Accidentally paid in more than £20,000 in one tax year to 2 cash ISAs - Community Forum (2024)

FAQs

What happens if you accidentally pay into two cash ISAs? ›

You can only have one cash ISA in each tax year. If both were opened in the same tax year, you will need to contact the second ISA provider for them to close it down.

Hi, As £20000 is the maximum you can put into any combination of ISA's in a tax year, you will need to contact the ISA provider, who you saved £2000 with, so that they can repay the sum to you and bring you back in line with the ISA rules. Thank you.

If you happen to overpay, you will need to contact your provider and the HMRC at 0300 200 3300 to see if you can receive the excess back. If you cannot, you may have to pay tax on any interest gained from the excess amount. Learn more about ISA: Different types of ISAs.

No,you cannot open two cash ISas in the same tax year. You can have more than one cash ISA, provided they were opened in different tax years.

Putting money into an ISA

You can only pay into one Lifetime ISA in a tax year. The maximum you can pay in is £4,000.

Junior ISA Loophole

Before April 6, 2024, 16 and 17-year-olds could save up to £29,000 a year in ISAs by using both the Junior ISA and adult cash ISA allowances. But now, only those 18 and older can open cash ISAs. This means 16-year-olds can't access adult cash ISAs anymore, closing that loophole.

They'll work out which ISA payment breached the limit and reclaim the money for you. There may be a charge for any tax due. If you don't notice the mistake, HMRC will pick it up at tax year end when your providers send them details of the money they've received from you.

Yes, you can add money to your Cash ISA every year, as long as the total amount does not exceed the ISA allowance for 2023 24 of £20,000. If you contribute to more than one type of ISA during the same tax year, this total amount of £20,000 must be split and shared across the ISA accounts.

ISAs are a simple way to grow your money in a tax-efficient manner. You can invest up to £20,000 in your ISA each year, whether it's a cash ISA, an innovative finance ISA, or a stocks and shares ISA, and you can watch your money grow within your tax-free wrapper, including any income you build up.

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 .

Can I reverse an ISA transfer? ›

Yes, you can cancel your ISA transfer. To do this, you will need to contact your existing ISA provider.

You can withdraw money from your cash ISA and replace it within the same tax year, without it counting towards your annual ISA allowance. This is called ISA flexibility. Our ISA flexibility explained page has more on this. Not all ISA products offer flexibility so check the terms and conditions before applying.

It is best to wait until HMRC contacts you as there is a risk that you may close the wrong account. A spokesman from HMRC said the message is “sit tight and expect contact”. However, while savers can only open one new cash Isa each tax year, it is possible to switch to a different provider if you find a better rate.

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 can have as many ISAs as you like, and as of April 6, 2024, you can open and contribute to multiple ISAs of the same type in the same financial year. So, for example, you could open and contribute to two different Stocks and Shares ISAs or two different Cash ISAs.

This rule will change from April 2024, so you can open multiple ISAs of the same type without losing your ISA allowance. It's important to remember that if you don't use your full ISA allowance in a tax year, you can't carry it over to the next one. So, it's a case of 'use it or lose it'.

As of 6 April, investors are allowed to open and pay into multiple ISAs of the same type in the same tax year (except for lifetime ISAs). This means you could contribute to two or more stocks and shares ISAs and/or two or more cash ISAs. Previously, it was a case of one ISA of each type, each tax year¹.

You can withdraw money and put it back in as many times as you like in the same tax year. It will not count towards your ISA allowance. You have 14 days from the date the ISA changes to cancel the account with no charge. You can do this by closing it or transferring to another ISA product.