HMRC has provided guidance on when it will get in touch with ISA savers who pass the tax-free limit. The authority was asked to clarify its rules regarding tax on ISAs after a taxpayer sought advice on what they should do having overpaid into their ISA account.

ISAs are tax-free accounts where any growth from investments or interest earnings are not subject to tax, as long as deposits remain within the annual allowance. Currently, you can deposit up to £20,000 per year into ISAs, which can be split between cash ISAs and stocks and shares ISAs, reports the Express .

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 ISA providers."

In response, HMRC stated th

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