ISA Allowance

MikeyDay

Hello guys,

Either I've got a problem with my ISA allowance, or I'm just confused. 

So, I've got a LISA with MoneyBox, which I have put £4000 in, I also have a Cash ISA with Coventry Building Society which has £16,000. So that would assume I've used my £20,000 allowance, but in my Coventry Building Society ISA it says

Annual Allowance used

£16,000.00

Flexible ISA allowance 

£0.00

Total you can pay in 

£4,000.00

2022/23 annual ISA allowance

£20,000.00

Current year's funds allowed

Yes

Previous year's funds allowed

Yes

Is this normal? Or should Coventry Building Society be detecting that I've used £4000 in my MoneyBox ISA?

I just don't want to waste any remaining allowance I might have, since the financial year is coming up.

Thanks.

eskbanker

MikeyDay said:

Or should Coventry Building Society be detecting that I've used £4000 in my MoneyBox ISA?

No - ISA providers have no visibility of contributions made to other providers, so if you're funding multiple ISAs concurrently then it's up to you to monitor that total subscriptions are within the £20K annual allowance.

refluxer

The Coventry won't know about the £4k with Moneybox and you have used up your allowance if both your £4k LISA and £16k Cash ISA payments have been made during the current tax year ?

From this MSE article...

"The overall ISA limit is £20,000 in the 2022/23 tax year. You are allowed to split this between a LISA (up to the maximum £4,000) and put the remainder in a cash ISA, stocks & shares ISA and/or an innovative finance ISA (for peer-to-peer investing) in the same tax year." 

Edit - sorry Eskbanker, our posts crossed. I do wish MSE forum threads would update in real time to avoid this ! 

MikeyDay

eskbanker said:

MikeyDay said:

Or should Coventry Building Society be detecting that I've used £4000 in my MoneyBox ISA?

No - ISA providers have no visibility of contributions made to other providers, so if you're funding multiple ISAs concurrently then it's up to you to monitor that total subscriptions are within the £20K annual allowance.

Ah ok, that sums it up then, I'll have to wait for the next financial year to put more in, just out of curiosity, if I did put more in, will they just put the money back into my account? or will I be getting of phone call from the taxman?

eskbanker

MikeyDay said:

eskbanker said:

MikeyDay said:

Or should Coventry Building Society be detecting that I've used £4000 in my MoneyBox ISA?

No - ISA providers have no visibility of contributions made to other providers, so if you're funding multiple ISAs concurrently then it's up to you to monitor that total subscriptions are within the £20K annual allowance.

Ah ok, that sums it up then, I'll have to wait for the next financial year to put more in, just out of curiosity, if I did put more in, will they just put the money back into my account? or will I be getting of phone call from the taxman?

HMRC will usually forgive a first time offence but reserve the right to instruct the provider to reverse an invalid subscription.

MikeyDay

refluxer said:

The Coventry won't know about the £4k with Moneybox and you have used up your allowance if both your £4k LISA and £16k Cash ISA payments have been made during the current tax year ?

I tried doing a lot of research before posting this, I read that quote a few times, I was just confused why I still have £4000 allowance remaining, but you guys have summed it up for me, thanks! Yes, all the money I have in the accounts are all from this current tax year. Thanks for helping me out!

Alexland

MikeyDay said:

Ah ok, that sums it up then, I'll have to wait for the next financial year to put more in

Next personal tax year starting 6th April

MikeyDay said:

or will I be getting of phone call from the taxman?

Worse, they visit and read out all the ISA rules in a loop until you remember them all.