paid into 2 ISAs by mistake - Community Forum (2024)

FAQs

What happens if I accidentally pay into two ISAs? ›

HMRC will work out which ISA needs to be void and tell you what to do next. This will likely involve contacting the provider of the void ISA with instructions to fix it.

You can only pay into one Cash ISA with YBS per tax year using your ISA allowance. There are four main types of ISA on the market: Cash ISA. Stocks and Shares ISA*

In situations where you have saved in excess of this sum in your ISAs in the tax year, you will need to discuss with your ISA providers, the removal of the excess from your ISA, incuding any interest the excess generated, and return it to you. The excess interest is taxable and should be declared.

What happens if I go over the annual ISA allowance? Most providers will stop you from going over the ISA allowance limits, but if you have ISAs with multiple providers then this is an easy mistake to make. If you do go over the limit, the best thing to do is contact HMRC by calling their helpline on 0300 200 3312.

However, as of 6 April 2024, this rule was scrapped and you can now contribute to multiple cash ISAs and stocks and shares ISA each tax year. Be wary of fees, though. Paying into multiple ISAs may cost you more in fees than if you had a single ISA.

An investor exceeds the overall subscription limit means an otherwise valid ISA will then become invalid during the tax year but it can be repaired. All tax relief (Income Tax and Capital Gains Tax) on the oversubscription will be lost up to the date of the HMRC 'repair' letter.

Conversation. This is an important listen if you've savings. Millions are wasting money by not being in cash ISAs when they should. Millions are wasting money by having money in cash ISAs when they shouldn't.

1.1 Increase the age for opening cash ISAs from 16 to 18 years old and over. From 6 April 2024 it will not be possible for anyone aged 17 and under to subscribe to more than one cash ISA . This is a mandatory change with transitional arrangements.

Yes you can. If you have a number of ISAs it's often easier to manage them if you combine them into one. You hear this referred to as consolidating your ISAs. You can do this by moving your ISAs into one of your existing ISA accounts (as long as your provider accepts ISA transfers) or you can transfer into a new ISA.

You'll only be able to access your money by closing your account. You can do this by visiting your local branch. If you close your ISA before your term ends, you'll have to pay an early access charge. You can withdraw or transfer money from this account any time you like.

Does HMRC know about my ISA? ›

Isa providers are obliged to provide contribution histories to HMRC. If you go over your limit without realising it, HMRC will contact you and you can arrange to correct the underpaid tax.

HMRC contact details

For claims and returns for Lifetime ISAs , e-mail [email protected] or telephone 0300 200 3300.

If both were opened in the same tax year, you will need to contact the second ISA provider for them to close it down. If you opened a second cash ISA, but in a different tax year to the first, then that is fine.

You can pay into two ISAs in the same tax year provided they are different types of ISA. It would be fine to pay into both a cash ISA and a Stocks & Shares ISA in one tax year as long as you're below the £20,000 limit. You would not be able to pay into two different ISAs of the same type.

The ISA rules have changed as of 6 April 2024. You can now have - and contribute - to as many ISAs as you want (except for Lifetime ISAs and Junior ISAs). Provided you don't contribute more than your £20,000 ISA allowance across them all. This means you can open more than one of each ISA type.

Yes you can. If you have a number of ISAs it's often easier to manage them if you combine them into one. You hear this referred to as consolidating your ISAs. You can do this by moving your ISAs into one of your existing ISA accounts (as long as your provider accepts ISA transfers) or you can transfer into a new ISA.

Under the strict statutory approach, breaches of the ISA regulations can lead to voiding of the ISA . If an ISA is voided: We will recover from you any relief you gave to the investor. The investor may have to complete a Self Assessment tax return to declare income and gains in excess of the personal savings allowance.

If your ISA is 'flexible', you can take out cash then put it back in during the same tax year without reducing your current year's allowance. Your provider can tell you if your ISA is flexible. Your allowance is £20,000 and you put £10,000 into an ISA during the 2024 to 2025 tax year.

You cannot 'cancel' individual products you've opened within your Online ISA. This means that unless you cancel your entire Online ISA within the 14-day cancellation period, any deposits you've made into your product(s) will count towards your annual ISA allowance.