Help...I've messed up!!

SINDYGIRL

Hoping someone can help...I opened a ysb fixed rate isa last week and transferred across £20000 from last year's Tesco isa...I had already used up my £20000 limit on a Nationwide isa for this year...when ybs contacted me to say the isa had been transferred in  from Tesco I noticed it was £27.52 short of £20000...when I rang Tesco they said it was because the isa which I had done a product switch the day before on and didn't even think about (too excited about a better interest rate with ybs) had incurred a charge because of an early withdrawal...so I thought I was being clever and made a card payment for £27.52 into the ybs saving making a grand total of £20000... about an hour later I realised that I have already used up this years £20000  limit and thos £27. 52 has taken me over but I thought I was just making up the £20000 from last year...am I in big trouble what can I do?

auser99

I dare say if you contact them and explain it ASAP they can just refund the 27.52 back with no harm done.

Would fall in the honest mistake category.

SINDYGIRL

Do I need to contact hmrc?

Doctor_Who

You're not the first and won't be the last to over subscribe to an ISA. It's a trivial amount compared to others I've seen mentioned on this forum. I would just contact YBS and explain it was an honest mistake. I'm sure they deal with things like this everyday!

SINDYGIRL

Can't believe I was so silly...I just thought that the original isa had £20000 in so I was making up the difference...

SINDYGIRL

I suppose I needed to think of it as old money versus new money

auser99

SINDYGIRL said:

Do I need to contact hmrc?

Just contact the provider you've accidentally added the 20 odd quid to, get them to sort it asap.
I dare say a few days of it being in the account as an honest mistake, without even benefitting from any interest, doesn't particularly need reporting back to HMRC.

Though if you're worried, you can just ask the provider when you explain it to them if you need to report it.

masonic

You never need to report something like this to HMRC. They will only go on official returns from ISA providers submitted after the end of the tax year in question. All HMRC can do is advise you that they'll contact you in due course if they discover an issue.

YBS will probably be unable to help, as HMRC instructs providers not to take any action when customers contact them about breaches of the ISA rules, although as the transaction would not yet have cleared, they might be able to stop it.

SINDYGIRL

The card payment I made was from my nationwide flex account...I asked them what they could do as ybs were shut...they said they would instruct visa to cancel the payment but it may be too late...I suppose I'll have to wait and see...if the payment goes in I thought I could just transfer it out but its a fixed 1 year isa so I can't withdraw anything