£100k deposit into my Current Acc,

[HomesWarehouse]

will be having a 'Gift' deposited into my Current Acc, from one person into my Personal acc

the Gift is for a business deal going on with our companies,

Question is, who is going to ask me where it came from, and is this allowed?

 

[ADW]

Your bank certainly could ask you. I had been called in before when having a larger lump sum paid in. They said for review but the request came days after the deposit.

 

[HomesWarehouse]

to be honest I am fully expecting to be called up on the deposit, but need to know if its ok to say, its a gift, as would not like to get called for tax etc on it. or even money laundering etc

 

[Annoying Donkey]

Isn't it anything over 10k raises a flag under money laundering...?

I had some sums much larger than 100k paid in and I approached the bank first. They had no problem, although they tried to sell me "investments"...

 

[HomesWarehouse]

Isn't it anything over 10k raises a flag under money laundering...?

I had some sums much larger than 100k paid in and I approached the bank first. They had no problem, although they tried to sell me "investments"...

when you approached the bank did they ask you where funds were coming from and for what reason??

 

[Clinton]

the Gift is for a business deal going on with our companies

The official word for such a "gift" is "bribe".

If you're the owner of one of the businesses, it's even worse. The term you're looking for there is, possibly, tax evasion.

Who is going to ask you? Ans = Nobody.

For a while.

Then the fun will probably start with a letter from HMRC asking for an explanation.

 

[HomesWarehouse]

The official word for such a "gift" is "bribe".

If you're the owner of one of the businesses, it's even worse. The term you're looking for there is, possibly, tax evasion.

Who is going to ask you? Ans = Nobody.

For a while.

Then the fun will probably start with a letter from HMRC asking for an explanation.

that's fair enough,, I suppose there's only one way to find out

 

[Annoying Donkey]

when you approached the bank did they ask you where funds were coming from and for what reason??

Yes, there were various questions, but nothing particularly invasive. They are required to do their checks, so why not get it out of the way up front...

 

[STDFR33]

If the bank suspect money laundering, the bank must make a Suspicious Activity Report to the National Crime Agency. Please note, the word suspicious - they only need to suspect to make a report.

If this amount is much larger than the usual sums passing through the account, unless you have documentation backing up what the sum is for, then your account will probably be frozen and a report filed until the bank is happy that there isn't any foul play.

As Clinton has alluded to, the gift may well be in breach of the Bribery Act 2010.

 

[Chris Ashdown]

100K without any pre notice will certainly cause a big problem and ring alarm bells to freeze account unless a every day business transaction

Suggest you contact the bank first and don't use gift as a reason as they will require proof in most cases

 

[paulears]

My local sub-post office have a button on the screen they tap to flag any unusual large amount of money being paid in - I once paid in £1300 in Northern Irish bank notes, and they laughed and found the button lighting up funny - "Is this a suspicious transaction?" coming up on a fairly small amount, so never assume any amount is free of nosiness.

 

[billmccallum1957]

The words fraud and deception spring to mind. Why anyone would ask for advice about such things (on a public forum) surprises me.

 

[Vectis]

I'm finding this a little bit odd. Why are you calling it a 'gift', and who would 'gift' a business £100,000?

If it's an investment in the business then you need to treat it as such. But saying someone will simply 'give' you £100k will start rather loud alarm bells ringing.

Why are you so secretive and evasive about it and seemingly worried about whether you will be called in to explain it? If it's all above board then what is there to worry about? Of course, if it is a backhander then you should indeed be worried...

 

[it_and_sales_freelancer]

I once paid in £1300 in Northern Irish bank notes

Northern Bank notes by any chance?

www dot breakingnews dot ie/ireland/northern-bank-robbers-still-struggling-to-spend-265m-655038.html

Not that i'm suggesting anything.....

 

[Alan]

If I recall correctly if a bank employee fails to report a suspected money laundering activity the employee personally can go to jai for 7 years. So I expect it will get flagged.

 

[japancool]

A gift from a Nigerian prince, by any chance?

 

[paulears]

Northern Bank notes by any chance?

www dot breakingnews dot ie/ireland/northern-bank-robbers-still-struggling-to-spend-265m-655038.html

Not that i'm suggesting anything.....

Ha! Actually I'm amazed because Belfast cash machines are full of a huge range of notes, and with at least 4 banks each producing all denominations, plus older versions still in circulation, and even a £100 note - no wonder nobody in England will change them. The Post office and my bank will only let me pay them in, and do me a separate withdrawal transaction, in case they're dodgy. NI folk coming here get really angry when their Stirling notes are not accepted.

 

[obscure]

I'm finding this a little bit odd. Why are you calling it a 'gift', and who would 'gift' a business £100,000?

Exactly. It is either a legitimate payment as part of the business deal that the OP is seeking to hide from the tax man (tax evasion) or it is a bribe for services rendered.

