Making the Most of Your ISA Before the Tax Year Ends

4 Apr

Hi MOBsters!

We hope you’re having a great start to the month! At Mums Who Build, we’re here to help you gain financial confidence and security. This week, we’re covering ISAs (Individual Savings Accounts) and why now is the best time to check if you’re maximizing your allowance before the tax year ends.

In our latest Instagram Live, Jo Dean, an award-winning financial advisor, explained how ISAs can be a tax-efficient way to save and invest. With the tax year ending on April 5th, now is the time to review your options and make the most of your allowance.

1. Why ISAs Matter for Mums

Jo emphasised that ISAs are one of the most tax-efficient ways to save and invest. Here’s why they’re important:
✅ Tax-Free Growth – Any interest, dividends, or capital gains you earn in an ISA are tax-free.
✅ Flexible Options – Choose between Cash ISAs, Stocks & Shares ISAs, and Lifetime ISAs (LISAs).
✅ Annual Allowance Reset – The £20,000 ISA limit resets every tax year, and any unused allowance does not roll over.

💡 MOB Tip: If you haven’t used your full ISA allowance, consider topping it up before April 5th to maximise your tax-free savings.

2. Types of ISAs & How They Work

Jo explained that different ISAs serve different financial needs:
✅ Cash ISA – A low-risk savings account where your money grows tax-free.
✅ Stocks & Shares ISA – Invest in funds, shares, and bonds with potential for higher returns.
✅ Lifetime ISA (LISA) – A government-backed ISA designed for first-time home buyers or retirement savings, with a 25% government bonus on contributions (up to £4,000 per year).
✅ Junior ISA (JISA) – A tax-free savings account for children, allowing parents to save up to £9,000 per year.

💡 MOB Tip: Not sure which ISA suits you best? Consider your financial goals—short-term savings vs. long-term investments—and seek advice if needed.

3. How Much Can You Contribute to an ISA?

Jo shared that each adult can contribute up to £20,000 per tax year across any combination of ISAs.

Contributions are completely tax-free.
If you don’t use your full ISA allowance before April 5th, you lose that portion—it doesn’t roll over into the next tax year.

💡 MOB Tip: If you have extra savings, consider topping up your ISA before the tax year ends to make the most of your allowance.

4. ISAs vs. Pensions: What’s the Difference?

Jo highlighted that while both ISAs and pensions offer tax benefits, they serve different purposes:
✅ ISAs – More flexible, allowing access to your money at any time.
✅ Pensions – Locked away until retirement but come with higher tax relief on contributions.
✅ Lifetime ISA (LISA) – A hybrid option for buying a first home or supplementing retirement savings.

💡 MOB Tip: If you're unsure whether to contribute more to an ISA or a pension, think about when you'll need access to the funds and compare the tax benefits.

5. Teaching Kids About ISAs & Tax-Free Saving

Jo shared that Junior ISAs (JISAs) are a great way to start teaching kids about saving.

Parents can contribute up to £9,000 per tax year, and the money grows tax-free until the child turns 18.
This can give children a financial head start in adulthood.

💡 MOB Tip: Get kids involved by showing them how savings grow over time—this can make financial education fun and engaging!

6. Planning for the End of the Tax Year

Jo emphasised that as the tax year-end approaches, now is the time to review your finances and make last-minute contributions.
✅ Have you maximised your ISA contributions?
✅ Are you on track with your savings and investment goals?
✅ Do you need to adjust your strategy for the new tax year?

💡 MOB Tip: A quick financial check-in before April 5th can help you make the most of available allowances and set yourself up for success in the next tax year.

Join Our Monthly Instagram Live with Jo Dean

📅 Mums Who Build hosts a FREE monthly Instagram Live on the last Monday of each month with Jo Dean!
📲 Join us to:

Ask your finance-related questions live.
Gain expert insights into ISA planning, tax-free savings, and long-term investments.
Learn how to make smart financial decisions for your future.

Final Thoughts

We hope this blog helps you understand ISAs and how to make the most of them before the tax year ends. Making small, tax-efficient savings choices today can lead to greater financial security tomorrow.

💬 We’d love to hear from you – Are you contributing to an ISA? Drop your thoughts in the comments below!

📅 Don’t forget to join us at the end of the month for our Instagram Live with Jo Dean!

Who is Jo Dean?

Jo Dean is an award-winning financial advisor and was named ‘Woman of the Year, Investment Advice’. She helps clients simplify their path to financial security through personalised strategies. Her expertise covers tax mitigation, retirement & investment planning, asset protection, estate & inheritance planning, and cash & currency management.

🚀 How Jo Can Help:
Jo takes a tailored, bespoke approach to financial planning, recognizing that no two individuals share the same financial journey. Her ability to see the bigger picture and build trust with clients ensures that financial strategies align perfectly with individual aspirations.

📲 Want to connect with Jo for personalized financial guidance? Reach out to her via LinkedIn or contact her directly at jo@avantiwm.co.uk | 07972 114 038. Jo can also recommend accountants for those needing tax or accountancy support.

🚨 Disclaimer: This article is for educational purposes only and does not constitute financial advice. Always seek professional guidance for your unique circumstances.

MOB MOBSTER