A saver asked HMRC how the tax would apply to their funds

HMRC has provided guidance on when it will reach out to people who owe tax. The update came after a query from a taxpayer about tax on ISAs. A customer sought advice on what steps they should take after overpaying into their ISA accounts .

ISAs are tax-free accounts where any growth from investments or interest earnings are not subject to tax, as long as your deposits remain within the annual allowance. The current yearly limit for how much you can pay into ISAs is £20,000.

This allowance can be split between cash ISAs and stocks and shares ISAs. The worried saver informed HMRC : "It's inadvertent and some of the money has been invested into shares so therefore I am not sure what to do at this point. I have contacted the IS

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