Added new funds to new ISA on last day of old tax year...

HeadFullOfWool

Hi folks,

I opened my new Stocks ISA with Trading 212 on the 5th April, and the account setup wizard took me through adding funds (half the annual allowance), without prompting me about allowances reached. I had already maxed my ISA allowance for the 25/26 tax year (in a Cash ISA).

Not being familiar with the processes/timing of thins on the (new to me) platform, I completed the deposit.

The result was that it registered my first deposit in the wrong tax year, one day early (the Sunday). No investments were made until the 7th April, when some USA market items transacted.

After that, on the Tuesday 7th, I added more deposit, taking me to just 17 pence UNDER the annual allowance with the total deposits made.

I have not exceeded my annual allowance, but the app doesn't know this and thinks I can still add to the account by a further £10,000.17.

I've contacted T-212 to ask if they can correct the allowance to reflect my actual intention of achieving the (almost) full allowance for 26/27 tax year. Their first response was just a fob off of "it calculated your allowance correctly", because they clearly didn't thoroughly read/understand what I was asking them.

Otherwise, I would be seen by HMRC as £10K over my 25/26 allowance for a duration of about 8 hours and 20 minutes.

I've read elsewhere on this forum in a similar subject that HMRC may just write to me at the end of the year to warn me not to let it occur again. Is that about the end it?

I'd prefer to keep everything squared away and tikitty-boo, if possible.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/6665340/added-new-funds-to-new-isa-on-last-day-of-old-tax-year

Why do you think the date you chose to invest the money within the ISA is relevant?

You seem to be confirming you over funded in 2025/26 but see it as someone else's issue

eskbanker

What's done is done, in that T212 can't falsify records to pretend that your subscription made late in 2025/26 actually took place in 2026/27 - as you say, HMRC may decide that no further action is necessary, but you'll just have to wait and see (they won't indicate in advance).

Ayr_Rage

You are over the 2025/26 allowance, no question, entirely your fault and it cannot be undone by T212.

It was CORRECTLY registered, so no point in trying to get T212 to do anything.

Blaming an unfamiliar platform is nonsense, April 5th and 6th are in different tax years.

You are now at the mercy of whatever HMRC decide once the deposit is reported by T212.

InvesterJones

Oops. As above, the thing that matters is the date you add funds, not whether you invest them - you will have earned some interest on your deposit overnight for instance. Technically that interest should be taxable, but whether or not you get chased for the tax due on your £1 or so I don't know.

masonic

Had you not waited over 2 weeks to raise the issue here, there would have been steps you could have taken to fix this. However, you misunderstand if you think you were only over the allowance for 8 hours and 20 minutes. The S&S ISA is still technically invalid, and you are still seen as having subscribed £30k to ISAs in 2025/26. But the best approach now would be to do nothing. It is of course your choice if you volunteer not to use £10k of your allowance this tax year, but HMRC might not take that into account in the unlikely event it decides to void the T212 ISA. Most likely you'll hear nothing from HMRC, second most likely they'll let you off with a warning for a first offence.

Newbie_John

I had once similar case, by mistake added £10k to ISA instead of GIA (already reached ISA limit elsewhere), called them soon after and they sorted it out - so if you acted quickly they could have done something, but now that option is gone.

Now wait and see.

Newly_retired

A couple of years ago I topped up my ISA part way into the tax year and inadvertently went slightly over the allowance as I got my sums wrong. A day or so later, I withdrew the excess, just a few pounds. I heard nothing more - neither the Building society nor HMRC got in touch.

HeadFullOfWool

https://forums.moneysavingexpert.com/discussion/comment/81973736#Comment_81973736

Asking for assistance isn't seeing it as someone else's issue (other than that the onboarding process could have been a bit less leading into immediate deposit setup mode; a simple question at the start of that stage, to pause and ask where you're at within your annual allowance for the current tax year would be a fairly simple modification, before user moves into actual depositing if they are below the limit).

That said, I fully own that I made a (totally unintentional) mistake with a tired brain and should have taken more time going through the sign-up process. What I was seeking (admittedly at a too late stage now, from what others have mentioned, although it was a few days ago when I first queried it with 212) was whether there were any methods (other than just a message to their help desk) through which I could get it rectified to align the deposit within the intended tax year, or if anyone knew if I would be hit with an unpleasant tax liability later. I am not seeking to make an unfair gain.

From what other (more helpful) comments have indicated, it sounds like I'll just have to wait and see.

35har1old

https://forums.moneysavingexpert.com/discussion/comment/81973764#Comment_81973764

If it was a cash ISA you would have been able to ask for the return of funds if you stated that you had made a error in over contributing for that tax year even if it had been a fixed term the early withdrawal fee may not be applied

Contacting HMRC now you likely not get any answers they now don't have a dedicated ISA team

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81974065#Comment_81974065

Are you referring to the cancellation process during the cooling-off period, or are you suggesting that there's something else that would allow an investor error in one tax year to be reversed/corrected in the next one (if so, what's your source please)?