Tax year end 2020/21: key dates for the current tax year  

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The 2020/21 tax year ends at 23:59:59 on Monday 5th April 2021. To ensure you don’t miss out on taking full advantage of the various tax-free allowances that reset at the end of the tax year, we’ve put together a guide with the key dates you need to be aware of. That way, you can make contributions with plenty of time to spare and avoid any last-minute worries during the Easter bank holiday weekend 

Tax Year End

Let’s take a look at the deadlines you need to know:  

If you have a pension with us 

One-off or recurring contributions into a Nutmeg pension can only be made via a direct debit payment.  

If you’re making your first direct debit payment into a Nutmeg pension, then 4pm on Thursday 18th March 2021 is the deadline you need to know. As the first direct debit payment takes ten business days to process from when the mandate is put in place, direct debits initiated after this date are not guaranteed to reach us before the end of the tax year.  

Please note, we may ask for documents to verify your identity or support your direct debit set-up, in which case, it could take longer to get your pension and payment set up. 

In summary, plan ahead to make sure your pension payments arrive on time.  

If you have previously made direct debit payments from the same bank account, then 4pm on Thursday 25th March 2021 is the deadline you need to be aware of.  

Don’t forget, making pension payments through our mobile app is simple and only takes a few taps. 

If you have a stocks and shares ISA with us 

If you have a direct debit into your Nutmeg ISA that is usually paid into your account between the 1st and 5th of the month, your April direct debit will fall into the new tax year as a result of the Good Friday and Easter Monday bank holidays. If you’d like to make a contribution within this tax year, the options and their deadlines are detailed below.

You can pay into a Nutmeg stocks and shares ISA with the following payment methods: debit card, manual bank transfers (BACS, CHAPS and Faster Payments), Open Banking paymentsand Apple Pay and Google Pay via our mobile apps.  

It is worth noting that banks have complicated rules for cut-off times for payments and may have different payment limits for different transaction methodsTherefore, the rule of thumb is the earlier the better’’ if you want to ensure your payment reaches us before the end of the tax year.  

Open Banking payments offer you a faster payment option as the transfer from the bank will be immediate and, as a result, the deadline for Open Banking payments is later.   

The ISA deadlines you need to know:  

  • Deadline for BACS (nonFaster Payments) transfers is 4pm on Tuesday 30th March. Some banks may have transaction limits, which may require you to split your payment over a number of days. 
     
  • Deadline for CHAPS bank transfers is 4pm on Wednesday 31st March 2021Some banks will require a manual set up which may increase the time it takes to process these payments. We also encourage you to check with your bank if they can send your payment via the Faster Payment method. 
     
  • Deadline for Faster Payments via online banking is 12pm on Thursday 1st April 2021. Again, some banks may have transaction limits, which may require you to split your payment over a number of days. 
  • Deadline for contributions via debit card, Apple Pay, Google Pay and Open Banking is 23:59 Monday 5th April 2021Even though the money will reach Nutmeg a few days later, the important thing here is the time the payment is made – payments with a “timestamp” of 23:59 or before on Monday 5th April will be subscribed to the 2020/21 tax year. Although, we don’t recommend leaving it until the very last minute – poor wifi or 4G reception, an unexpected additional check by your bank or even a computer restart, and the opportunity to take advantage of the ISA allowance is gone. You’ll get another allowance in the next tax year, but your current allowance won’t roll over. Use it or lose it.

If you have a stocks and shares Junior ISA with us: 

You can pay into a stocks and shares Junior ISA with the following payment methods: debit card, manual bank transfers (BACS, CHAPS and Faster Payments), and Apple Pay and Google Pay via our mobile apps.  

  • Deadline for BACS (non-Faster Payments) transfers is 4pm on Tuesday 30th March. Some banks may have transaction limits, which may require you to split your payment over a number of days. 
     