 

[UK Contractor Accountant]

Doesn't every poster on this thread now need to make a SAR

 

[HomesWarehouse]

the cash paid in would be into my personal account, the reason for the cash is a 'Thankyou'
due to one of my companies purchasing a large amount of property from another company,

sounds complicated I know, currently up in the air but looking to do the deal above board so asking for advice as I don't want to get called in for it and be in trouble with HMRC ect

 

[Clinton]

That's a text book definition of bribe!

 

[HomesWarehouse]

also just for everyone's information, the money would be coming from a Solicitor so nothing dodgy or illegal going on, the money is not laundered etc, I just need to find out the best way to do the transaction without getting my account shut off.

best way seems like walking into the bank and letting them know about it as mentioned a few times above

 

[HomesWarehouse]

That's a text book definition of bribe!

to make the transaction legitimate would I need to work it into the original deal between the companies? as for obvious reasons I would prefer this in my name not the companies

 

[Clinton]

as for obvious reasons I would prefer this in my name not the companies

The reasons are not obvious to me. Could you explain?

 

[STDFR33]

If you think this gift / thank you / bribe will be tax free, you are mistaken.

 

[HomesWarehouse]

The reasons are not obvious to me. Could you explain?

its a much easier transaction If I do not need to remove the cash from my company also, although I do have a directors load large enough to remove it this way.

this type of advice is the reason I posted in the first place, so advice is appreciated guys

 

[HomesWarehouse]

If you think this gift / thank you / bribe will be tax free, you are mistaken.

im not trying to avoid tax, I will pay whats due, just needing advice on the best way this type of transaction can be done, my accountant is a straight guy so will deal with this how its needed anyway

 

[HomesWarehouse]

Doesn't every poster on this thread now need to make a SAR

don't get to excited, this transaction it purely fictional for now, im asking for advice on how to do it correctly

 

[ADW]

Would have thought you can declare it as self employed earnings outside of the other company. Tax will be due whichever way you do it.

So is it actually a business payment that you don't want going through your regular business? You have made it sound like a backhander/ under the table type of payment.

Regardless, I would assume there plenty of other official large payments taken place previously which has led to the newer potential payment. Have you not got a decent Accountant you use regularly? That's where you need to be taking this question.

 

[HomesWarehouse]

Would have thought you can declare it as self employed earnings outside of the other company. Tax will be due whichever way you do it.

So is it actually a business payment that you don't want going through your regular business? You have made it sound like a backhander/ under the table type of payment.

Regardless, I would assume there plenty of other official large payments taken place previously which has led to the newer potential payment. Have you not got a decent Accountant you use regularly? That's where you need to be taking this question.

I suppose its a backhander or sorts, all be it an above board one, I have a meeting with my accountant end of the month but the more info I have the better, 100k would not be an unusually large transaction to be honest, but I usually its from a source such as a mortgage company or proceeds of a property sale etc, the official reason for this payment is a grey area realy, just looking for the best way to do it

 

[billmccallum1957]

If you already have a DLA that owes you £100K, then its probably best to put it through the company and withdraw it as a loan repayment. AFAIK that would be tax free.

 

[STDFR33]

If you already have a DLA that owes you £100K, then its probably best to put it through the company and withdraw it as a loan repayment. AFAIK that would be tax free.

Are you saying that it would not be part of the property deal and be liable to corporation tax?

 

[japancool]

Are bribes, in fact, illegal if you declare them as income and pay tax? Isn't that then a, *ahem* "commission"? Or "consultancy fees"?

 

[ADW]

He is hoping not to pay tax from the way it is put in first few posts.

Should go old school and have an handover in the park with a couple of holdalls containing mixed used notes. Less chance of getting caught ;-)

 

[Newchodge]

OK, let's try and clear the air.

A company, with which your company has recently transacted a large amount of business, intends to place a very large sum of money in your personal account. What consideration has the other company received from you, to justify the payment?

 

[billmccallum1957]

Are you saying that it would not be part of the property deal and be liable to corporation tax?

No, I'm simply suggesting that he put it through his company, so its done legally.

From everything he said on his thread, its sounds like a dodgy deal or a discount/commission on the deal between the two companies, so its the companies money, not his.

May well count towards CT at year end, but he can withdraw DLA without tax, after CT.

 

[Chris Ashdown]

You have done nothing personally to get the reward as you are a Director of the company and must carry on to the best ability to the company, the deal was company to company, therefore the company owns the money

 

[Breaking Good]

Here's another question:

Why would the other company want to pay £100k into your personal account if it's a deal between 2 companies? They've then paid £100k to you, not£100k to your company, meaning they still owe £100k to your company.

Most people would only pay it into an account in the company's name. Why can't you do that and then transfer from your company to your personal. If anyone asks then say it's a director's loan or dividends from your company (and pay tax accordingly).

 

[japancool]

Here's another question:

Why would the other company want to pay £100k into your personal account if it's a deal between 2 companies? They've then paid £100k to you, not£100k to your company, meaning they still owe £100k to your company.

Most people would only pay it into an account in the company's name. Why can't you do that and then transfer from your company to your personal. If anyone asks then say it's a director's loan or dividends from your company (and pay tax accordingly).

Why ask the question when we already know the answer to this?

 

[STDFR33]

this transaction it purely fictional for now