Isa Allowance

[smiley1]

Hi

Can anyone help me here. I put £20K into a cash ISA for 2020-21 last week not realising that this was the total allowance for all ISAS not just cash ones, the last time I invested there was one limit for cash and one for stocks/shares ISA and I had already taken a £100 per month stocks/shares ISA in June. I am therefore £900 over the ISA limit, what should I do, the cash ISA provider can't help. Thanks

[Buenchico]

Quote:
"If you accidentally pay into more than one in a year, don’t attempt to fix it yourself, as you may close the wrong ISA. Instead, call HMRC’s ISA helpline on 0300 200 3300 to get advice on what to do.

There is a similar process if you accidentally paid too much into an ISA (so more than £20,000 for an adult ISA, for example). HMRC will work out which ISA had the payment into it that breached the limit and will reclaim the money (including charging you for any tax owed)"

Source:
https://www.sharesmagazine.co.uk/article/watch-out-avoid-these-10-isa-mistakes-now

So now all you've got to do is to actually get through to someone on HMRC's phones. Good luck with that!
;-)

[davebro]

Do they actually check?

[Buenchico]

^^^ I doubt that any individual checks, Dave, but HMRC's computers might well be configured to throw up a red flag when the figures don't add up somewhere along the line. It's best to be up front with them from the start, rather than risk being accused of fraudulently paying in more than one's entitled to!

[smiley1]

Thanks I did try to ring them earlier but no response. I have also taken out a cash ISA for 2021-22 so have cancelled the payment into the stocks and shares one for this year

[bluemoon1]

I wouldn't bother ringing them, simply remove £900 from the cash ISA. That way, you've made a mistake, realised and rectified it all within a couple of weeks. I wouldn't even mention the mistake on any tax return.

[smiley1]

Thanks I am going to speak to the ISA provider tomorrow