifax would be the only ones who may have a problem, but based on your previous comments, it seems they're fine with you opening another one in the new tax year.
Well I dont really know, they are saying I cant have paid in to another one this tax year, but there is also conflicting info about if I were to do ISA transfers
I dont really know, and it seems there is conflicting info coming from all angles on this.
Just recieved this from HMRC, whaaat, so confused, so the banks are saying one thing, the HMRC are saying different?
Hi
Thank you for your email.
The rules say that you can only subscribe to one cash ISA per tax year.
You tell me that you have paid new money into both a Lloyds and Santander cash ISA since 6/4/2015. This means that both LLoyds and Santander will report subscriptions to HMRC after 5/4/2016. Both these accounts now have zero balances (Santander has been closed). If you close the Lloyds ISA, both ISA managers will also report a closure date to HMRC 2015/16.
If you go ahead and open a H2B ISA 2015/16 then you have to sign a declaration " I have not subscribed and will not subscribe to another cash ISA in the same tax year that I subscribe to this cash ISA"
If you stay within the ISA subscription limits 15/16 HMRC may not take any action"
so basically HMRC are saying if I close the Lloyds ISA and the Santander ISA, I should be good to open the Halifax Help to buy with no issues?
Can anyone tell me if this is what I am reading here?
All they're saying here... is that in April, Lloyds and Santander will report to HMRC that you subscribed to an ISA account each. Santander will also report that the ISA held with them is closed. They will also report the balances of both accounts.
I'm not sure what question you asked, but they've not told you what the repercussions are of having opened two ISA accounts.
How much money had you fed into both ISAs over the course of the year?
Hypothetically speaking here, as i've no idea what "punishment" for a better word, they would levy on someone who has opened two ISA accounts. I suspect they would claw back the tax free payments made over the official limit.
Hypothetical example: £15,000 ISA limit at 2% (15k balance) would net you around £300 interest over the year, so assuming you open two of these both with a 15k limit, and thus making £600 interest. HMRC would likely look to recover the £300 interest, and maybe additional costs as they see fit.
Based on how you've described your use of both of these accounts, i wouldn't have expected you to have reached the threshold of a single account, so any penalty may be a little unfair to you.
Hopefully that all makes sense .
The system clearly needs updating to check for an existing ISA subscription, to prevent people from accidentally signing up for multiple ISA accounts.
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Mine was set up in 2 minutes online!
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