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Whoops! 2 ISAs in one tax year!

My fault. My fault. My fault.

I've just realised that I put money inadvertently into two different Cash Isas in the last tax year.

What do I do? Help!

Comments

  • BruceyBonus
    BruceyBonus Posts: 1,143 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Contact the second provider and tell them the mistake.
    Then contact HMRC's ISA department (can't remember the number off the top of my head).

    The second ISA will be voided and you will have to pay the tax on any interest.

    If you don't contact HMRC, they will contact you, possibly in a few years time. HMRC do batch checks to ensure that people don't have more than one ISA from each tax year.
  • Charlton_King
    Charlton_King Posts: 2,071 Forumite
    I've been Money Tipped!
    The 'second' provider was actually opened two years before the one to which I contributed mainly last year. This is partly what led to my memory glitch. Will this complicate matters?
  • Baldur
    Baldur Posts: 6,565 Forumite
    The 'second' provider was actually opened two years before the one to which I contributed mainly last year. This is partly what led to my memory glitch. Will this complicate matters?
    See 'Getting Advice' here for the HMRC helpline info, as per BruceyBonus's post. They acknowledge that mistakes can happen, so should be able to help you to sort things out.
  • Charlton_King
    Charlton_King Posts: 2,071 Forumite
    I've been Money Tipped!
    A fascinating little post script to this one.

    I finally got through to the HMRC ISA helpline today and explained my little faux pas.

    Imagine my surprise when, having been asked whether I had ever done this before and responded in the negative, I was told:

    1. I would be allowed to keep the additional amount paid in and incur no loss of interest.

    2. It would have no repercussions for this year's allowance.

    All this on the basis that I had no previous 'record'. Apparently, they only go after serial offenders.

    I was ringing up to come clean and record my mistake but they weren't even interested in having my details.

    Draw your own conclusions. Certainly, I shall be having a quiet word with Mrs King as to how she can double her ISA input, at least as a one-off exercise...
  • Stompa
    Stompa Posts: 8,393 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Did the amount you contributed in total (across both ISAs) exceed the ISA limit?
    Stompa
  • Charlton_King
    Charlton_King Posts: 2,071 Forumite
    I've been Money Tipped!
    Stompa wrote: »
    Did the amount you contributed in total (across both ISAs) exceed the ISA limit?

    Er.... easily.
  • Mikeyorks
    Mikeyorks Posts: 10,380 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    I think the implied question was 'did you exceed the ISA limit of £7k (as it was last year)'? Which is why they may be apparently relaxed at a first offence (and directly reported to them).

    But they do not just pursue 'serial offenders'. If you read 12.34 / 12.35 & 12.35a on this link you will the guidance HMRC operate to. And which they could still hit you with once they merge the reports from all the ISA managers under your NI number. This is the 2008 pdf - the relevant cash ISA ISA figure for the critical bit of 12.35 is £3000 for last year.

    http://www.hmrc.gov.uk/isa/isa-guidance-notes-2008.pdf
    If you want to test the depth of the water .........don't use both feet !
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