Accidentally paid too much into ISAs, what will happen?

[Somewhatfoolish]

Through moronicity I've accidentally massively exceeded ISA allowance by over 50% (it's no excuse but someone was talking to me loudly and I banged an extra 0 on the end of a 1.5k transfer taking me up to my limit and making it 15k, coming to total of 33.5k across everything). There's lots of advice online essentially saying call HMRC and obviously this is what I will do, but what there isn't much about online is what will happen. Is it just gonna be that they refund it or are terrible fines on the way? This is a stocks and shares ISA too which probably complicates things!

(Edited cause I can't even do basic maths)

Edited by Somewhatfoolish on Wednesday 12th March 23:14

[technodup]

I did this and they just sent me a cheque back for £20k plus interest (cash ISA). Which because I had forgotten about paying in the original £20k I thought was a mistake. I cashed the cheque and spent several months phoning to check my ISA balance, thinking I was £20k up on a banking error.

Turned out I wasn't, I was just disorganised.

[Alex Z]

Were all the payments to a single provider or is it spread across a few?
If it’s the former I’d expect them to bounce it back to you.

[Tim330]

The ISA provider is obligated to return the overpayment to your registered address in 1p and 2p coins within 7 days.

[Mr Overheads]

Surely as you can deposit/withdraw in the same year with ISA's, jsut withdraw the overpayment to bring you back down to £20k for the year. As long as it's done quickly and it's obviously rectifying a mistake can't see an issue. If you made some taxable gains/interest in the period you were over, then declare that (on a pro-rata basis) as taxable income/gain on your self assessment.

[Peterpetrole]

Prison is too good for you

[river_rat]

Mr Overheads said:

Surely as you can deposit/withdraw in the same year with ISA's, jsut withdraw the overpayment to bring you back down to £20k for the year. As long as it's done quickly and it's obviously rectifying a mistake can't see an issue. If you made some taxable gains/interest in the period you were over, then declare that (on a pro-rata basis) as taxable income/gain on your self assessment.

That's what I did when I paid too much in (albeit only by £250)

[Somewhatfoolish]

I tried calling up HMRC today and after 20 minutes on hold gave up. Fortunately (in a way) because of it being a stocks and shares ISA it's gone down a bit so I would assume proactively withdrawing the amount over deposited is thing to do as that'll effectively mean a slight underpayment for the year. But I'm not sure I trust common sense there so... I dunnno...

[bentley01]

Somewhatfoolish said:

I tried calling up HMRC today and after 20 minutes on hold gave up. Fortunately (in a way) because of it being a stocks and shares ISA it's gone down a bit so I would assume proactively withdrawing the amount over deposited is thing to do as that'll effectively mean a slight underpayment for the year. But I'm not sure I trust common sense there so... I dunnno...

Phone HMRC first thing as soon as they open and you should get straight through

[AndyAudi]

I asked this last year as mother wanted £20k into her cash ISA, we forgot she’s a standing order for a stocks & shares….

We ended up doing nothing, both were same bank & they pretty quickly automatically stopped the standing order & I think refunded the overpayments from the cash ISA for amounts already paid in s&s

[BenB91]

Contact your ISA provider and explain. They will refund the money and fix their side. No need to call HMRC.