Paid too much into ISA

MORPH3US

Hi guys,

Two days ago I sent £1300 of my savings from my current account to my ISA.

I logged in to my ISA the following day and to my horror noticed that I am only allowed to pay in another £1100 this year

Obviously I can't stop the £1300 now so I am going to have paid in £200 more than I am allowed to... :eek:

Can anyone tell me what will happen with this?

mr_fishbulb

Think you need to phone up the HMRC and tell them what has happened.

ses6jwg

You'll probably get a slapped wrist and tell you not to do it again but I doubt there will be serious implications.

MORPH3US

Have contacted the bank and explained what has happened, waiting for them to get back to me.

Mikeyorks

If you're under the overall £7200 you're allowed (or £10200 .. if over 50) for the year ..... zero action required.

HMRC will write to you in due course telling you not to do it again (but it's going to be a bit rampant this year with the self inflicted Govt mayhem on the allowance changes ... so £200 may be below their threshold for 10-11?). You could head them off at the pass by ringing the ISA Helpline .... but as I doubt they'll be getting on their horses to come and get you ..... I wouldn't bother.

The Bank may offer to simply give the £200 back ... in which case you have to accept it as you've alerted them. But if they don't get back ... ignore it?

Stompa

http://www.hmrc.gov.uk/ISA/faqs.htm#16

nikki2804

My bank always told me they would just isue a check with the overpayment back to me. Not that I ever managed to save more than I was allowed unfortunately!

MORPH3US

Thanks guys, just called the helpline and he said was there any "cooling off or cancellation period".... i've never heard of an ISA with one of those so very strange..

Anyway he said if not and if its only a small amount then don't do anything and wait to the end of the tax year and they will send me a letter with any "adjustments" on... not sure I trust this advice to be honest though... "just wait and see" doesn't reassure me too much.

dazeruk

Who is the ISA with?

When I transferred my ISA to NatWest, I was forced to open a savings account to go along side it. I was told that any over payments into my ISA would be directed to the savings account.

Mikeyorks

MORPH3US wrote: »

Anyway he said if not and if its only a small amount then don't do anything and wait to the end of the tax year and they will send me a letter with any "adjustments" on... not sure I trust this advice to be honest though... "just wait and see" doesn't reassure me too much.

Don't worry about it. If you're under the overall limit of £7200 (or £10200 depending upon age) they're not going to penalise you in any way. In fact I doubt you will hear further from them ... as this year is going to throw up a lot more anomalies than usual and they'll likely set a de-minimis to take action on. £200 is likely to be under that.

A few ISAs do have a cooling off period .... but only in their first 14 days.

Baldur

dazeruk wrote: »

When I transferred my ISA to NatWest, I was forced to open a savings account to go along side it. I was told that any over payments into my ISA would be directed to the savings account.

That appears to be an idiosyncrasy of NatWest's rather than the norm - none of the (many) providers with whom I have held Cash ISAs since the scheme began in 1999 have ever stipulated that such an account had to be opened.