Overpaid Stocks and Shares Isa

[Deleted User]

I've read all the threads on this but can't decide what to do.
I have two Stocks and shares Isa's. 
I have mistakenly paid £1500 extra into the current tax year. I paid £20000 into one account and with another company paid £1500 by mistake.
I am obviously over the allowance.
Any advice on the best thing to do? Presumably said companies report to the authorities and I will get a letter down the line?
What would happen if i removed the overpaid £1500 in the one account?
Advice appreciated.

eskbanker

There isn't anything you can do now to change the fact that you oversubscribed to an invalid combination of ISAs, unless you're still within the cooling-off period for one of them?  Both providers will report to HMRC after year end and in due course they'll decide if any action is warranted - in general it's the second one that you paid into that'll be deemed to be invalid, so which order did you pay in?

[Deleted User]

eskbanker said:

There isn't anything you can do now to change the fact that you oversubscribed to an invalid combination of ISAs, unless you're still within the cooling-off period for one of them?  Both providers will report to HMRC after year end and in due course they'll decide if any action is warranted - in general it's the second one that you paid into that'll be deemed to be invalid, so which order did you pay in?

Thanks for the reply.
When you say cooling off period I'm presuming you mean 14 days? If that's the case then no I'm not in the cooling off period.
I put £20k over a few months in one provider and then later in the year with the other provider I added £1500 into my ISA instead of my trading account by mistake.

DireEmblem

I would just sell/withdraw your 1500.  If you're not over your capital gains allowance then don't worry about it any more.

[Deleted User]

DireEmblem said:

I would just sell/withdraw your 1500.  If you're not over your capital gains allowance then don't worry about it any more.

The annoying thing is its cash sat in the ISA, I haven't even invested it. I'm not over my capital gains allowance.
My broker is making out it's the 'crime of the century' and I must contact HMRC immediately.
Quite happy to withdraw the £1500 as long as it's the best thing to do.

dunstonh

Just wait until HMRC write to you in 18-24 months time.   For minor errors, they just tell you not to do it again and you use up your one error per NI number.

My broker is making out it's the 'crime of the century' and I must contact HMRC immediately.

Broker as in an individual or as in firm?   If firm, is it a broker at the firm or a clerical/call centre worker? (just trying to gauge the likely knowledge level olf the person involved)

[Deleted User]

dunstonh said:

Just wait until HMRC write to you in 18-24 months time.   For minor errors, they just tell you not to do it again and you use up your one error per NI number.

My broker is making out it's the 'crime of the century' and I must contact HMRC immediately.

Broker as in an individual or as in firm?   If firm, is it a broker at the firm or a clerical/call centre worker? (just trying to gauge the likely knowledge level olf the person involved)

Thanks for your reply.
Yes it's just a clerk at the firm. Just got on my nerves.

[Deleted User]

Another question if anyone could help please? Can I now move £20k out of my trading account into the ISA with my new allowance from the 6th April?(There would be gains in amongst that £20k if it makes any difference). Thanks

Voyager2002

Deleted_User said:

My broker is making out it's the 'crime of the century' and I must contact HMRC immediately.

You might try telephoning HMRC: their call centres are busy but if you call at an unusual time (8 on a Saturday morning) you might get through straight away. Be sure to ask the HMRC clerk to make a note on your file.

epg200

you can move money from a trading account to your ISA but (with my provider at least) it has to be cash. Even if you could transfer shares you would still have to pay any capital gains tax you've accrued.

[Deleted User]

epg200 said:

you can move money from a trading account to your ISA but (with my provider at least) it has to be cash. Even if you could transfer shares you would still have to pay any capital gains tax you've accrued.

OK thanks.