Millions of Britons are at risk of missing the opportunity to capitalise on their ISA tax allowance and their pension contribution limits because they don’t know when the tax year ends.
Standard Life’s “Financial Efficiency” research also shows that only three in 10 Brits (31%) know the correct date for the end of the tax year.
Tax year end falls on April 5, but the majority of the public (69%) either doesn’t know or thinks it’s a different date. Some said it was earlier in the year, with one in 12 of us (8% – more than 4.08 million people) thinking the end of the tax year is April Fool’s day.
But more alarmingly, over one in seven (15%) of respondents believe their tax deadline falls after April 5. Even those who already actively save into ISAs can still get it wrong.
Only 36% of ISA investors were able to correctly identify the tax year end date and a worrying one in six (17%), thought the tax year end was later than April 5.
People in Northern Ireland seem to be the most clued up on the tax year end deadline, with almost two in five (38%) identifying the correct date. While people in Wales were the least aware, with only one in four (25%) people able to correctly identify April 5 as the tax year end.
Standard Life’s Julie Russell said: “Our research shows that few people know when the tax year ends. While more people believe it is before April 5, each year than after, and that is perhaps less of a worry, it’s a real concern that so many ISA investors don’t know when the annual cut off point is for their investments.
“If you are saving into tax-efficient savings or investments like ISAs or pensions, then you really do need to know when the tax year ends. 5 April should be front of mind. Otherwise you risk not making the most of these products and their valuable allowances.”
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