Individual Savings Accounts (ISA) and SIPP Deadlines
Extra care is need to make sure product deadlines are met. To qualify for tax favoured ISAs, all subscriptions must be made via cleared BACS/CHAPS payment or Cheque payment and submitted on time in order to meet HMRC rules.
This year, the tax year ends on 5th April 2021, but due to the Easter bank holiday our cut-off date for subscriptions is 1st April 2021.
In a nutshell, this means that to be applied to the 2020/21 tax year:
- Cheque payments must be received at our Head Office on or before 1pm on 1st April 2021
- All other payment types must clear into our bank account on or before 1st April 2021
For more detail on this and other important deadlines, see the table below.
Please make sure that all portfolios and expectations have been created before issuing payment to Parmenion. Without a sufficient portfolio and expectation present, the payment will not be applied to the portfolio and will consequently miss the cut off times and dates detailed below.
If you need help creating expectations please contact our Client Services Team on 0117 204 7678 and they’ll be happy to help you.
2020/21 ISA and SIPP Deadlines:
|Tuesday 16th March 2021
|Cut off to receive a taxable income amount where sales are required and income tax is calculated this tax year.*|
|Thursday 18th March 2021
|Cut off to set up an automatic Bed and ISA from a Parmenion GIA (for the 2021/22 tax year contributions).
Cut off to receive single PCLS instruction in order to Crystallise in this tax year where sales are required.*
|Thursday 18th March 2021
|Cut off to manually instruct Bed and ISA from a Parmenion GIA using the online tools for the 2020/21 tax year.**|
|Friday 19th March 2021
|Bulk Bed and ISA process will be initiated by the General Admin team (for the 2021/22 tax year contributions).***|
|Monday 22nd March 2021||Parmenion will begin to accept cheques that have been post-dated for the 6th April 2021 (2021/22 tax year).
Please make sure that a sufficient expectation has been created against the portfolio.
|Tuesday 30th March 2021
|Cut off to receive single PCLS instruction in order to Crystallise in Tax Year 2020/21, where portfolio is held in cash.*|
|Thursday 1st April 2021||Cut-off date for subscription payments to be received, in order to be applied to the 2020/21 tax year.
1pm – All product subscription cheques to be at Parmenion’s head office. Please refer to the Parmenion Payment Details document for further information.
Please check with your bank to make sure the funds will clear into the Parmenion Client Account on 01/04/2021.
To avoid funds being returned to source please make sure:
Please note: We only accept personal cheques. Bankers drafts or cheques drawn directly from or signed by a building society are not accepted and will be returned.
|Thursday 1st April 2021
Close of Business
|2020/21 tax year Ends|
|Tuesday 6th April 2021||First business day of 2021/22 tax year. Cheques post-dated for 6th April 2021 will be applied if a sufficient expectation has been created.
Any ISA subscriptions received on or after this date will be applied to the 2021/22 tax year.
There can be no carry back to the previous tax year.
*Where an investment solution is selected, we’ll assume that at the start of the process all funds are settled and ready to be sold.
**Any manual portfolio to portfolio transfers instructed after this date will be initiated, but may not meet the cut off for the 2020/21 tax year subscriptions
***The automatic Bed and ISA process will only initiate if the source portfolio holds a value of £500.00 or more. If you’ve instructed an automatic Bed and ISA and the source portfolio does not meet this criteria, but holds over £10.00, you’ll receive a notification instructing you to run this process manually using the online tools if required after the 6th April 2021.
Please note: the automatic Bed and ISA process will also not run if any of the following criteria are met, however no notification will be issued:
- The source portfolio is not active or has been closed down
- The destination portfolio is not active or has been closed down
- The source portfolio holds less than £10.00 value
- There is a portfolio to portfolio transfer already in progress
Where transfers have been requested, we can’t guarantee these transfers will complete in time for:
- GIA funds for 2020/21 ISA subscriptions
- SIPP funds for crystallisation in the 2020/21 tax year
- ISA subscriptions to be made with Parmenion for the 2020/21 tax year, if there are current year’s subscriptions with the previous ISA provider.
ISA allowances expire at the end of each tax year and can’t be carried forward. Our platform includes functionality to check unused subscription allowances for individual clients. Please speak to our Client Services team if you are not familiar with this functionality or want to cross check your own records.
Automatic Bed and ISA
Standard practice today is to make sure clients utilise ISA subscriptions at the start of the tax year, to maximise their tax benefits. Our platform incorporates functionality to allow the transfer to be executed automatically. To use this feature, it must be set up before close of business on 18th March 2021.
We recommend this procedure is followed for all new clients. For more information on this please contact our Client Services team.
Direct Debit Overflows
If there’s no overflow portfolio set up for a client and we receive a Direct Debit into an ISA and it oversubscribes it for the current tax year, we’ll return the full Direct Debit, regardless of whether they have some allowance left.
- ISA £20,000
- JISA £9,000
- ISA £20,000
- JISA £9,000
Please make sure that the money to fund subscriptions is available in good time, so your clients can make the most of their allowances.
“The above article is intended to be a topical commentary and should not be construed as financial advice from either the author or Parmenion Capital Partners LLP. If a client wishes to obtain financial advice as to whether an investment is suitable for their needs, they should consult an authorised Financial Adviser. Past performance is not an indicator of future returns.”
Any news and/or views expressed within this document are intended as general information only and should not be viewed as a form of personal recommendation. All investment carries risk and it is important you understand this. If you are in any doubt about whether an investment is suitable for you, please contact your financial adviser.