10th August 2017
Savings and investments
CHW Accounting
The prospect of your child growing up, and how to fund this, is scary. When you consider the rising costs associated with your child, there’s no doubt it makes sense to start early, and saving regularly can help build them a future nest egg. Our CHW Bolton Accountants can help you plan for the future and help to build a nest egg for when your children need it.
In a recent survey conducted in October 2016 (*), almost half (48%) said they had saved or invested money for a child or grandchild under 18. The most common form of saving has been into bank savings accounts, despite interest rates on cash savings being near record lows.
14% reported that they had used Junior Individual Savings Account (JISA).
Currently, only parents or guardians can open a Junior ISA for a child. The survey found that 31% of grandparents would be more likely to save or invest for their grandchildren if they could open a Junior ISA themselves.
There are two types available: Cash or Stocks and Shares. The current tax year allowance is £4,128. Any interest or growth is free of income and capital gains tax.
Cash is similar to traditional savings accounts, but low interest rates could mean returns struggle to keep pace with inflation longer-term.
Stocks and Shares puts capital into investment funds, bonds or shares. There are various options available linked to your appetite for risk and reward. This offers greater growth potential over the longer-term, but be mindful the value of the investment can also go down.
When thinking about investing through JISA, it’s important to remember that JISA tax rules may change in the future.
If you’re thinking of building a nest egg for your children, ensure you contact our Bolton Accountants to help you devise a suitable and affordable plan. For any more information please contact us via our enquiry form.
Want to find out how we can help you and your business? Get in touch today and let's have a chat.
Grab a biscuit and a brew and read our latest news.
8 March 2022
Temporary reduced VAT rate for leisure and hospitality to...
On 8 July 2020, as an urgent response to the pandemic, the government announced a number of VAT measures including a temporary reduction of the VAT…
1 March 2022
National Minimum and National Living Wage changes April 2022
From 1 April 2022, the government is increasing but the National Minimum and National Living Wage rates. The National Minimum Wage is the minimum amount an…
22 February 2022
Dividend taxes to rise from 6 April 2022 –...
The government has confirmed that it will not be backing down on the planned hike in National Insurance (NI) and dividend tax from April 2022. There…
10 January 2022
Late filing and late payment penalties are to be...
HMRC has given self-assessment taxpayers more time to ease COVID-19 pressures. With the self-assessment deadline less than three weeks away, many individuals and agents will be…
7 January 2022
Making tax digital for VAT – April 2022 –...
Since 1 April 2019, VAT-registered businesses with a turnover above the VAT registration threshold of £85,000 have been required to keep their records digitally and provide…
No matter what your challenge is, we’ve probably dealt with it before.