Exceeding 20k ISA limit

tomhuk

Hi all,

I've accidentally exceeded the 20k limit by having a DD into a LISA account whilst also having a cash ISA elsewhere. 

Can anyone explain what HMRC are going to do? Do I need to let my ISA provider(s) know?

It was totally accidental. When depositing money earlier in the tax year I forgot to think ahead to what the DD would add up to. 

Thanks 

Slinky

How much is it?  I forgot to cancel a standing order into a S&S Isa and deposited either £600 or £1200 into that, in addition to the £20K I put in a cash ISA. I told my financial adviser about it, and he said just cancel the SO and see if anybody notices. Nobody did, this was a couple of years ago.

Middle_of_the_Road

tomhuk said:

Hi all,

I've accidentally exceeded the 20k limit by having a DD into a LISA account whilst also having a cash ISA elsewhere. 

Can anyone explain what HMRC are going to do? Do I need to let my ISA provider(s) know?

It was totally accidental. When depositing money earlier in the tax year I forgot to think ahead to what the DD would add up to. 

Thanks 

I would contact your LISA provider and explain what happened. They might have a solution that corrects the situation.
If HMRC do notice, you might get told not to repeat your mistake.

masonic

Standard advice is to do nothing and wait for HMRC to contact you (if they do).

There is no point contacting the prividers, they are instructed not to take any action by HMRC, because they are not in possession of all of the facts and will not know what action HMRC will deem appropriate.

Most likely you will be told not to do it again, but no action will be taken for your first offence.

TheSpectator

masonic said:

Standard advice is to do nothing and wait for HMRC to contact you (if they do).

There is no point contacting the prividers, they are instructed not to take any action by HMRC, because they are not in possession of all of the facts and will not know what action HMRC will deem appropriate.

Most likely you will be told not to do it again, but no action will be taken for your first offence.

Standard advice from where?

Googling suggests advising provider and contacting HMRC on 0300 200 3300

masonic

TheSpectator said:

masonic said:

Standard advice is to do nothing and wait for HMRC to contact you (if they do).

There is no point contacting the prividers, they are instructed not to take any action by HMRC, because they are not in possession of all of the facts and will not know what action HMRC will deem appropriate.

Most likely you will be told not to do it again, but no action will be taken for your first offence.

Standard advice from where?

From HMRC's guidance to ISA managers.

Yes, people can waste their time getting the answer I've provided from those channels, but there is no benefit to doing so.

Ultimately, no action should be taken based solely on information provided by the investor that cannot be verified. A single ISA manager will never know what has been subscribed to ISAs elsewhere, and HMRC will only learn of this a few months after the end of the relevant tax year.

It is no longer the case that such an error can be corrected by simply removing subscriptions from a flexible ISA (due to changes this tax year), and it seems likely in this case the invalid subscriptions were made to the Lifetime ISA.