Tax Tip – Top Up Your ISA Prior To 5 April 2014

As we approach the end of the tax year 2013/14, we would like to remind our readers to use up their 2013/14 ISA allowance if you have not done so already. Contractors with spare cash are advised to use up the tax free ISA allowance of £11,520 by 5 April 2014. ISA’s provide a tax free investment to savers and if you do not use the allowance you will lose it. Investments after 5 April 2014 will utilise next year’s allowance.

You are able to invest up to £5,760 in a cash ISA for 2013/14. A total of £11,520 can be invested into a stocks & shares ISA during the tax year although the allowance covers the cash ISA and so if you have invested in a cash ISA, the maximum available to invest in a stocks and shares ISA is £5,760.