Workplace Payroll ISABack to results
What kind of ISA is this?
Our Workplace Payroll ISA is a stocks and shares ISA that you can pay regular contributions into directly from your net salary (your salary after tax and NI have been deducted), through your employer’s payroll. You’ve an annual ISA allowance of £20,000 for the 2018/2019 tax year. You’ll have no personal liability to capital gains tax on any growth you receive on your Workplace Payroll ISA.
Why consider a Workplace Payroll ISA?
Our Workplace Payroll ISA offers a wide range of investment funds to choose from and with its tax efficiency, gives you a tax-friendly way to save.
The charge will be the same as that 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 charge will be applied to your Workplace Payroll ISA. There may be additional charges depending on which investment funds you choose to invest in.
The flexible ISA rules introduced on 6 April 2016 don't apply to our Workplace Payroll ISA. This means that if you make a withdrawal, you won't be able to replace it in the same tax year, without it counting towards your annual allowance for that tax year.
Are there any risks?
Yes - the value of your Workplace Payroll ISA will be directly linked to the performance of the funds you select to invest in, and may fall as well as rise. You may get back less than you invest.
Because the value of the ISA can fall as well as rise, although there’s no fixed term, you should be prepared to hold your money in the ISA for at least five years, ideally longer.
The favourable tax treatment of ISAs may not be maintained in the future and may be subject to changes in legislation. The benefit of the tax treatment depends on individual circumstances.
What if I’m unsure if this Workplace Payroll ISA is right for me?
If you’re unsure whether you should open our Workplace Payroll ISA, you should speak to a financial adviser.
Can I apply for one?
You can invest new contributions in 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. Aegon does not offer a cash ISA product.
Before applying please make sure you read the ARC Key Features document(Opens new window), and the Key Investor Information Documents (KIIDs) for each of the funds you wish to invest, which are available in the investment fund list(Opens new window).
- Read the Key Features and KIIDs referred to above. Make sure you’re comfortable with your decision to invest.
- Speak to your employer and ask them to set up your Workplace Payroll ISA option.
- Complete the application form provided in the link below and give this to your employer.
- Set up your access to Aegon Retirement Choices (ARC) (For details see the next section).
- Log into ARC and choose the fund/s you’d like to invest your contributions in*.
You’ll need to use the Workplace Payroll ISA application form(Opens new window) to open the ISA.
* The Workplace Payroll ISA is not suitable for those who want to leave their investment in the cash facility. For those who prefer to invest in cash, a cash ISA may be more suitable - Aegon does not offer a cash ISA product.
To access ARC, you need to register with us**.
- You can call us on 0345 680 1234.
- Or if you prefer you can ‘Chat to us online’ or ‘Send us an email’ using the contact functions on the Retiready page.
**If you have a financial adviser you should contact them as they’ll arrange ARC access on your behalf.
We’ll then set up your ARC online account and email you with your new login details.
Log into ARC 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) - which has useful information on how to make the most of the ARC digital service.
We initially set up the ISA as a cash facility, however, as this is a stocks and shares ISA you must choose the investments you wish to make.
You can access each fund factsheet before you invest, you’ll also be able to access the relevant Key Investor Information Document (KIID). These contain important information on each funds’ objectives, risk rating, asset allocation, charges and fund specific risks.
- Log into ARC using your username and password.
- Select your ‘Workplace Payroll ISA’.
- Select the fund or funds you’d like to invest in, using our investment list to make your selection. Please make sure you carefully read the KIID for each fund you’re interested in.
- Then select ‘maintain investment strategy’ as this will make sure your contributions are directed to your chosen fund/s until you decide to make an investment change.
Yes - 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. If you no longer work for the employer that set up your Workplace Payroll ISA, then you can use the top-up facility in ARC to start paying contributions, or increase contributions already set up.
2. Make a lump sum payment
You can pay a lump sum payment using the ARC online top-up facility.
3. Transfer in an ISA
If you have ISA savings from previous years elsewhere, you might want to consider moving these savings into your new ISA.
To change payments, make a single payment or transfer an ISA you’ll need to:
- Log into ARC.
- Select your ‘Stocks and Shares ISA’ from the ‘Breakdown’ window on the home page.
- Choose ‘Top-up’ and complete the relevant process you require.
Confirmation of your changes will be uploaded to your online document library.
Confirmation of a transfer will be uploaded to your online document library.
Any ISA transfer will be made in cash. During a transfer your ISA is not invested, therefore it will not be impacted by any market movements. 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.
You should be comfortable with the investment choices that you make as you may lose features, protections, guarantees or other benefits when you transfer. If you’re not sure, you should get financial advice - there may be a charge for this.
A transfer for consolidation purposes could be from one capital at risk stocks and shares ISA to another – so the value of your investments after any consolidation can still fall as well as rise and you may get back less than you invest.
Alternatively, the transfer could be from a cash ISA to our stocks and shares ISA. In this scenario you need to be aware that you’re transferring between two very different products.
Unlike money held on deposit as it is in a cash ISA, your money in a stocks and shares ISA is at risk; its value could fall as well as rise and you could get back less than you put in – so although our stocks and shares ISA has no fixed term, you should be prepared to hold your investment for at least five years – ideally longer.
Any new funds you move your money into will have their own set of risks that will be detailed in the fund information that will be available to you.