whats to stop me having 2 isas in one year

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
22 replies 2.2K views
markusmarkus Forumite
28 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
im not planning on doing anything illegal but ive just noticed something.

i opened a barclays tax beater mini cash isa with 3k , we all know how slow they were , and the opening day shows as the 8th april , i opened it on the 20th march approx

ive now opened another isa , and ive had it around 2-3 months , opened end april i think

no one has said anything , so it makes me wonder that although we all declare our ni number and details , do they really check

any thoughts
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Replies

  • jem16jem16 Forumite
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    If you opened the Barclays one on 20th March this would be counted as an 06/07 ISA even though Barclays took so long to open it.

    Your other ISA is an 07/08 ISA so different tax years.

    HMRC would eventually catch up with any double or more ISAs opened in the same year.
  • markusmarkus Forumite
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    hmrc ? , surely they would need massive staffing levels to check everyone , and what are the penalties ?
  • jem16jem16 Forumite
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    Your NI number links through to HMRC's(Inland revenue) computers. Eventually it would be flagged up on the system.

    Your subsequent ISAs would have their tax-free status removed and would be liable for tax as normal.
  • masonicmasonic Forumite
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    markus wrote: »
    hmrc ? , surely they would need massive staffing levels to check everyone , and what are the penalties ?
    As Jem says, HMRC don't need massive staffing to cover this as the ISA providers report all the information that they need to them. They just need to check their database for duplicates periodically and recover any tax that should have been paid.
  • dunstonhdunstonh Forumite
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    The NI check is mostly computerised and they do find out and will recover tax owed. It can take up-to 18 months as the data isnt instantly available to the HMRC but you would be found out.
    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.
  • vnicevnice Forumite
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    yes but what if someone does nt give them ni no. or just says i have no ni number on the form and signs?
    how will anyone find out if you open 2 isas like this and the providers dont challenge you?
  • dunstonhdunstonh Forumite
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    vnice wrote: »
    yes but what if someone does nt give them ni no. or just says i have no ni number on the form and signs?
    how will anyone find out if you open 2 isas like this and the providers dont challenge you?


    You cannot open an ISA without supplying an NI number.

    Any attempt to get round that could be considered fraud.
    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.
  • bandraoibandraoi Forumite
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    I wouldn't expect them to catch a duplicate isa till at least the end of the tax year.

    If they check now, they'll have to check again in a few months to make sure new cheats haven't entered the system. If they wait til April when no more 07/08 ISAs can be opened and they have all the information, they can run it through the cross check system and catch everyone in one go.

    Logically you've got till at least April before you get caught, the delay in catching you won't be much of an advantage in paying the penalty though.
  • vnicevnice Forumite
    7 Posts
    but on the isa form there is a place where it says i dont have ni number, so you could tick that and send it off.
  • dunstonhdunstonh Forumite
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    And they will have to look into why you dont have an NI number before they set it up. The tick box requires action to be taken.
    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.
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