Opened a second ISA by mistake and I don't know what to do?

[Deleted User]

Maybe you should be worried, because "ignorance is no defence" and it seems as though you are unsure of whether you have contributed to either of these ISA's this tax year.

I suggest therefore that your safest course of action is to close both of them immediately and wait until the new tax year before opening another.

badger09

Sleazy wrote: »

Maybe you should be worried, because "ignorance is no defence" and it seems as though you are unsure of whether you have contributed to either of these ISA's this tax year.

I suggest therefore that your safest course of action is to close both of them immediately and wait until the new tax year before opening another.

OP

Please ignore this suggestion. It is probably well meant, but it is not helpful.

Jlawson118

badger09 wrote: »

Until you find out whether you have paid into 2 cash ISAs since 6th April, no one can give you any reassurance.

However, even if you have paid into 2 cash ISAs by mistake, HMRC will not treat is as tax fraud.

According to my statements, there's been to transfers into this new account so I should be alright. But even if I did and I just can't see it, it won't be any more than say £20 or something. HMRC on the phone today didn't want to deal with it so at least I covered my back ringing them up in the first place so I should be off the hook.
I just want to start saving with my FD ISA again. I'm aiming for their £25 incentive with their Gold Card, I want to start with that, as well as saying a percentage of my wage in a few weeks into there

Jlawson118

Sleazy wrote: »

Maybe you should be worried, because "ignorance is no defence" and it seems as though you are unsure of whether you have contributed to either of these ISA's this tax year.

I suggest therefore that your safest course of action is to close both of them immediately and wait until the new tax year before opening another.

I know I have contributed to the First Direct one but it's just the Barclays one that I don't know about because my finances have been a little mixed this past month with bank switches and other expenses. It's not showing up on my statement so I'm 99% sure I've opened it but not contributed

BobQ

You are just creating confusion with your posts OP.

The rules are simple: you can contribute to one cash ISA in any tax year.

Most Cash ISAs once opened do not get closed until you chose to do so. The important thing is that you can only pay into a Cash ISA once in any tax year. Once it is opened you can have interest credited in subsequent tax years but if you pay in new cash in later tax years you cannot then pay cash into another cash ISA in that tax year.

Opening a second cash ISA in a tax year is not tax fraud. If you pay cash into it when you have already paid cash into another ISA account in that same tax year then that could be fraudulent if you do it deliberately. But do not worry if it is a genuine mistake, close the second account and write to the HMRC and tell them what you have done.

The point is that you can only have one ISA account into which you pay cash in each tax year. You can transfer that account to another provider but they need to do that, you cannot draw out the money yourself and credit it no the new provider.

Alter_ego

I paid the max into 2 cash ISAs in 2013, mistake.
I contacted HMRC, they said wait till they contact me.
They contacted me after 18 months, also contacted the second bank instructing them to close the ISA and send me the capital plus interest.
I was then responsible for declaring the interest for taxation purposes in the normal way.
Stop worrying!!!

Cornucopia

@OP, I think you are worrying about nothing. The amount of possible tax avoided (given paltry ISA rates) is minuscule. You also have HMRC on record saying that they are not bothered.

If you can establish the value of payments into both ISAs since 6 April, then you could come up with a figure for your remaining maximum investment for this year. If not, and it bothers you that badly, then don't invest any more until April 2017.

badger09

BobQ wrote: »

You are just creating confusion with your posts OP.

The rules are simple: you can contribute to one cash ISA in any tax year.

Most Cash ISAs once opened do not get closed until you chose to do so. The important thing is that you can only pay into a Cash ISA once in any tax year.

OP is not the only one causing confusion with their posts:cool:

The statement I've highlighted is incorrect.

BobQ wrote: »

But do not worry if it is a genuine mistake, close the second account and write to the HMRC and tell them what you have done.

Again, OP please ignore this advice.

badger09

Jlawson118 wrote: »

According to my statements, there's been to transfers into this new account so I should be alright.

More confusion because of sloppy typing OP:(

Do you mean 'two' or 'no'?

Jlawson118 wrote: »

I know I have contributed to the First Direct one but it's just the Barclays one that I don't know about because my finances have been a little mixed this past month with bank switches and other expenses. It's not showing up on my statement so I'm 99% sure I've opened it but not contributed

1) Do you have a statement for the Barclays ISA?
Yes or no?

2) Does it cover the whole period from 6th April 2016 to date?
Yes or no?

If the answer to 1) or 2) is no - then get one!

If the answer to 1) & 2) is yes:

3) Does it show any transactions between 6th April 2016 and the present date?
Yes or no?

If the answer to 3) is yes:

4) What are those transactions?

If the answer to 3) is no, this has been a lot of fuss over nothing, and I'd suggest you keep an accurate record of what you pay into each of your accounts. It would also make sense to close the Barclays ISA to avoid any potential mistakes in future.

Jlawson118

badger09 wrote: »

More confusion because of sloppy typing OP:(

Do you mean 'two' or 'no'?




1) Do you have a statement for the Barclays ISA?
Yes or no?

2) Does it cover the whole period from 6th April 2016 to date?
Yes or no?

If the answer to 1) or 2) is no - then get one!

If the answer to 1) & 2) is yes:

3) Does it show any transactions between 6th April 2016 and the present date?
Yes or no?

If the answer to 3) is yes:

4) What are those transactions?

If the answer to 3) is no, this has been a lot of fuss over nothing, and I'd suggest you keep an accurate record of what you pay into each of your accounts. It would also make sense to close the Barclays ISA to avoid any potential mistakes in future.

I got a final statement through the post today stating that I did actually put £20 in the ISA and a few days later I took it out, and that was it. Just those two transactions late September going in and early October coming out