Barclays rant!

Sillychuckie

So my ISA for 2006/07 tax year was with Newcastle BS.
Towards end of April 07, I apply for the Barclays Tax Beater cash ISA instructing them to open it for the 07-08 tax year.
Barclays screw up, and open it for the 06-07 tax year.

I get a letter from HMRev telling me I'm naughty for opening 2 ISAs in 06/07.
However, they'll let me off this one time unless I do it again, then they'll make me suffer. (I'm paraphrasing, of course).

I call HMRev a week ago to find out if I still have my 07-08 allowance available. They say:
"Although you applied for your Barc Tax Beater isa in 07/08, because they made a mistake and opened it for 06/07, you do technically still have your 07/08 allowance available. The fact you broke the rules in 06/07 doesn't mean you can't subscribe in 07/08."

I think, great... so apply for another ISA (this time with A&L) for the end of this tax year (07/08).

Whilst in a Barclays branch the other day enquiring about the 08/09 Tax Haven ISA, I mention all this. They check their records. They say:

"Ah yes. We spotted the mistake that we opened your ISA in the wrong year last month, and corrected it. Your Tax Beater cash ISA is now correctly labelled as 07/08". Nice of them to let me know...

So NOW... because I opened the A&L ISA a few weeks ago, because Barclays moved my tax beater ISA into this year, I have 2 subscriptions again. This solves the clash in 06-07, and moves it into 07-08.

Im sightly worried though that HM REv will think this is some sort of 'repeat offence'... Will have to write them a long letter now.
Any advice before I start, or any others with a similar experience?
Thanks.
:mad: :mad: :mad:

SC.

bristolleedsfan

Without wishing to appear cheeky didnt it dawn on you that Barclays initial error would get corrected? i.e, that u wouldnt be able to keep two ISA ( s) for the same tax year.

If I was working for HMRC and received a letter along the lines of your posting that would be the first thing that would enter my mind.

Sillychuckie

I lost faith in these institutions ability to 'correct their own errors' a long time ago.
I told them about it the moment I got the HM Rev letter, and heard nothing in reply months later. HM Rev also told me not to worry and that these mistakes happen.

What you are suggesting is that I shouldn't have opened an ISA in 07-08, because of a mistake Barclays made subscribing me to 06-07.
HM Rev themselves said I still had my allowance, and as a high rate tax payer, I would be more stupid to ignore it and not use it.

At least my extra subscription can be resolved. Had I not used the allowance, it would have been lost forever.
I blame this situation on Barclays initial fault, and their ongoing lack of communication. I completely disagree with your view.

bristolleedsfan

Sillychuckie wrote: »

I
What you are suggesting is that I shouldn't have opened an ISA in 07-08, because of a mistake Barclays made subscribing me to 06-07.
HM Rev themselves said I still had my allowance, and as a high rate tax payer, I would be more stupid to ignore it and not use it.

U are welcome to disagree with my view. :T

All i was putting across was did u believe that u would get to keep two 3000.00 ISAs for the same tax year just because Barclays made an initial mistake.

Once the initial mistake came to light it was obvious that Barclays would either correct the error so that the ISA applied to the 2007/08 tax year or it would have refunded you the sum that you invested, as the latter didnt occur then it was obvious that your Barclays ISA was corrected to 2007/08 tax year.

As u state that u were in touch with HMRC before you opened the A+L 2007/08 ISA then they shouldnt require much of an explanation.

Ill leave it to someone else to post sharing your viewpoint.

Sillychuckie

bristolleedsfan wrote: »

did u believe that u would get to keep two 3000.00 ISAs for the same tax year just because Barclays made an initial mistake.

To be perfectly honest, Yes.

You seem to think that Barclays would correct or refund.
Barclays have no idea that I had previously subscribed to the Newcastle BS, so you are wrong to make this assumption.
It is not Barclays job to police the multiple ISAs rule, but HM Rev's.
There is no reason to believe Barclays would have rectified the situation, or return the funds. They eventually did (after acting on my initial complaint), but there was no guarantee they would do. A great deal of time passed between my query, and them doing so.

Furthermore, HM Rev quite clearly state in their letter that it IS OK to have subscribed multiple times. Just please don't do it again.
They themselves were not interested in chasing the issue further, or contacting Barclays to refund/correct mistake.
HM Rev also confirmed that I still had my 07/08 allowance.
I would have been daft to not use it.

As it transpired, it was a little daft TO use it... but this was only because Barclays eventually decided to pull their finger out, and not bother telling me they had done so.
Either way, this is still the same 'first offence' that I have already been written to about, so hopefully HM Rev will see it as such. If not, I'm more than happy to close the A&L ISA opened only a few weeks ago.

Regardless of our opinions, you can not possibly disagree that Barclays have handled this inappropriately. I'm sure HM Rev will advise me what to do, and I shall do it. I am not trying to get extra allowances here. You seem to be viewing me as the rule breaker.

SC.

[Deleted User]

Sillychuckie wrote: »

To be perfectly honest, Yes.

You seem to think that Barclays would correct or refund.
Barclays have no idea that I had previously subscribed to the Newcastle BS, so you are wrong to make this assumption.
It is not Barclays job to police the multiple ISAs rule, but HM Rev's.
There is no reason to believe Barclays would have rectified the situation, or return the funds. They eventually did (after acting on my initial complaint), but there was no guarantee they would do. A great deal of time passed between my query, and them doing so.

Furthermore, HM Rev quite clearly state in their letter that it IS OK to have subscribed multiple times. Just please don't do it again.
They themselves were not interested in chasing the issue further, or contacting Barclays to refund/correct mistake.
HM Rev also confirmed that I still had my 07/08 allowance.
I would have been daft to not use it.

