Santander has charged tax on my Cash ISA..

sjw1

Both my wife and I had a cash ISA with Santander for 2010 that finished this March.
I opted to transfer mine to a 2 year 3.7%. However, my wife, when transferring her one noticed that tax had been taken from the interest. I checked and it been taken from mine too.
She called to transfer hers and told them about the tax. They didn't know why and said they would investigate and call back. Well, that never happened..
I just called to tell them about the tax on my account. He asked if I had any other ISA - and told him I do have a Stocks/Shares ISA with another provider. He said that was the reason - I could only have one ISA a year. I explained that I thought I was allowed a separate stocks and shares one and it shouldn't affect the Cash one - as long as I was within the limits... Worryingly, he didn't think that was the case - but I mentioned that my wife has no other ISA at all - and had been charged tax too...
He then put me on hold and came back and said they'd investigate....
He also mentioned ME claiming back the tax via an R85 form from the tax office?
And my wife needs to call again because, obviously he can't discuss her details with me..
Any ideas folks?

Baldur

Typical Santander 'customer service'.

I'd suggest that you and your wife both make formal (preferably written) complaints, as this is clearly an error on Santander's part - http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&c=Page&canal=CABBEYCOM&cid=1210607166846&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateA2

rb10

You CAN have a cash ISA and a Stocks and Shares ISA in a tax year - that's not the reason.

You can't use an R85 to claim the tax back ... Santander will have to put it back into your account themselves.

sjw1

rb10 wrote: »

You CAN have a cash ISA and a Stocks and Shares ISA in a tax year - that's not the reason.

You can't use an R85 to claim the tax back ... Santander will have to put it back into your account themselves.

What I thought too - so everything they told me was wrong..:mad:

Baldur

sjw1 wrote: »

What I thought too - so everything they told me was wrong..:mad:

Yes, that's why I suggested the written formal complaint process.

ses6jwg

Hi there, I had this happen to one of my customers that I deal with, first time I've ever seen it happen so it must have been a processing error.

I sent a request up to the Cash ISA team in Head Office and they did an interest adjustment, it took about a week, so might be worth talking to a branch about it before making a formal complaint as they should get it resolved for you.

Alter_ego

What will Santander dream up next? Complain loudly and as high as possible!

brewerdave

sjw1 wrote: »

I just called to tell them about the tax on my account. He asked if I had any other ISA - and told him I do have a Stocks/Shares ISA with another provider. He said that was the reason - I could only have one ISA a year. I explained that I thought I was allowed a separate stocks and shares one and it shouldn't affect the Cash one - as long as I was within the limits... Worryingly, he didn't think that was the case.

Isn't it depressing that, after all these years of S & S ISAs and cash ISAs, Customer "service" advisors STILL can't get it right!!:(

TREVORCOLMAN

brewerdave wrote: »

Isn't it depressing that, after all these years of S & S ISAs and cash ISAs, Customer "service" advisors STILL can't get it right!!:(

If they dont understand the rules what chance has the average punter?

sjw1

Just a quick update - I mailed (through the post) Santander last week - one leter for myself and the wife wrote one too. Got replies within the week apologising for both issues with cheques for £30 each.
Shame it took the hassle of writing a letter - but not a bad result I feel..??...

le_loup

Ah! Not as good as you think. They should have transferred the money to the new ISAs, not given you cheques. You have now lost the tax advantage in the interest.