To maximise your benefits this year
There are many ISA products available these days from regular ISA’s, Junior ISA’s, the Help-to-Buy ISA and soon to also launch, the new Lifetime ISA. Saving into an ISA, or ISA’s, is a common part of investment and retirement planning for doctors and dentists, to save excess income for future requirements in a tax efficient way. Have you maximised your contributions for 15/16?
Just days to take action
The new tax year starts on 6 April leaving just a matter of days to make final contributions to your ISA. If you want to maximise your ISA benefits this year, read the rest of this article for more information about ISA benefits, and make contact immediately with your financial adviser who can help with your final contribution.
Things to note:
- Annual allowance – £15,240
- This is the maximum you can contribute in this tax year
- Take this figure and deduct contributions from 6 April 2015 to date, to calculate your maximum final contribution
- It takes time to process payments so don’t leave it until the last minute
- If using Dental & Medical Financial Services
- Cheques need to be received by 28 March
- Online payments need to be received by 3 April
- If using Dental & Medical Financial Services
ISA benefits for doctors and dentists
The main reason doctors and dentists choose an ISA over regular savings accounts is that the interest earned on the savings is completely tax-free.
Also, ISA’s are more flexible than they once were with many choices for the account holder.
Choose between a Stocks and Shares ISA, that generally pays better returns, but the risk is higher as here you are relying on stock market growth. Or, opt for a Cash ISA, which is a lower risk option.
The annual allowance for 15/16 tax year is £15,240, meaning interest can be earned tax efficiently to this level.
The investment can be either just Cash, just Stocks & Shares, or a combination of both, which is a common choice, but does depend on a number of factors, including the speed you may need to access the money and your attitude to risk.
Another flexible benefit with ISA’s is that transfers can in fact be made between Cash and Stocks ISA’s throughout the year, meaning you can manage your ISA according to your own agenda. A financial adviser can help though with making accurate decisions.
Maximising your ISA benefits
To maximise ISA benefits is to simply invest as much as is affordable to you into the ISA within each tax year.
Whilst only one ISA can be opened each year, there is no limit in your lifetime to how many you can own, so effectively you can open new accounts each year and let the funds accumulate until they are needed.
Before you go…
Don’t forget to download our free FactSheet all about ISA’s.
Dental & Medical Financial Services help doctors and dentists with effective investment and retirement planning. Call for advice on ISA’s and other financial products.
Tel: 01403 780 770