As it transpired, it was a little daft TO use it... but this was only because Barclays eventually decided to pull their finger out, and not bother telling me they had done so.
Either way, this is still the same 'first offence' that I have already been written to about, so hopefully HM Rev will see it as such. If not, I'm more than happy to close the A&L ISA opened only a few weeks ago.

Regardless of our opinions, you can not possibly disagree that Barclays have handled this inappropriately. I'm sure HM Rev will advise me what to do, and I shall do it. I am not trying to get extra allowances here. You seem to be viewing me as the rule breaker.

SC.

On this one I understand what Sillychuckie did, let me explain why.

I ve seen one of these letters, and correct me if im wrong, it clearly says "You ve been bad, but dont worry its Ok to make a mistake, you dont need to do anything, just dont do it again".

Therefore I believe that Barclays made the mistake, then corrected it but then forgot to inform the Inland Revenue, therefore the Inland Revenue, not knowing that the correction had been made, would believe that you havent used your allowance. Therefore when you called them, they would have said "You havent used your ISA" - which is what has happened - therefore I can totally understand why you opened a second one.

I had to deal with a customer to which Abbey had made an error quite similar to this one, which resulted in months of following up. ended up speaking to a guy that was the Technical Adviser to banks at HMRC (The person that advises banks what procedures to follow - actually might still have his number )

Sillychuckie

The question is now, do I send this letter of explanation to the Inland Rev.
I'm sort of pre-empting the fact, that both Barclays and A&L will report an ISA subscription for 07/08.

The fact is, Barclays may have just corrected it on their system and not told the IN Rev, in which case, I'll hear nothing more about it. They have already written to me about the 06/07 clash, and said take no further action.
I could just wait until I get another IN Rev letter (if I do), saying "You have done it again!".

Still, I'd rather be upfront and honest and let them know what I think might happen. Do you agree?
I have the letter written, and a neat timeline in excel explaining everything (including all calls and discussions with Barclays).

SC.

[Deleted User]

Sillychuckie wrote: »

The question is now, do I send this letter of explanation to the Inland Rev.
I'm sort of pre-empting the fact, that both Barclays and A&L will report an ISA subscription for 07/08.

The fact is, Barclays may have just corrected it on their system and not told the IN Rev, in which case, I'll hear nothing more about it. They have already written to me about the 06/07 clash, and said take no further action.
I could just wait until I get another IN Rev letter (if I do), saying "You have done it again!".

Still, I'd rather be upfront and honest and let them know what I think might happen. Do you agree?
I have the letter written, and a neat timeline in excel explaining everything (including all calls and discussions with Barclays).

SC.

Yes I do agree, report it, send your letter. (though at first I did think dont say anything) At the end of the day, you d only be worrying that you might receive a letter asking you to close all your ISAs and its not worth it, by being upfront, they can only aknowledge your honesty, and hopefully understand that what has happened to you is an unfortunate succession of circumstances.
Also imagine if you didnt report it and they found out, you d probably be under constant scrutiny by the Inland Revenue. (Hope you know what I mean, dont mean you being dodgy). Definitely send your letter

spittingyarn

Just thought I'd offer my sympathies. :rolleyes:

The exact opposite happened to me - they opened the ISA for 07/08 when I asked them to open it for 06/07. I've lost out on a years savings, but at least I'm not in trouble with the revenue.

Very frustrating.

bristolleedsfan

spittingyarn wrote: »

Just thought I'd offer my sympathies. :rolleyes:

The exact opposite happened to me - they opened the ISA for 07/08 when I asked them to open it for 06/07. I've lost out on a years savings, but at least I'm not in trouble with the revenue.

Very frustrating.

U shouldnt have lost out, those who complained about losing their 2006/07 ISA allowance due to Barclays messing up received 200.00 compensation. ( approx 5 years worth of ISA allowances based on full 3000.00 not having able to have been invested in year 2006/07 ISA year + 4 years.)

kazwookie

Sorry OP I have nothing helpful to add.


BUT


I have just been to Barclays to open my Tax Haven ISA for 08/09.

I turned up 10 mins before a pre booked appointment. (2.20pm)

Was kept waiting 10 mins :mad: (2.40pm) after the appointment time (2.30pm), when finally shown into an office the lady told me, ‘ I was helping a colleague on an unrelated matter’, :mad: told the lady I had taken time off work to come in, to which I got ‘oh well’, now my time is money.

When making the appointment I specifically asked the lady what to bring with me, got told, passport, driving license, utility bill, plus money to open account with .

I check and said would £10 in cash be ok, got told yes.

So we start, as my time is now tight, owing to the late start, I have ready my passport, driving license, utility bill, and a £20 note (didn’t have any £10 on me) and a pen.

The lady then sees all this and says ’you cannot open an ISA with cash’:mad:
Me:- Why not?
The lady:- We only accept cheques
Me:- Why did you not tell me this on the phone, when I specifically asked what I needed to bring?
The lady:- ‘I don’t know’

Owing to chip and pin, I don’t carry my cheque book with me any more.

Needless to say I am some what annoyed, I take unpaid time off work, get kept waiting and not told the correct information over the phone………….

I leave the branch after some fairly strong, firm but polite words with the lady, and am back at work and am still some what annoyed, I have lost pay and still don’t have an ISA open, which means going back yet again, and losing more pay.

So when I go back I will take a cheque for £1 and all my ID stuff.

A £1 does seem fairly pointless to me, at least my boss is willing to let me have unpaid time off again.