ISA secret ‘almost nobody knows’ that can save you thousands

A lad with a penchant for making profits reckons he has stumbled across a little-known trick which could leave you thousands of pounds better off.

According to professional trader Michael Taylor, all you need is a flexible ISA and a few quid to play with.

He claims to have found something of a loophole which could help people who have got 'unused allowance' that they want to carry over into the new tax year.

So, you've heard of an Individual Savings Accounts, or ISAs for short. But what difference does it being flexible make?

You can save up to £20,000 in these babies per tax year - which runs from April 6 to April 5 the following year - whether they are flexible or not.

However, if it is a flexible one, you can withdraw the funds and replace them in the same tax year without causing a fuss.

As Money Saving Expert (MSE) explains, normal ISAs penalise you for doing this sort of thing, as 'every deposit counts as using up your allowance'

The website states: "For example, if you pay £1,000 into a non-flexible ISA and then withdraw £900, your balance may be £100, but your ISA allowance has still been deducted by £1,000 – so you can save a further £19,000 until the limits reset. However do the same in a flexible ISA and you'd be able to save a further £19,900. It is essentially a feature that prevents savers from being penalised if they need to access their savings."

According to the MSE, you're a good candidate for a flexible ISA if you reckon you can easily save up the £20,000 annual allowance and 'will be withdrawing frequently throughout the tax year'.

In a recent post on his Instagram account, Taylor told his 242,000 followers that he had a tip which 'almost nobody knows' about ISAs.

"It’s called the ISA rollover," he explained.

"If you are using a Flexi-ISA - and it absolutely has to be a Flexi-ISA - and you’ve got unused allowance and want to carry this over into the new tax year..."

Well, if that sounds like you, Taylor reckons you should take heed of this advice.

He continued: 'Let's say you’ve got £10,000 of your allowance left on the last day of the tax year that you want to carry over.

"You would simply put in £10,000, so you would max out that allowance....then, roll it over into the new tax year, and then withdraw that £10,000.

"So essentially, you will keep it in overnight for one day. Then, in the new tax year, you would have your new £20,000 allowance - plus that £10,000 that you can replenish within that same tax year."