Putting unexplained cash in bank

Discussion in 'Legal' started by Gmehat, Jun 23, 2016.

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  1. Gmehat

    Gmehat UKBF Contributor Free Member

    63 2
    hi there so I really could do with some advice

    Basiclly over the last year I've withdrawn a bit of money from my bank and haven't bothered re depositing the cash. Now i have around £5000 I need to put back into the bank but I recall HSBC asking me how much I earn a week last month to update my account details. I told them I was working part time and get paid £150 a week (£150 goes into my bank week without fail from work. I have recently started a summer business which is making me and extra £150 - £300 a week which yet again is coming in as cash. And I'm not registered as a business.

    I'm worried if I start putting money into the bank they will start asking questions. I can't explain to my bank how I've make the money as I don't believe Me saying that my money has just been sitting in my room and I've made the rest by selling some would be good enough.
     
    Posted: Jun 23, 2016 By: Gmehat Member since: Dec 28, 2015
    #1
  2. Ian J

    Ian J Factoring Specialist Full Member - Verified Business

    5,307 1,520
    You've sold your car
     
    Posted: Jun 24, 2016 By: Ian J Member since: Nov 6, 2004
    #2
  3. paulears

    paulears UKBF Big Shot Full Member

    3,931 974
    The banks have a duty to report money laundering - indeed, in the Post Office, one button the customer cannot see flags up a transaction as a possible laundering one. Quite what happened when the clerk presses it I don't know.

    However - your bank works for you. If they ask you how much you earn, almost certainly that is a question designed to sell or not sell you something. Don't answer - they have no rights in this area.

    Another however - if you are working illegally (from the Tax authorities perspective), then at some point HMRC could ask you to account for these sources of money. Your bank will of course tell them your rough account balance by paying you a tiny amount of interest, which is reported to HMRC.

    Having money isn't a crime - not reporting it so you pay the right tax is.
     
    Posted: Jun 24, 2016 By: paulears Member since: Jan 7, 2015
    #3
  4. JEREMY HAWKE

    JEREMY HAWKE UKBF Legend Full Member

    4,008 1,268
    Register as a business today and claim any income and submit a tax return each year .
    It not worth risking anything with the Inland revenue .
    If you have done this and submitted your account to the tax man and the bank ask you what you are doing with your money . You can then tell the bank to mind their own business and if they dont like it you will bank somewhere else

    You appear to be confused . It does not matter what you tell the bank .You can tell them a load of porkies if it is not used to apply for any borrowing . Stuff the bank but you must MUST tell the tax man what you are doing
     
    Posted: Jun 24, 2016 By: JEREMY HAWKE Member since: Mar 4, 2008
    #4
  5. Gmehat

    Gmehat UKBF Contributor Free Member

    63 2
    I just want what money I have in cash transferred to my bank without any questions... Christmas time I diposited and spent over 15 grand on stock though my bank with no questions. Because I recently told them I earn £150 a week it's got me a little worried.

    Apart from that with my newly formed business I'm wanting to get it fully legal. Am I right in thinking I just need to register as a business and get liability insurance?
     
    Posted: Jun 24, 2016 By: Gmehat Member since: Dec 28, 2015
    #5
  6. Ian J

    Ian J Factoring Specialist Full Member - Verified Business

    5,307 1,520
    You need to inform HMRC that you have started a business but whether or not you need liability insurance depends on what it is that you are doing
     
    Posted: Jun 24, 2016 By: Ian J Member since: Nov 6, 2004
    #6
  7. boring-friday

    boring-friday UKBF Enthusiast Free Member

    566 166
    Won't be an issue, do 5x£1000 if you're that worried
     
    Posted: Jun 24, 2016 By: boring-friday Member since: Jun 5, 2015
    #7
  8. JEREMY HAWKE

    JEREMY HAWKE UKBF Legend Full Member

    4,008 1,268
    I have already made it clear it does not matter what you tell you your bank you can do what you want put money take it out £1 or 1 million pounds .Why are you worried about what the bank says ? It does not matter . If the bank asked me questions like that I would tell them to F off .
    Register your business submit a accurate tax return each year You dont even need liability insurance but it is a good idea .
    THE BANK HAVE NO AUTHORITY ! THE TAX MAN DOES !
     
    Posted: Jun 24, 2016 By: JEREMY HAWKE Member since: Mar 4, 2008
    #8
  9. Newchodge

    Newchodge UKBF Big Shot Free Member

    12,465 3,236
    Perhaps you are worried that your bank will tell HMRC that you are depositing large amounts of cash?

    Don't worry. When HMRC come knocking on your door to ask where it came from, just tell them.

    No problem.
     
    Posted: Jun 24, 2016 By: Newchodge Member since: Nov 8, 2012
    #9
  10. john1989

    john1989 Guest

    0 0
    He's probably concerned that the bank can take the cash and freeze the accountant until they are happy that it is of a legal origin.
     
    Posted: Jun 24, 2016 By: john1989 Member since: Jan 1, 1970
    #10
  11. john1989

    john1989 Guest

    0 0
    Ignore
     
    Posted: Jun 24, 2016 By: john1989 Member since: Jan 1, 1970
    #11
  12. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    10,546 2,132
    You won it on the local race track
     
    Posted: Jun 24, 2016 By: Chris Ashdown Member since: Dec 7, 2003
    #12
  13. paulears

    paulears UKBF Big Shot Full Member

    3,931 974
    Off topic, but my uncle was virtually retired and got called in for a tax interview. They sat him down, and told him that according to their records they could find no trace of him ever paying any income tax, yet their enquiries showed him living in a nice house, in a nice area with two cars parked outside, both quite new. He said, that's quite correct, I've never paid any income tax.