  • Deadline for CHAPS bank transfers is 4pm on Wednesday 31st March 2021. With a £9,000 allowance for a Junior ISA one bank payment would probably suffice, but we do encourage you to check with your bank as some banks will require a manual set up which may increase the time it takes to process these payments. We also encourage you to check with your bank if they can send your payment via the Faster Payment method. 
    • Deadline for Faster Payments via online banking is 12pm on Thursday 1st April 2021. Again, some banks may have transaction limits, which may require you to split your payment over a number of days.
       
  • Deadline for contributions via debit card, Apple Pay and Google Pay is 23:59 Monday 5th April 2021. Even though the money will reach Nutmeg a few days later, the important thing here is the time the payment is made – payments with a “timestamp” of 23:59 or before on Monday 5th April will be subscribed to the 2020/21 tax year. Although, we don’t recommend leaving it until the very last minute – poor wifi or 4G reception, an unexpected additional check by your bank or even a computer restart, and the opportunity to take advantage of the Junior ISA allowance is gone. You’ll get another allowance in the next tax year, but your current allowance won’t roll over. Use it or lose it. 

Don’t forget, friends and family can also pay into a Nutmeg Junior ISA via bank transfers, so it’s best to share the payment details and deadlines with them too. You can share the payment details easily from the mobile app when tapping on the “Pay in” button when viewing the Junior ISA. 

If you have a stocks and shares Lifetime ISA with us: 

If you have a direct debit into your Nutmeg Lifetime ISA that is usually paid into your account between the 1st and 5th of the month, your April direct debit will fall into the new tax year as a result of the Good Friday and Easter Monday bank holidays. If you’d like to make a contribution within this tax year, the options and their deadlines are detailed below.

You can pay into a stocks and shares Lifetime ISA with the following payment methods: debit card, Apple Pay and Google Pay via our mobile apps 

If you want to make a contribution to your Lifetime ISA before the end of the tax year you have until 23:59 on Monday 5th April.  Even though the money will reach Nutmeg a few days later, the important thing here is the time the payment is made – payments with a “timestamp” of 23:59 or before on Monday 5th April will be subscribed to the 2020/21 tax year. Although, we don’t recommend leaving it until the very last minute – poor wifi or 4G reception, an unexpected additional check by your bank or even a computer restart, and the opportunity to take advantage of the Lifetime ISA allowance is gone. You’ll get another allowance in the next tax year, but your current allowance won’t roll over. Use it or lose it. 

 

If you need any support: 

Our client services  team is available to answer any of your questions as we approach 5th April 2021See our extended support hours.

 

Risk warning 

Tax treatment depends on your individual circumstances and may be subject to change in the future.  

As with all investing, your capital is at risk. The value of your portfolio with Nutmeg can go down as well as up and you may get back less than you invest. Past performance is not a reliable indicator of future performance. A stocks and shares ISA may not be right for everyone and tax rules may change in the future. If you are unsure if an ISA is the right choice for you, please seek financial advice. 

A stocks and shares Lifetime ISA may not be right for everyone. You must be 18–39 years old to open one. If you need to withdraw the money before you’re 60, and it’s not for the purchase of a first home up to £450,000, or a terminal illness, you’ll pay a 25% government penalty. So you may get back less than you put in. Compared to a pension, the Lifetime ISA is treated differently for tax purposes. You may be better off contributing to a pension. If you choose to opt out of your workplace pension to pay into a Lifetime ISA, you may lose the benefits of the employer-matched contributions. If you are unsure if a Lifetime ISA is the right choice for you, please seek financial advice. 

The value of your Junior ISA can go down as well as up and you may get back less than you invest. To open a Nutmeg JISA, your child must be under the age of 16 and funds cannot be withdrawn until your child turns 18. Tax treatment depends on your individual circumstances and may be subject to change in the future. If you are unsure if a Junior ISA is the right choice for you and your child, please seek financial advice.  

A pension may not be right for everyone and tax rules may change in the future. If you are unsure if a pension is right for you, please seek financial advice.

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