ISA deadline 2018: When is the ISA deadline? How to make the most of tax-free allowance

When is the ISA deadline? 

Savers are running out of time to add to their tax-free accounts, known as Individual Savings Accounts (ISAs), before the deadline at midnight on April 5.

The date marks the end of the 2017/18 tax year. If savers miss the deadline, they lose their unused allowance for the past tax year.  

Once midnight chimes on April 5, your £20,000 allowance for the 2017/18 tax year will disappear.

And with the Easter break and four-day weekend getting in the way, savers have even less time than they may think to make an application.

What is your ISA allowance? 

Each tax year Britons get an ISA allowance, which is the largest amount that they can save in cash and investment ISAs. 

The maximum amount that could be saved during the 2016/17 tax year was £15,240.

Now, the annual £20,000 allowance is now so generous that people do not think there is a pressing need to use it, as they can always use next year’s instead.

Savings which remain in an ISA year-on-year will continue to reap tax-free benefits until withdrawn from the account.  

How much is the next ISA allowance? 

In 2015/16 and 2016/17, the limit was £15,240.

In the current tax year, the limit saw an increase to £20,000 – a boost of 31.2 percent.

These generous increases are likely to have influenced the decision to not rise the Isa limit by inflation for the next financial year.

How to make the most of your ISA allowance

Up to £20,000 can be put into a cash ISA or a stocks and shares ISA. Alternatively, it can be split between the two types of ISAs. 

Cash ISAs are simple savings accounts which do not tax interest and offer a low-risk return on cash. 

The stock market offers higher potential rewards than a cash ISA but it comes with more risk. Here is advice on the best ISA for you. 

First-time buyers can save for a deposit in a Help to Buy ISA or young people can save for their first home and retirement using the Lifetime ISA. 

Alternatively, you can invest in a new innovative finance ISA which includes peer-to-peer loans.

How to open an ISA account? 

People can get an ISA from a range of banks, building societies, credit unions, friendly societies and stock brokers. 

Savers can even open an ISA account online as long as they have their national insurance number and money ready to transfer into the ISA. 

Anyone aged over 16 can open a cash ISA and anyone over 18 can open a stocks and shares ISA. There are also Junior ISAs for children.