Workplace Payroll ISA

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What kind of ISA is this?

It’s a stocks and shares ISA that you can buy and then pay in regular contributions directly from your net salary, through your employer’s payroll, in addition to your workplace pension. You have an annual ISA allowance of £20,000 for the 2017/2018 tax year. You pay no tax on any growth on investments within an ISA, although you do pay tax on the money you receive in your salary, before it’s invested within an ISA.

Why might you consider a Workplace Payroll ISA?

A Workplace Payroll ISA offers wide investment choice and benefits and with tax efficiency, gives you a flexible and tax-friendly way to save. The charges will be the same as those agreed with your employer for your workplace pension, so if you have a discounted charge for your pension set up through your employer, this same price will be applied to your stocks and shares ISA. There will be additional charges added to this price depending on what investment funds you choose to invest in.

The flexible ISA rules introduced on 6 April 2016 don't apply to the Workplace Payroll ISA. This means if you make a withdrawal, you won't be able to replace it, without it counting towards your annual limit. 

The value of an ISA will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than you invested. An investment in a stocks and shares ISA will not provide the same security of capital associated with a cash ISA. 

The favourable tax treatment of ISAs may not be maintained in the future and is subject to changes in legislation. If you’re unsure whether you should open a Payroll ISA, you should speak to a financial adviser.

Can I apply for one?

You can have a single stocks and shares ISA in any one tax year (between April 6 in one year and April 5 the following year). The Workplace Payroll ISA would count as that single stocks and shares ISA. So providing you haven't taken out another stocks and shares ISA this tax year, you can open one with Aegon. 

Your annual ISA allowance can also be used for a cash ISA, investing on the basis of interest paid on your cash lump sum. You can have a combination of a stocks and shares ISA and a cash ISA in the same year as long as you keep within your ISA allowance on the combined money you pay in. 

With a stocks and shares ISA your money is invested in funds of your choice, that are in turn invested in the stocks and shares of companies, along with company and government bonds. 

  1. Simply speak to your employer and ask them to set up your Payroll ISA option.
  2. Complete the application form provided in the link below and give this to your employer.
  3. Set up your access to Aegon Retirement Choices (ARC).
  4. Log into ARC and choose the fund/s into which you’d like to invest your contributions*.

The Workplace Payroll ISA application form can be found here; new window)

*You should not leave the Workplace Payroll ISA contributions in the ‘cash facility’ they must be invested. For those who prefer to invest in cash, a cash ISA is likely to prove more suitable – Aegon does not offer a cash ISA product.

To access ARC, you need to register with us**.

**If you’ve got a personal adviser you should contact them as they’ll arrange ARC access on your behalf.

We’ll set up your ARC online account and send your new login details.

Log into ARC at – new window) and enter your username and password.

(These details will be different to the login you use to access Retiready.)

To help you use ARC we’ve created a helpful guide - Your guide to Aegon Retirement Choices (PDF)(Opens new window)(Opens new window)(Opens new window) - which has useful information on how to make the most of the ARC digital service.

We’ll ensure your employer automatically enables ‘Gate 2’ which allows you to access the Aegon stocks and shares ISA. Then follow the steps below.

(‘Gates’ are simply permissions to access different levels of investment functionality on ARC.)

  1. Log into ARC using your username and password.
  2. Select your ‘Payroll ISA’.
  3. Select the fund or funds in which you’d like to invest, using our funds page to make your selection.
  4. Then click ‘maintain investment strategy’ as this will ensure your contributions are directed to your chosen fund/s until you decide to make an investment change.

The value of an ISA will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than you invested. An investment in a stocks and shares ISA will not provide the same security of capital associated with a cash ISA.

Yes you can, there are three different ways of doing so.

1. Change your regular payments 

If you want to change your regular contributions, speak to your employer and they’ll update their payroll for you. However if you no longer work for the employer of your pension scheme then you can use the top-up facility in ARC to start paying contributions, or increase contributions already set up.

2. Make a one-off single payment 

You can pay a one-off single payment using the top-up facility.

3. Transfer in an ISA 

If you have ISA savings elsewhere, you might want to consider moving these savings into your new ISA. Don't forget, you can only have one Stocks and Shares ISA and one Cash ISA in a tax year to the total value of £20,000 from the 6th April 2017.

To change payments, make a single payment or transfer an ISA you’ll need to:

  1. Log into ARC.
  2. Select your ‘Aegon Stocks and Shares ISA’ from the ‘Breakdown’ window on the home page.
  3. Choose ‘Top-up’ and complete the relevant process you require.

Confirmation of your changes will be uploaded to your document library.

Confirmation of a transfer will be uploaded to your document library. Any ISA transfer will be made in cash. During a transfer your ISA is not invested, so you won't make any investment losses or gains. This may not work in your favour. If you’re not sure if making a transfer is right for you, speak to a financial adviser.