Duplicate Junior ISA

CherylO84

A family member asked me to set up a new account for them to pay into for my son and stupidly I didn't realise he already had a Junior ISA set up. It's only come to light now as they've paid in £10k which is also over the £9k limit. Grateful for any advice on next steps, I'm assuming it's transferring one into the other and then confessing the error to HMRC? Does anyone know what the outcome might be for this type of mistake? 

xylophone

Do you mean that your son's father had opened a JISA for your son and you had forgotten/ not been told?

Contributions were being made?

You opened a JISA and gave the relative the details so that the deposit could be made?

The JISA provider accepted the £10,000 deposit without question?

Are you sure that the account you opened was actually a JISA?

masonic

Assume the £10k payment was returned for breaching the limit. Or just the excess?

Was anything paid into the earlier JISA during this tax year?

Sounds like a leave well alone situation and wait for HMRC to contact you.

CherylO84

Account 1 is with Nationwide and was set up shortly after he was born. One set of grandparents pay £10 a month in so about £1300 in there now. Account 2 was asked for by another grandparent as a 'good account' and is with Tesco, in theory this has £10k in it but I've asked the question about bounce back. I've stopped anything else being paid into nationwide now but I need to close that account however to do that I'd have to transfer to Tesco which is already over the limit. If I close Nationwide it would have nowhere to bounce back to surely? 

masonic

If the Nationwide account has been receiving regular monthly payments for some time, it would be the valid JISA and the Tesco one invalid.

If the aim is to transfer to Tesco, then ideally the whole £10k will get rejected and the transfer can proceed with all current year subscriptions coming from Nationwide initially. Otherwise it will be messy. See https://www.gov.uk/guidance/repair-a-junior-isa-and-manage-account-holders-subscriptions

Tesco account will probably need to be closed if the money isn't bounced back.