Easy access ISAs

Brunokid

Ayr_Rage said:

slinger2 said:

Imvrasos said:

If the ISA is flexible and assuming you did not fund another after 5 April, you can still pay in 9k.

If the ISA is inflexible you have breached the 20k limit, contact the provider to offer repair advice.

It may be just me, but I find the above replies quite convoluted and confusing, to what appears to be a straightforward question.

This is incorrect. From April 2024 money withdrawn from a flexible ISA can only be returned to the same ISA, otherwise that part of the ISA allowance is lost. He used up £19k with the easy access account, so another £8.5 took him over the £20k limit. He's over the limit even if the easy access account is flexible.

@Brunokid I hope you are still following this and have now realised how it all works since the changes regarding Flexible ISAs this April.

@Ayr_Rage Understood 

mjstephens2001

Thanks for the replies. I have used the 14 day cooling off period to retrieve the money from the fixed rate ISA so I should hopefully be all good with the HMRC

I thought it was worth noting that the flexible ISA is with Zopa. I asked them how much I had left to invest this year, and they said £17.5k. When I asked how much I could invest with another provider they said I should speak to a specialist tax advisor - unfortunately (IMO) the rules/advice and clarity on the amount subscribed to an easy access ISA is not clear. I wanted them to tell me the maximum size of the pot that I had ever had this tax year, to know how much I could put in to another ISA elsewhere. Good job I have my own records!

flaneurs_lobster

mjstephens2001 said:

 I wanted them to tell me the maximum size of the pot that I had ever had this tax year, to know how much I could put in to another ISA elsewhere. Good job I have my own records!

But you might have had funds with a third ISA opened this tax year - Zopa cannot have any knowledge of how you have distributed your £20K of allowable funding. 

As you say, the liberalisation of the ISA rules this year have made it incumbent on individuals to keep track of their distributions.

mjstephens2001

But you might have had funds with a third ISA opened this tax year - Zopa cannot have any knowledge of how you have distributed your £20K of allowable funding. 

Agree, but my point was Zopa should be able to tell me the maximum size my easy access pot reached.

Archerychick

mjstephens2001 said:

But you might have had funds with a third ISA opened this tax year - Zopa cannot have any knowledge of how you have distributed your £20K of allowable funding. 

Agree, but my point was Zopa should be able to tell me the maximum size my easy access pot reached.

You should be able to see your balances shown in the app (unsure if there is a website too or not). I can see what the transaction amount is and the balance after it. You should be able to scroll to check through all your balances 

masonic

I agree with the OP on this one. Flexible ISA providers should be displaying two figures: the amount a customer can add to their ISA including flexible withdrawals, and the amount of allowance they have used (subject to the new high water mark). The situation could get complex if interest is added during the tax year.

jimjames

masonic said:

I agree with the OP on this one. Flexible ISA providers should be displaying two figures: the amount a customer can add to their ISA including flexible withdrawals, and the amount of allowance they have used (subject to the new high water mark). The situation could get complex if interest is added during the tax year.

Chip is one that adds interest monthly. With a transfer in as well it would be very difficult to track unless it was easy to view or a very round number added

saverkev

jimjames said:

masonic said:

I agree with the OP on this one. Flexible ISA providers should be displaying two figures: the amount a customer can add to their ISA including flexible withdrawals, and the amount of allowance they have used (subject to the new high water mark). The situation could get complex if interest is added during the tax year.

Chip is one that adds interest monthly. With a transfer in as well it would be very difficult to track unless it was easy to view or a very round number added

Chip shows the amount of allowance used in the chip account for the current year if you klik "add money "