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What Can Happen If I Pay Into Too Many ISAs At One Time

by Jim ONeil on May 16, 2011

in ISA's Individual Saving Accounts

Assuming that this is an innocent mistake, it can be fixed. The yearly allowance for ISA accounts is £10,200. Any excess payment over that amount is considered invalid. If you happen to discover that an excess payment was made, this is not a mistake you should attempt to correct on your own.

When the excess payment is discovered, it is best to contact the ISA helpline. The representatives should be able to walk you through the process of what needs to be done in order to correct the error. Be honest with them and be sure to stress the fact that is was indeed a mistake.

While you will obviously not receive any interest on the excess funds, it will more than likely be considered a no-harm/no foul occurrence and you will receive nothing more than a quick slap on the wrist and be sent on your way.

While the HMRC can be understanding to first time violators, repeat offenders may find a fine in their future. It is extremely important to monitor your ISA transactions to ensure that this type of mistake does not happen again.

The second go around may not come out quite as rosy as the first time.

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