UK fintechs are remaining tight-lipped on whether they will take up the government’s offer of thousands of pounds for returning furloughed workers to their jobs.
The government’s job retention bonus scheme pays businesses £1,000 for each furloughed worker brought back to work and kept in post until January.
The government is hoping the job retention bonus scheme will help prevent a spike in unemployment when the furlough scheme, which has helped pay wages, finishes in October.
Fintechs have taken advantage of the furlough scheme during the pandemic, but the bulk of those contacted by AltFi would not be drawn on whether they would be applying for the bonus scheme.
Historical Performance And IFISA Process Guide
That figure is the result of over £21 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders’ capital is at risk. Read warnings on site before committing capital.
All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.
So here’s our guide to the process:
The ISA allowance for 2019/20 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here.
Once you have made your initial commitment, you might then consider diversifying – buying a spread of loans. To do this, you can go into the “loans for sale” market. All loans bought in this market also qualify for IFISA tax benefits.