One of my ISA providers has misreported to HMRC

badger09

innovate wrote: »

Good point about the interest, hadn't thought of that! So perhaps this should sit in the Santander ISA, although the OP says "I can't get anything online from Santander because the account is closed". So this needs clarifying by the OP and his banks.

But it was apparently 2011/12 subscription which was transferred in 2011/12 - so it would all, including interest, have to have been transferred. If it was done properly I mean

MartinSpoon

Whilst I can't prove otherwise, I'm 99% sure I requested an ISA transfer, not a withdrawal and deposit - I know the rules well, and I would not have knowingly made that mistake. I explained the nature of the the problem to the person at Virgin Money (over subscription to an ISA), they acknowledged they understood, that the funds were transferred in, and that Santander should not have report the £4200 to HMRC. They also said they've seen a few problems like this from Santander.

Re the point about interest... I transferred in more than £4200, it was another year's savings plus interest, but £4200 was the contribution made in FY 11/12 whilst it was with Santander. And now that I think about it, that's the evidence that there's a mistake somewhere! If I had "deposited" the full amount (approx. £6k) with Virgin, then surely that figure would have appeared in my HMRC letter. Instead, it only shows the figures relating to the 11/12 contributions.

So...

£4200 saved with Santander in 11/12
£6000 (approx) total in Santander account before transfer (includes savings from 10/11).
Transfer full amount to NR
Deposit additional £600 in that tax year once in NR.
Total in NR account at end of year £6600.

HMRC letter shows £4200 deposited with Santander, £4800 with NR.

MartinSpoon

If anyone is interested, just got an email back from HMRC;

"From the information they have now provided I can agree you did not put money into a disallowed combination of ISAs in that tax year ... It appears that the information we originally received was incorrect on this occasion."

Not sure what, if anything, they received from either provider in the last 24 hours, but at least it's resolved :-)

badger09

MartinSpoon wrote: »

If anyone is interested, just got an email back from HMRC;

"From the information they have now provided I can agree you did not put money into a disallowed combination of ISAs in that tax year ... It appears that the information we originally received was incorrect on this occasion."

Not sure what, if anything, they received from either provider in the last 24 hours, but at least it's resolved :-)

Thanks for the update and I'm glad you've got it sorted.

Would be interesting to know which provider made the booboo though - my money would be on Virgin (though I was wrong before - sorry:o)

innovate

I wouldn't put it past the HMRC to have mis-understood what has been reported. There are so many people who do not understand the cash ISA transfer rules.

badger09

innovate wrote: »

I wouldn't put it past the HMRC to have mis-understood what has been reported. There are so many people who do not understand the cash ISA transfer rules.

No sh*t Sherlock :rotfl:

MartinSpoon

I'm also curious about who was to blame.. the only other bit of information I have is that after calling Santander and asking them to look into it, I received a text message with my 'case number' and information on getting updates. I haven't spoken to them since, but I have since received another text this morning saying 'your case is now closed', so suggest Santander have done /something/.

jamiex

It was Santander to blame...once an ISA is transferred away from a provider, they should not report any contributions in that tax year. The new provider reports contributions.

innovate

My money is still on the HMRC not knowing what to do with reports by the banks.

ponbeam

Wouldn't both banks report the deposits? At the times they were made?