With a whole year ahead of us, we've really no excuse.
It may be that some of you missed the glaring, open goal that is making use of the tax benefits offered by Individual Savings Accounts (ISAs) – see our CEO, Nicola Horlick, on this very topic. But this time around, with a generous £20,000 of onshore tax-free benefit to be claimed, the benefits are too good not to be considered very seriously.
The allowance for 2017/18 is increased from last tax year to £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. To get that return, a pair of higher-rate tax payers would have to find a gross yield of well over 12 per cent.
But, in Nicola's own words: "As with any investment, there are risks involved. We always take security for our loans, but it is still possible to lose money. Some of our loans carry more risk than others and we give them ratings of A+, A, B+, B and C+ to reflect how risky we believe that an individual loan is. The new loans that are currently on the site are rated A+ or A reflecting the quality of the security that has been given by the borrowers."
Risk, IFISAs & P2P
If you haven't made a loan via Money&Co. before, please read the risk warnings and the FAQ section. You may also wish to consult a financial adviser before making an investment.