Step-by-Step - Inputting an ISA with regular contributions

Go to the Investments screen:

1. Type & Account Name: Select Stock Market ISA/Junior ISA and enter the name of the account.

2. Balance: If the account has an existing balance (as at start-of-plan), then input this here. Note that Purchase Value identifies the cost basis of the existing balance - from a tax perspective, this is immaterial for ISAs, of course.


NB: Regarding contributions, the ISA allowance is assumed (by default) to increase at a rate of 4% per annum (along with most other allowances and tax bands, for more information on this click here). Further to this, the software enforces annual ISA contribution limits (per individual) within a plan. As such, the ISA contribution that actually gets made will always be the lesser of the contribution amount entered, or the (re-valued) ISA allowance.

3. Contribution £ or %: To make a regular contribution, there is a choice as to whether to enter a monetary £ figure or a % figure. The % option relates to employment earnings (including or excluding bonuses).

To make a contribution that is increasing year-on-year, therefore, one may either enter a value in the % field, on the basis that employment income is, itself, increasing. Or, one would enter a large value - (significantly) more than the current allowance - in the monetary £ field (e.g. 50,000).

In the instance, illustrated above, where a contribution of (e.g.) £6,000 has been entered - well within the current allowance - this contribution amount will simply remain static, throughout the plan.

Please also keep in mind that contributions will only be made if funds remain available after expenses have been met.


4. Time:  Go to the Time panel located towards the right-hand side of the screen (see screenshot, above). Selections on this panel are used to set the time span over which contributions (to the ISA) are to be made - in this instance, between the Start event and John's Retirement event.

Note: If you don't have events on the timeline already that are positioned appropriately to be used as start or end events, new ones can be easily added by clicking the New Event button, located in the bottom-right corner of the Time panel (Event tab).

5. People: In the People panel (also shown above), John's name is identified as the owner of the account. Ownership will default to the primary client, so one would deselect John and select Julia if this is not correct. 

If you are wanting to use savings/investment assets or the husband's assets for the purpose of making ISA contributions on her behalf, rather than surplus cash, this can be done using the 'Transfers/Additional Contributions' option, under Advanced Settings. This way, recurring contributions can be scheduled from a specified source account. The logic, with regard to escalating contributions, is exactly the same as outlined, above, within #3. See here for more detail on this.