    He was a professional gambler, and tax was paid at source from the bets. They went away, did some checking and told him they wouldn't be bothering him again. Gambling isn't income.

    Back on topic - you sound worried. Why not see if any local accountants are doing the common 30 mins free consultations. Ask the experts and when they say you are fine, believe them.
     
    Posted: Jun 24, 2016 By: paulears Member since: Jan 7, 2015
    #13
  14. beasty

    beasty , Full Member - Verified Business

    2,105 521
    You put 5k in out of the blue you will be asked where you got it, you will also most likely be introduced to someone who can talk to you more about investing (Notice if you lie to the teller you will have to stick with that lie during an interview!)

    I worked in a couple of banks as a teller a while back and there was never a magic button you press, when someone is suspected of money laundering the tellers ONLY job is to serve that customer and not arouse their suspicion, the systems i worked with, OFFERS would instantly appear and so they would be introduced to an offer that may be appropriate based on their new status this would mean that a manager might appear and say lets talk about ISAs.


    DO NOT LIE would be my advice, the Bank really does not care so just tell them straight!
     
    Last edited: Jun 25, 2016
    Posted: Jun 25, 2016 By: beasty Member since: Feb 4, 2013
    #14
  15. Joel Bissitt

    Joel Bissitt UKBF Contributor Free Member

    44 7
    Best to be honest and register the business and inform HMRC
     
    Posted: Jun 25, 2016 By: Joel Bissitt Member since: Jul 2, 2015
    #15
  16. beasty

    beasty , Full Member - Verified Business

    2,105 521
    Saying the bank has no authority may be correct, but the bank can the same day freeze your bank account as they are suspicious, HMRC on the other hand might get in touch in 3 months

    I was editing my post but could not submit, saying you sold a car is stupid, besides the fact you are a liar you are a liar that will likely be asked a tonne of follow up questions

    Sold a car for 5k
    Nice
    What type?
    What model?
    Engine? petrol diesel yadayada
    you are 22 that must have cost an arm and a leg to insure!
    NO direct debit for insurance
    weird you do not live at home (Not saying this outloud) but you can very quickly see that this person has lied and they would simply have their account frozen as cash is suspicious, it becomes very suspicious when you lie about the source.

    All you need is a bank teller with an interest in cars and you are quickly going to get caught out...

    Was the car a gift?

    You now damn well they have no disposable income so it must have been gift

    How long you had it?

    Who you get insurance with? etc etc
     
    Posted: Jun 25, 2016 By: beasty Member since: Feb 4, 2013
    #16
  17. Clare@ClarityTaxation

    [email protected] UKBF Regular Free Member

    185 32
    There are a few things you need to do.

    If you have started as a sole trader, just you on your own, then you need to:

    Call HMRC and tell them you're self employed. They will send you a 10 digit number called a UTR (unique tax reference) that you need to keep safe - you will need it when you complete a tax return, which you'll need to do each year.

    Open a new business bank account. You don't HAVE to, but it'll make life easier. It also means that if HMRC ever investigate you can simply give them your business records without them having automatic right to view your personal bank account. It also makes it easier for you to establish what was business related and what wasn't, as opposed to going through your personal statements and trying to figure out what things were years later!

    Open a business savings account and keep aside 20% of your income, you'll need it to pay your eventual tax bill. The way self assessment works it'll be years until your tax is due, and people often get into trouble because they forget and when the tax bill drops through their letterbox they've long spent the money.

    Keep copies of receipts and invoices. You can keep these electronically if you prefer, no need to keep paper. Perhaps look at an accounting package like Wave, Xero or Freeagent, or just keep a record of things on Excel - the more organised you are the lower your accountancy fees will be.

    Talk to an accountant in relation to completing your tax return each year. If you started after 6th April 2016 then your first return won't be due for ages yet, not until January 2018, but it's a good idea to sit down with someone now so you're prepared.

    If you think your business is going to generate a fair amount of money, in excess of £35,000 a year, then you may benefit from becoming a limited company. Again, talk to your accountant about this and they can advise further.

    In short - call or email an accountant! Many will do an initial chat free of charge, and it's well worth sorting early.
     
    Posted: Jun 26, 2016 By: [email protected] Member since: Jan 5, 2016
    #17
  18. TODonnell

    TODonnell UKBF Ace Full Member

    1,406 214
    Like Han Solo? Gads, I'd no idea banks were so vicious these days!

    I shall be on my best behaviour next time I go in to make a withdrawal.
     
    Posted: Jun 27, 2016 By: TODonnell Member since: Sep 23, 2011
    #18
  19. john1989

    john1989 Guest

    0 0
    Haha. I meant freeze the account!
     
    Posted: Jun 27, 2016 By: john1989 Member since: Jan 1, 1970
    #19
  20. Newchodge

    Newchodge UKBF Big Shot Free Member

    12,465 3,236
    OP I've thought of a perfect way to resolve this issue for you.

    Send me the money and I will put it into my bank account. If I am asked where it came from I can say, with perfect honesty, that you lent it to me. Then I will transfer it into your bank account (I will need the bank account details) and if you are asked you can say, with perfect honesty, that I am repaying the loan you gave me. Job done.

    I got the idea from an interesting little email I received recently from Nigeria. Unfortunately I am still waiting for the funds to be transferred from that one, but I guess it takes longer from abroad.
     
    Posted: Jun 27, 2016 By: Newchodge Member since: Nov 8, 2012
    #20
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