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Exceeded ISA Limit by £1?
Comments
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bigfreddiel wrote: »taking a guess at joe2cool's original post he has topped upan existing isa and accidentally gone over the allowanece by one pound -he's not opened a second cash isa like on poster seemed to hev surmised.
in this instance i would imagine the £1 will debited from the account and returned to the depositor.
or maybe the HMRC will get on to joe2cool and slap a huge fine and jail sentence on him - only kidding :-)
Thats right just the one ISA, not looking forward to jail though :eek:
Appreciate all helpjoe2cool0 -
Can you pay in £5340 twice and get to keep the whole amount ISA'd if you only do the 'mistake' once?
I dont know what the tolerance is but there is a tolerance. Its not one I want to test
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Cheers...............................joe2cool0
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Instead of worrying so much about what might happen, why don't you just call up the bank and take out the £1?0
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OK I just thought the bank might inform you & take out the excess perhaps.
How would the bank know??
He put in £5341 and the limit is £10680.
This is the responsibility of the individual no the bank because they do not have crystal balls or ESP and do not know whether you have a stocls & shares ISA.
The obvious common sense solution is simply to withdraw the £1.
I would be extremely suprised if the IR wanted to prosecute anyone if you withdraw the money, however if you knowingly take a tax benefit for 50 years even if small then surely that is morally wrong.
Surely it's common sense to just withdraw it.0 -
The cash ISA limit is £5,340. Whilst it is ultimately the responsibility of the individual to mke sure that they do not go over their allowance, all ISA managers are required to have in place systems that will reject and return any cash subscriptions over the Cash ISA allowance.How would the bank know??
He put in £5341 and the limit is £10680.
This is the responsibility of the individual no the bank because they do not have crystal balls or ESP and do not know whether you have a stocls & shares ISA.
No. It makes absolutely no difference. It will still be counted and reported to HMRC as a subscription. However, the lost tax is so small HMRC would not even bother chasing it. The postage of sending a letter would cost more than the lost tax, never mind the cost of officials time in dealing with it.The obvious common sense solution is simply to withdraw the £1.
I would be extremely suprised if the IR wanted to prosecute anyone if you withdraw the money, however if you knowingly take a tax benefit for 50 years even if small then surely that is morally wrong.
Surely it's common sense to just withdraw it.Did you really mean to put loose?
Lose: no longer possess, not to retain, unable to find
Loose: not firmly or tightly fixed in place0 -
The cash ISA limit is £5,340.
Oops, sorry I got that completey the wrong way round didn't I.
The S&S limit is £10680.all ISA managers are required to have in place systems that will reject and return any cash subscriptions over the Cash ISA allowance.
That may be the case.
They do not seem to do that in practice e.g. when you transfer the information does not get passed on. I have seen this myself for many years.
So you cannot rely on them doing it.
Maybe they should, but in recent years, they have not all being doing this.It makes absolutely no difference.
So you think in a (theorectical) prosecution, someone that recognised their mistake and withdrew would be treated the same as someone that claimed they didn't notice???
I am not a lawyer, but I knwo that ignorance is not a defence.
Of course for £1 it's not going to be chased.
But for a larger amount I think it would make a difference if you just left it in rather than withdrawing.
Of course we'd need the opinion of a tax lawyer on that.0 -
The get out of jail free card approach I have seen on dual ISAs that exceed the allowance. If its a single ISA then the bank may act and they tend to be more exact in their approach to the rule.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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Hi it looks like I've exceeded the ISA Cash limit by £1,what will happen?
Thx
My daughter exceeded her's by a couple of thousand 2-3 yrs ago, in error of course, and Barclays (ISA provider) just returned the cheque pointing out her mistake.
Why not ring your provider and ask if they can pay it back as you made a mistake in your calculations!
Good Luck0 -
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