According to This Is Money savers who are looking to put money aside regularly each month could benefit from a tax perk starting next April.

They have said if you start a regular savings plan at the start of the next tax year on April 6, you would not see any interest for a year however by which time it could all be tax-free.

One of the best options for monthly savers have been a cash ISA due to the interest being tax-free.

This option according to This Is Money still remains the case if you want to put away money for the long term. There is however a new personal savings allowance from April 2016 which means that those who don’t want to use up their ISA allowance can also benefit.

From next April, the basic-rate that taxpayers will pay no tax on the first £1,000 of interest from their savings however for higher-rate-taxpayers it would be £500.

Your are able to use this allowance even if the interest is earned in the previous tax year, when it is added to the account that counts.

If you are to start your plan from April 6 this year , the new allowance will be in place by the time you get your interest. The reason for this is because often with these type of regular saving plans interest is added at the end of the year.

If you wish to seek independent financial advice on your savings or ISA’s we at Hutt Professional have financial advisers with many years of experience who would be more than happy to offer you independent financial advice. If you are located in Leamington Spa or surrounding areas and wish  to seek independent financial advice please do not hesitate to contact us.

Source :      01/04/2015