exceeded 20k ISA limit by mistake

moneysaver2x

hi,
i have a 20k cash isa maxed out for this tax year
i have recently opened a stock isa and have £400 invested in it.
so, i've just learned i've exceeded my 20k annual allowance
what can i do now?
as we are coming to the end of this tax year, can I just keep the opened stock isa and use it for the 20-21 tax year?

colsten

You have broken the rules, as you know. If it's the first time you have done it, and since it's a minor amount, you are likely to get no more than a finger-wag from the HMRC, with a warning to never do it again, when and if they find out about it, which could be many months in the future. If you want to be on the safe side, close that ISA now, and start a new ISA on or after 6/4/2020. A slightly riskier option would be to keep it, and to add further funds to it.

marlot

I accidentally opened two ISAs one year (it was supposed to have been one for me, one for wife but I mucked up).  I got the provider of the second ISA to reverse everything out and refund the money.
I did ring HMRC and they made a note - but I experienced no other consequences.

wmb194

Assuming this isn't just another troll post, the cops aren't coming knocking for going £400 over in a year. Worst case the S&S Isa will be converted into a taxable account and you may have to pay a c.£25 fee to the provider for it having to 'void' it. Why would you worry though? You say you have £200k in cash.

JustAnotherSaver

wmb194 said:

 Why would you worry though? You say you have £200k in cash.

Wheres_My_Cashback

wmb194 said:

Assuming this isn't just another troll post, 

Judging by the OPs other posts elsewhere it's an absolute cert !

worldtraveller

marlot said:

I accidentally opened two ISAs one year (it was supposed to have been one for me, one for wife but I mucked up).  I got the provider of the second ISA to reverse everything out and refund the money.
I did ring HMRC and they made a note - but I experienced no other consequences.

I did very similar a couple of years ago and phoned HMRC to fess up to my honest error.

They probably noted it at the time, and I made a diary note of the call, but I didn't hear anything further from them. They didn't tell me to do anything like take the funds out, or close any accounts, but it wasn't anywhere near the maximum ISA limit.

As anything like this, IMHO it's probably best to be honest and let HMRC know, rather than try to hide it, and have the possibility of having it come to light later and maybe cause a bigger issue.