Full ISA Guide Discussion Area

dingdong11

badger09
No, not yet, I assume if I had, I'd have no chance. Was told by Santander last night that I need to go to a branch tomorrow to get advice, which will annoy my boss and I have to get someone to take me. Another ISA organisation told me today I have to contact HMRC as well.

innovate

dingdong11 wrote: »

badger09
No, not yet, I assume if I had, I'd have no chance. Was told by Santander last night that I need to go to a branch tomorrow to sort it, which will annoy my boss and I have to get someone to take me. Another ISA organisation told me today I have to contact HMRC as well.
New user to threads, no idea how to link them to my original message, so may get this wrong.

Since it's about your 2013-14 ISA, and you haven't paid anything into it yet, you have oodles of time to sort things out. Like almost 363 days. Of course, you would like to sort it sooner rather than later but there is absolutely no need for any further rush decisions. Take your time and inform yourself before you agree to anything else.

You do not need to go to any bank tomorrow, and you don't need to talk to the HMRC about opening an ISA unless your tax affairs are extremely unusual.

dingdong11

Thank you for your response. If I don't sort this tomorrow, I won't be able to look into this until next month and I'd like to get my funds invested and forget about it.
Coventry Building Society were quite clear that I need to speak to HMRC, as she said if I applied for another one, they would hold details of both.
Re Santander, they have already provided me with a bank account that is awaiting the funds.

dingdong11

I know you can only pay into one organisation in a specific tax year, so at the moment I have only set up the one Santander fixed for 2 years account that I am trying to cancel and get confirmation that I can open the correct one for me.

innovate

dingdong11 wrote: »

Coventry Building Society were quite clear that I need to speak to HMRC,

as per my response to your other post about this that's rubbish.

dingdong11 wrote: »

as she said if I applied for another one, they would hold details of both.

That is true because the providers must provide the info to the HMRC. But the HMRC do not expect to hear from you.

innovate

dingdong11 wrote: »

I know you can only pay into one organisation in a specific tax year, so at the moment I have only set up the one Santander fixed for 2 years account that I am trying to cancel and get confirmation that I can open the correct one for me.

If you have not yet paid anything into that ISA (which you said you had not), you can just ignore it and open/pay into the one that you like better.

Baileys1963

Hi I have my ISA account with Scottish Widows. I have been with them for 5-6 years. I have put in about £15 k and if I withdraw all the money I will only be able to have back about 12,500? Therefore a Poor rate of interest. Should I stay or go? I was thinking of transfering into 2 Cash ISA's - to gain some kind of interest
Thanks
P.S I'm new to this site - just started today!!! :j

tobyprudden

Hi everyone!

I've just joined today after many years of browsing the site for tips etc after some confusion about the rules for ISAs and how to transfer them.

I'll try and keep this short and to the point, but sorry if I ramble on a bit!

I have had a personal savings account with ING Direct for a number of years, and so when I wanted to set up an ISA I did it through them for ease of access etc. I have since opened 3 ISA accounts (06/09, 11/12, 12/13) with them which were linked to my ING savings account. I recently noticed that the older accounts had dropped down to 1% AER, and so transferred the money out of those accounts into the 12/13 one which was at 1.75% AER, but I did this via my ING savings account, as I couldn't see a way to transfer it directly.

Since then I have been reading about the new 13/14 ISAs on here, and noticed the 'Golden Rule' to never ever withdraw the money yourself, and now I'm worried!

I currently have a few thousand sitting in my savings account that I transferred out of the 11/12 ISA with the intention of using it to set up a 13/14 ISA with ING, but it seems they aren't offering any new accounts since Barclays bought them out! I am therefore looking to set up an ISA with a new provider (maybe this Poppy ISA which looks like the best rates and flexibility), but I'm concerned that a) having taken the money out of the ISA myself I will lose all the tax benefits and so now it can be taxed like normal savings, and b) that the Poppy ISA and others specify that previous year's ISAs cannot be transferred in - will this count as a transfer of an old ISA if I have already taken it out and put it in my savings??

Basically - help! Have I already messed it all up by withdrawing the money from my old ISAs into my savings, or am I still ok to open a new ISA account with the money which used to be in an old ISA account?

Yours,

Confused of London

saintalan

Hi Toby, yes it can be confusing. Take the 2nd point 1st, the Poppy a/c does not allow transfers in.

With regard to the ING saga its hard to tell but it sounds from what you say that you have moved money out of the ISA into a non ISA a/c and then on to another ISA, in this case I am afraid you will have lost your TAX wrapper.

I should check with Barclays/ING to clarify what you actually did.

Cheers

Alan

innovate

tobyprudden wrote: »

Basically - help! Have I already messed it all up by withdrawing the money from my old ISAs into my savings, or am I still ok to open a new ISA account with the money which used to be in an old ISA account?

Yep, it was a mistake to move the money into a savings account. May be ask Barclays whether they can move it back into the ISAs but chances they will be able to do that are extremely slim.

The money in your savings account will get taxed at 20% (unless you are entitled to gross interest and have applied for it), and it will no longer be recognised as ISA money.

You can open a 2013-14 ISA and deposit any money into it that you like, including money from your savings account. Such deposits will count towards your current year annual ISA allowance.

But you cannot transfer (in ISA transfer terminology) any money into a 2013-14 ISA now since you have no funds in old ISAs. Such transfers, if done properly, would not count towards your current year annual ISA allowance.