The 2021/22 tax year ends at 23:59:59 on Tuesday 5th April 2022. To make sure you take full advantage of your ISA and pension 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.
It’s wise to make contributions with plenty of time to spare to avoid any last-minute worries. Some banks have complicated rules around cut-off times and payment limits. Therefore, we recommend getting prepared, speaking to your bank if needed and contributing as soon as you can.
If you have a Nutmeg ISA, there are a variety of ways to contribute and invest your money in a way that works for you. Nutmeg pensions have different deadlines that you need to be aware of, some as early as Friday 18th March. Pensions are discussed later in the guide.
Different types of ISAs and pensions have specific annual allowances. Understanding these allowances means you can plan when and how you invest, which can have a big impact on the tax efficiency of your portfolio. Read about the annual allowances in our blog.
Tax Year End Dates 2021/22
If you have a stocks and shares ISA, Junior ISA or Lifetime ISA with us…
There are a variety of ways to contribute to your stocks and shares ISA, Junior ISA and Lifetime ISA to invest your money in a way that suits you and make sure contributions are attributed to the 2021/2022 tax year.
If you have regular contributions, via a Direct Debit, that are set up to be collected between the 2nd and 5th of April, your contribution will fall into the new tax year. Therefore, you’ll need to change your Direct Debit date so that it is collected on or before Friday 1st April. Be aware that it can take up to five business days for updates to be applied, so best to make any changes before Friday 25th March. If you haven’t set up a Direct Debit before, be aware that this can take up to 10 business days, so you’ll need to plan ahead.
If you make regular contributions into your JISA with a standing order, you’ll need to be aware of the deadlines for manual bank transfers. For most standing orders the deadline is 12:00 (noon) on Tuesday 5th April, but for BACS and CHAPS transfers, the deadlines are earlier.
You can contribute to your ISAs as many times as you like before tax year end with lump sum contributions, providing you don’t exceed the annual allowance. The deadline for contributions by Bank transfer via open banking, debit card, Apple Pay or Google Pay is 23:59 Tuesday 5th April. Bank transfer via open banking is the fastest method for contributing to your ISAs.
Manual bank transfers are transfers made directly from your bank to your Nutmeg account, using your Nutmeg account number for reference. The deadline for most people using manual bank transfers is 12:00 (noon) on Tuesday 5th April, however if you specifically use BACS or CHAPS there are earlier deadlines. Be aware that depending on your bank you may need to split your contribution over several days.
- The deadline for BACS transfers is 12:00 (noon) on Friday 1st April.
- The deadline for CHAPS transfers is 12:00 (noon) on Monday 4th April. Some banks will require a manual set up which may increase the time it takes to process these payments.
- Friends and family can also contribute to a Nutmeg Junior ISA via manual bank transfers, so, make sure to share the payment details and deadlines with them too. You can share the payment details easily from the mobile app by tapping the “Pay in” button when viewing the Junior ISA.
- You’re currently not able to contribute to your Lifetime ISA by a manual bank transfer.
If you have a pension with us…
Both one-off and recurring contributions into a Nutmeg pension can only be made via a direct debit payment at this time.
If you’re making your first Direct Debit payment into your pension:
The deadline is Friday 18th March. The first Direct Debit payment takes 10 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.
We may also need to ask for documents to verify your identity or support your Direct Debit set-up, in which case, it could take longer to get your contribution set up. So, plan ahead to make sure your pension contributions arrive on time.
If you’ve already set up Direct Debit payments into your pension:
The deadline is Friday 25th March, so if your Direct Debit falls after this date, you’ll need to update the collection date so that it arrives with us in time to maximise your pension allowance for 2021/22. Be aware that it can take up to five business days for updates to be applied, so best to make any changes before Friday 18th March. Remember you can use Direct Debits to make one-off contributions if you need to top up your pension before tax year end.
When does the new tax year start?
The first day of the 2022/23 tax year is 6th April.
If you need any help
Our client services team is available to answer any of your questions as we approach tax year end. Drop us an email email@example.com. They can also refer you to our wealth services team for more in-depth guidance. See our extended support hours.
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. 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 and tax rules may change in the future. 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.