Contractors and freelancers are known to work hard and save hard. Whether you are new to saving or an expert, the new ISA (NISA) introduced in 2014 is a great flexible and tax efficient way of investing for your future.
The new flexible ISA rules gives contractors the option of saving their whole NISA allowance of £15,240 (2015/16) in cash, stocks and shares or a combination of the two. This is great news for contractors as if you are between contracts, you can make use of the flexibility of being able to switch between high and low risk investments.
It is also worth noting that the annual ISA allowance is for every eligible adult. This means a husband and wife, for example, could put up to £30,480 between them into ISAs this tax year.
Invest in your child’s future
If you have been considering different ways you can save for your family’s future, you may find that a Junior ISA meets your needs as you can be confident that whatever your child’s dreams and aspirations are, going to university or buying a home, you have built up a little nest egg to help towards their future goals.
The junior stocks and shares ISA provides all the tax efficiency of an adult stocks and shares ISA, which means no personal income tax or capital gains tax are liable on these savings. There are two types of Junior ISA’s, stocks and shares and cash, both are available for UK residence, under the age of 18 with no child trust fund (CTF) and the annual limit is £4,080.
This is an excellent way to save for your child’s future. The funds will be locked away until they are 18, and only then will they be able to access the money. If they don’t choose to take some, or all of the cash, it will automatically change into an adult ISA, with all the tax free savings that an adult ISA benefits from.
Make the most out of your Investment
We have partnered with sister company Contractor Wealth.
Contractor Wealth are specialists in their field offering tailored advice for contractors and freelancers. Their extensive knowledge around how contractors and freelancers work will ensure your financial needs and remuneration structure are understood fully.
It is important to remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest. Therefore it is important that you check the performance of your investments to ensure they are still meeting your expectations and goals. Our team of experienced investment advisers are on hand to help you.
Contractor Wealth can help you set up your ISA, choose a varied spread of asset classes and offer advice on an ongoing basis to ensure your investment goals are met. We are proud to offer a portfolio management service, which tracks and reviews your investments to ensure they are on target to meet your savings objectives.
For further details on ISA’s or savings advice, please contact our investment team on 0333 370 8888 or fill in our contact form and a member of the Contractor Wealth Pension team will be delighted to help you.
The value of investments may fall as well as rise and past performance is not a guide to future returns.
Financial advice is given by Contractor Wealth Management Limited which is an appointed representative of Intrinsic Mortgage Planning Limited and of Intrinsic Financial Planning Limited who are authorised and regulated by the Financial Conduct Authority. Intrinsic Financial Planning Limited and Intrinsic Mortgage Planning Limited are entered on the FCA Register (http://www.fca.org.uk/register)under reference 440703 and 440718.