ISA rules inadvertantly broken...??

Bluebird123_2

Hi


I believe that I have inadvertently been paying in to two cash ISAs in the same tax year (they were opened in different years). I have now stopped payments into both.


Is this a huge problem?


I am thinking of consolidating them into one cash ISA but the top Nationwide rate is less than I am getting on an E-ISA I have already. Perhaps I could transfer one of the old ISAs into the other old E-ISA for the best rate?


Thanks for any advice

Lokolo

At the end of the tax year HMRC will receive information from the providers. You will then receive a 5 figure fine or a prison sentence.

Lokolo

In all seriousness, naughty naughty, HMRC will slap you on the wrist with a warning. But you will be fine as long as you also do not go over your limit. It might work out OK if you consolidate them.

I wouldn't worry too much, just be careful in the future.

Archi_Bald

If both your ISAs are with Nationwide, it shouldn't matter. Nationwide are one of the few providers that can manage your annual allowance across several of their ISA accounts.

JGal

Archi_Bald wrote: »

If both your ISAs are with Nationwide, it shouldn't matter. Nationwide are one of the few providers that can manage your annual allowance across several of their ISA accounts.

I thought you could only pay into one cash ISA in a financial year http://www.hmrc.gov.uk/isa/faqs.htm#8

Gromitt

JGal wrote: »

I thought you could only pay into one cash ISA in a financial year http://www.hmrc.gov.uk/isa/faqs.htm#8

Correct, unless you have certain ISAs with Nationwide, then you can have multiple ISAs with the same provider.

JGal

Gromitt wrote: »

Correct, unless you have certain ISAs with Nationwide, then you can have multiple ISAs with the same provider.

?

"Q. How many ISAs can I have?
A. There are limits on the number of ISA accounts you can subscribe to each tax year. You can only put money into one cash ISA and one stocks and shares ISA."

innovate

JGal wrote: »

?

Nationwide can manage your annual deposits with them across several of their cash ISA products. Not sure why you would want to split your allowance this way but if you want to, you can.

One or two other Building Societies do similar but most cash ISA providers don't.

masonic

JGal wrote: »

?

"Q. How many ISAs can I have?
A. There are limits on the number of ISA accounts you can subscribe to each tax year. You can only put money into one cash ISA and one stocks and shares ISA."

The provider is able to class all of your deposits with them to be held in one ISA account if they wish to do so. The ISA is just the tax-free wrapper - how the money is structured within it isn't relevant.

Hominu

masonic wrote: »

The provider is able to class all of your deposits with them to be held in one ISA account if they wish to do so. The ISA is just the tax-free wrapper - how the money is structured within it isn't relevant.

Which is exactly how S&S ISA's work - I have several accounts inside an ISA wrapper, but only a single ISA.

So it's the same with Nationwide and a few other BSs - multiple accounts inside a single ISA.