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Care is needed to make sure product deadlines are met. To qualify for tax favoured ISAs, all subscriptions must be made via cleared BACS/CHAPS payment or Cheque payment and submitted on time in order to meet HMRC rules.
The tax year ends on Tuesday 5th April 2022. In a nutshell, this means that to be applied to the 2021/22 tax year:
- Cheque payments must be received at our Head Office on or before 1pm on 5th April 2022
- All other payment types must clear into our bank account on or before 5th April 2022
For more detail on this and other important deadlines, see the table below.
Please make sure that all portfolios and expectations have been created before issuing payment to Parmenion. Without a sufficient portfolio and expectation present, the payment will not be applied to the portfolio and will consequently miss the cut off times and dates detailed below.
If you need help creating expectations please contact our Client Services Team on 0117 204 7678 and they’ll be happy to help you.
Friday 18th March 2022 5pm
Cut off to receive a taxable income instruction (where income tax is calculated this Tax Year) where sales are required.*
Tuesday 22nd March 2022 5pm
Cut off to set up an automatic Bed and ISA from a Parmenion GIA (for the 2022/23 Tax Year subscriptions)
Cut off to receive single PCLS instruction in order to Crystallise in this tax year where sales are required.*
Tuesday 22nd March 2022 8pm
Cut off to manually instruct a Bed and ISA from a Parmenion GIA using the online tools for the 2021/22 Tax Year.**
Wednesday 23rd March 2022 8am
Bulk Bed and ISA process will be initiated by the General Admin team (for the 2022/23 Tax Year subscriptions)***
Monday 28th March 2022
Parmenion will begin to accept cheques that have been post-dated for the 6th April 2022 (2022/23 Tax Year).
Please ensure that a sufficient expectation has been created against the portfolio.
Friday 1st April 2022 5pm
Cut off to receive a single PCLS instruction in order to Crystallise in Tax Year 2021/22 where portfolio is held in cash.*
Tuesday 5th April 2022
1pm– All product subscription cheques to be at Parmenion’s head office. Please refer to the Parmenion Payment Detail document for further information.
All product direct credits to be received and cleared into the Parmenion Client money bank account in line with the UK banking cut off times:
- 3pm – CHAPS Payments
- 11.45pm – Faster Payments (Immediate)
Please check with your bank to ensure the funds will clear into the Parmenion Client Account on 05/04/2022.
To avoid funds being returned to source, please make sure:
- There’s a sufficient expectation created against the portfolio.
- That the direct credit is sent with the portfolio reference number or application reference. Please refer to the Parmenion Payment Details document for further information.
Please note: We only accept personal cheques. Bankers drafts or cheques drawn directly from or signed by a building society are not accepted and will be returned.
Tuesday 5th April 2022 Close of Business
2021/22 Tax Year ends
Wednesday 6th April 2022
First business day of 2022/23 Tax Year.
Cheques post-dated for 6th April 2022 will be applied if a sufficient expectation has been created in advance.
Any ISA subscriptions received on or after this date will be applied to the 2022/23 Tax Year.
There can be no carry back to the previous Tax Year.
*Where an investment solution is selected, we assume that at the start of the process all funds are settled and ready to be sold.
**Any manual portfolio to portfolio transfers instructed after this date will be initiated, but may not meet the cut off for the 2021/22 Tax Year subscriptions.
***The automatic Bed and ISA process will only initiate if the source portfolio holds a value of £500.00 or more. If you have instructed an automatic Bed and ISA and the source portfolio does not meet this criteria, but holds over £10.00, you’ll receive a notification instructing you to run this process manually using the online tools if required after the 6th April 2022.
Please note: the automatic Bed and ISA process will also not run if any of the following criteria are met, however no notification will be issued:
- The source portfolio is not active or has been closed down.
- The destination portfolio is not active or has been closed down.
- The source portfolio holds less than £10.00 value.
- There is a portfolio to portfolio transfer already in progress.
Transfers
Where transfers have been requested, we cannot guarantee these transfers will complete in time for:
- GIA funds to be used for 2021/22 ISA subscriptions.
- SIPP funds to be crystallised in the 2021/22 Tax Year.
- ISA subscriptions to be made with Parmenion for the 2021/22 Tax Year, if there are current year’s subscriptions with the previous ISA provider.
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Unused allowances
ISA allowances expire at the end of each Tax Year and cannot be carried forward. Our platform includes functionality to check unused subscription allowances for individual clients. Please speak to our Client Services team if you are not familiar with this functionality or want to cross check your own records.
Automatic Bed and ISA
Standard practice today is to make sure clients utilise ISA subscriptions at the start of the Tax Year, to maximise their tax benefits. Our platform incorporates functionality to allow the transfer to be executed automatically. To use this feature, it must be set up before close of business on 22nd March 2022.
We recommend this procedure is followed for all new clients. For more information on this please contact our Client Services team.
Direct Debit Overflows
If there’s no overflow portfolio set up for a client and we receive a Direct Debit into an ISA and it would oversubscribe the ISA for the current Tax Year, we’ll return the full Direct Debit, regardless of whether they have some allowance left.
2021/22 Allowances
- ISA £20,000
- JISA £9,000
2022/23 Allowances
- ISA £20,000
- JISA £9,000
Parmenion are not able to lend money to clients against the security of non-ISA assets to fund subscription allowances. Early action is advised to ensure clients do not lose their allowances.
This article is for financial professionals only. Any information contained within is of a general nature and should not be construed as a form of personal recommendation or financial advice. Nor is the information to be considered an offer or solicitation to deal in any financial instrument or to engage in any investment service or activity. Parmenion accepts no duty of care or liability for loss arising from any person acting, or refraining from acting, as a result of any information contained within this article. All investment carries risk. The value of investments, and the income from them, can go down as well as up and investors may get back less than they put in. Past performance is not a reliable indicator of future returns.