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How much can you put in an ISA: ISA Allowance 2022/23

Contrary to popular belief, investing can be hassle-free. Instead of being overwhelmed by the different strategies and perceived complexity of the financial markets, you can maximise your returns by setting up a simple direct debit to your well-chosen ISA. But how much can you put into an ISA, what is the ISA limit 2022, and how much can you invest in each type of ISA? This Moneyfarm article will help you answer these questions.

How much should you invest in your ISA? – Summary Table

Do I need a large lump sum of money to start investing?Absolutely not! You can start even with a small amount
What do I need most?A long timeframe
Most important thing to rememberMake regular contributions to your investment
Annual ISA allowance 2022/23£ 20,000

As society gets increasingly time-poor, managing your finances can be pushed to the bottom of your to-do list due to the misconception that you need a large lump sum to start investing and the expertise to perfectly time your movements in the market.

Instead, regular investing can be an easy way to grow your money more efficiently, especially if you’re making the most of your ISA allowance.

Before the tax year ends on April 5th, now is the time to get your finances in order and consider investing in a stocks and shares ISA. You’ll be paired with an investment portfolio that’s built around your goals, with access to a dedicated consultant to help you make the big decisions.

How much can you put in an ISA?

How much you should invest in your ISA each year depends on the individual and their circumstances. However, every year, savers are allowed a maximum ISA annual allowance that they can save within the tax-free wrapper during the tax year period (April to April). The ISA allowance for the 2022/23 tax year is set at a maximum of £20,000, which can be split across the various types of ISAs, such as cash and stocks and shares ISAs, provided the combination does not exceed the ISA limit 2022/23.

Now that you know the answer to “how much can you put in an ISA”, please note that any unused allowance does not roll over to the following tax year, meaning it is lost forever if the maximum amount is not utilised. For anyone with the means, who is looking to save as much as possible for their future, it is important to be aware of the UK tax date deadline to ensure you’re getting the most out of your ISA portfolio, now and in the future.

Putting in more funds earlier in your investments’ life cycle sets you up for more significant potential gains down the line as these funds begin to work for you. To fully utilise your tax-free annual ISA allowance for the 2022/2023 tax year, make all contributions before the 5th April deadline next year.

The benefits of regular investing

Regular investment plans can take a lot of the hassle out of investing. You don’t need to decide when to invest, and you don’t need to time the market. All you need to decide is how much you want to invest.

Regular investing is simple, and it can have financial benefits over time. By averaging out the price of an asset, you can lower the total amount you pay for it during periods of volatility – this is called pound cost averaging.  We will explain it in more detail below.

There’s another simple way to grow your money; maximising your ISA annual allowance. How much you should invest in your ISA is up to £20,000 each year, and any growth in your money’s value and income can build up tax-free.

By protecting your money in a tax-efficient wrapper, you can keep all of your profit without handing more than you need to the taxman.

Regular investment plans for your ISA

How much can you put in an ISA a month? Well, if you’re looking to secure your financial future for the long term, we’ve developed three regular investment plans that are popular with investors looking to make the most of their annual ISA allowance. However, the ISA allowance 2022 could change in the future, and the government could increase or decrease it in line with policies that impact savers. That makes starting sooner rather than later all the more important.

Below, we’ve outlined what you could have by investing in one of these regular investment plans for 30 years. This is a long-term investment, but the benefits are clear to see.

We’ve assumed you will have invested in a balanced, diversified portfolio with 60% exposure to equities and 40% exposure to bonds.

If you’d started investing in this 60/40 model portfolio in 1990 and continued to today, your money would have grown by an annualised 7.49%. We’ve assumed this growth rate for our regular savings plans below, along with a more conservative 5% growth estimate.

Investing £400 a month

  • How much you’ll have with 7.49% annualised growth: £422,000
  • How much you’ll have with 5% annualised growth: £272,000

By earmarking £400 to your ISA each month, you can grow your ISA to be worth around £422,000 tax-free. This could be used to help your grandchildren get on the property ladder, fund your dream sabbatical, or provide extra income throughout retirement.

You must understand precisely how much you’re paying in fees before investing, as unnecessarily expensive charges can affect your return. In the calculations below, we factor in the impact of a 1% fee on your return, paid every quarter.

Moneyfarm’s fee structure is such that the more you invest with us, the less of a percentage you’ll pay in fees.

Investing £800 a month

  • How much you’ll have with 7.49% annualised growth: £843,000
  • How much you’ll have with 5% annualised growth: £545,000

To invest half of your ISA allowance each year, our £800 a month regular savings plan will do the trick.

ISAs are flexible, which gives you control over when you want to withdraw from your ISA in case of an emergency. Yet time has the power to influence your returns significantly. The longer you can invest, the more you can expect your investments to grow – although the value of your money can also fall.

By investing £800 a month for 30 years, you could have nearly £850,000, which will help secure your family’s financial future.

Investing £1,600 a month

  • How much you’ll have with 7.49% annualised growth: £1.7 million
  • How much you’ll have with 5% annualised growth: £1.1 million

To make the most of your full £20,000 ISA allowance, you should invest £1,600 a month. This amount will take your annual deposit to £19,200, leaving you with an extra £800 of your allowance to play with.

You can keep this in a cash ISA to increase your cash savings. It’s important that you keep at least three months of outgoings in an easily accessible savings account. This £800 won’t be enough on its own, but at least you can keep any return you get on your savings account protected from tax.

