Overpaid my ISA in 23/24 by accident...

Kildare

Hi - hoping someone can help with this! In 2023/24 I have accidentally overpaid my £20k ISA allowance by £100.

I had £1000 in a Nutmeg S&S ISA for the 22/23 tax year, this was to get the £100 bonus they were offering to Chase customers at the time. I didn't realise that in July 2023 this was paid into the Nutmeg ISA, I thought it was sitting in a separate non-ISA pot.

In January 2024 I paid £20k into a fixed ISA thinking that was the only contribution I'd made for the 23/24 tax year, so I'm now £100 over the allowance which I've only just spotted when sorting out my 24/25 ISA.

Does anyone know what I need to do to correct this or will this be ignored as first time this has ever happened? Thanks!

eskbanker

If you only paid £20K in total into your ISAs then you're all good, although even if that wasn't the case, there wouldn't be anything you could do about it after the end of the tax year, and you'd just need to wait for any contact from HMRC, who will generally forgive first-time 'offenders'....

Edit: @masonic posts below with more detail about the scheme, from first hand experience.

Kildare

eskbanker said:

If you only paid £20K in total into your ISAs then you're all good, although even if that wasn't the case, there wouldn't be anything you could do about it after the end of the tax year, and you'd just need to wait for any contact from HMRC, who will generally forgive first-time 'offenders'....

Thanks, it wasn't new money from me, it was bonus given to me by Chase/Nutmeg as part of the promotion of depositing in the previous tax year so hopefully that won't count!

masonic

It would have counted as a subscription. One reason why I took up the promotion by opening a general investment account. They had to pay it outside the ISA for those who used their full allowance that year. Most likely HMRC will eventually write to you telling you not to do it again and no further action will be taken.

Kildare

Is it best to wait for HMRC to contact me rather than trying to reach out to them?

eskbanker

Kildare said:

Is it best to wait for HMRC to contact me rather than trying to reach out to them?

If you contact them (not a painless process in itself!) then they'll just tell you to wait anyway - they receive annual submissions from all ISA providers and undertake an extensive compliance exercise, after which they'll contact those in breach, but won't do anything outside of that....

Valley73

I did exactly the same. The £100 bonus went into an unallocated pot. I xferred it back to my Chase account. I checked my Nutmeg account and under ISA subscriptions for 23/24 £0. So unless you added the £100 to your ISA pot you should be fine.