It’s too late to take advantage of your 2013/2014 ISA allowance however this tax year sees some momentous changes to the ISA landscape that make ISAs even more enticing. The ISA allowance is currently £11,880 but from 1 July 2014 ISAs will be reformed into a simpler product called the ‘New ISA’ (NISA) and the amount you can save will increase to £15,000 for the 2014-15 tax year.

You will have the choice to save the full £15,000 in a stocks and shares NISA, or the full £15,000 in a cash NISA. Alternatively you could save a combination of amounts between a stocks and shares NISA and cash NISA up to the overall limit of £15,000.

You will also have the option to switch from stocks and shares holdings in an ISA to cash holdings in an ISA.  This flexibility is great , but it may also require investors to maintain some discipline as discussed in my recent blog – ‘New ISAs – a warning’

So you know how much you can invest, but when should you pay into your ISA?

January through to May is traditionally considered the ‘ISA season’ with almost two thirds of the ISA business taking place over this period. Many investors chose to contribute throughout the year, however there are many who are rushing to maximise their allowance as the end of the tax year looms.

The argument has raged for many years as to when is the best time to invest in an ISA.

Should you invest at the end of March when all the investment companies are touting for more business, or is it better to invest in the previous April/May to potentially benefit from a full year of growth? Or should you go for the option of paying monthly so as to smooth out any volatility in the markets.

The most important thing though is to actually use it. Invest what you can, when you can and don’t leave it so late that you end up missing out altogether.

If you would like to review your ISA strategy, or learn more about tax efficient ISA saving, then contact us today on 01666 829224