This could be a valuable addition to your pension income, as there are tax charges if you contribute over your standard lifetime allowance, which is currently £1,073,100.

Tax benefits of an ISA

ISAs are a simple way to grow your money in a tax-efficient manner. You can invest up to £20,000 in your ISA each year and watch your money grow within your tax-free wrapper, including any income you build up.

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As with all investing, your capital is at risk. T&Cs and ISA rules apply.

This investment can make a real difference over the long term and can be a powerful tool to help you reach your financial goals.

What type of ISA should I get?

There are a number of different ISA options available to help you protect your money, but the two main ones are cash ISAs and stocks and shares ISAs. Both play an essential part in financial planning, and you can find an accurate study of their performance over a ten-year period here.

Cash ISAs are great for savers with a short time horizon and those who want to take a limited risk with their money. But if you want to grow your money for the future, you can look to offset the impact of inflation on your savings with a stocks and shares ISA.

Stocks and shares ISAs allow you to invest in the financial markets, protecting growth in the value of your investments and any income from the taxman.

Each type of ISA has an ISA allowance limit. Regardless of the ISA limit 2022/23, choose the ISA that fits your financial needs and circumstances.

The ISA allowance

You can invest up to £20,000 into one ISA each year or split your allowance between a stocks and shares ISA, cash ISA, Lifetime ISA (LISA), and Innovative Finance ISA.

As it’s an individual allowance, partners can invest up to £40,000 yearly to benefit from the generous tax incentives.

You don’t have to use all of your £20,000 ISA allowance, just what you’re comfortable with. But, as you can’t roll it into the next tax year, it’s worth remembering you either use it or lose it.

If how much you can put in an ISA can exceed the ISA allowance, refrain from withdrawing the money. Instead, you should contact HMRC and explain the situation; they will reclaim the exceeded amount. However, you have to pay taxes on any amount above the £20,000 ISA allowance.

Annual ISA allowance for each type of ISA.

How much you can invest in your ISA depends on the type of ISA account. Stocks and shares ISAs and cash ISAs have an annual ISA allowance of £20,000 per tax year. Junior ISA, Lifetime ISA (LISA), and Innovative Finance ISA have different annual ISA allowances.

The ISA allowance for a Junior ISA is £9,000 per tax year. This ISA allowance is for junior cash ISAs and junior stocks and shares ISAs. You can only put a maximum of £4,000 into a Lifetime ISA each tax year.

The ISA allowance 2022/23 rule states that you can only put money into one of each type of ISA each tax year. For example, you can’t invest in two cash ISAs or two stocks and shares ISAs in the same tax year. If you realise that you have invested in two stocks and shares ISA in a tax year, you should contact HMRC.

HMRC will inform your account manager to refund the payment. However, you may have to pay taxes on income and interests that fall outside of your allowances. You can also withdraw the money, but ensure each action (paperwork) is well documented when HMRC comes calling.

Four tips to maximise your investments

Once you’ve set up your ISA, follow these four simple tips to make your money go further and help you reach your financial goals.


Time is your friend when it comes to investing for the future. Not only does it allow you to ride out short-term fluctuations in favour of long-term growth, but it also allows you to take on more risk with your money. The more risk you take, the more your money can grow – although your investments also have further to fall. When investing for your retirement, for example, time is a crucial factor.

Impact of fees

Remember that fees eat into your returns. Fees are a fact of life, but it’s important that you understand precisely what you’re paying for before you choose a provider. Expensive fees don’t always generate the returns they promise and make it harder for investors to make a profit. At Moneyfarm, you can enjoy low fees. We’ll never charge you over 1.04% all-in, allowing you to keep more of your money and make it go further.


There’s always a risk to investing; even keeping it in cash exposes you to the impact of inflation. Instead, you can manage the risk in your portfolio through diversification. You hope to offset any losses with gains made elsewhere in your portfolio by spreading your money across different investments, asset classes, and geographies.

Diversification can be expensive to get right, which is why exchange-traded funds are becoming increasingly popular, with investors wanting low-cost diversification.

Pound cost averaging

Another way to maximise your returns is to adopt a regular investing habit. If you have the means, you can invest up to the ISA limit 2022/23. When you invest, you want to buy an asset at a low price and sell it at a high price. But, unfortunately, it’s very difficult to time the market – even the professionals struggle – and this can weigh on your returns.

Luckily there’s an easy way to make your money go further. Investing regularly can smooth out the price you pay for an asset over time. This can lower the amount you pay for your investments during turbulent periods, maximising your returns.


Can I put 20k into an ISA each year?

Yes, you can put 20k into an ISA each tax year. The annual ISA allowance 2022/23 is £20,000.

What happens if I put more than 20000 in my ISA?

If you invest more than £20,000 in your ISA in a tax year, the excess amount will not be eligible for any tax relief. However, you can contact HMRC, or they will contact you at the end of the year to reclaim the money and charge taxes owed on the money.

How much can you have in an ISA in total?

You can save up to £20,000 per tax year. The 20k can be invested in one type of ISA account or split the amount across the four different types of ISA. But the total amount you can have in your ISA account can be more than £20,000.


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As with all investing, your capital is at risk. The value of your portfolio with Moneyfarm can go down as well as up and you may get back less than you invest.