Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • cyberrich
    • By cyberrich 9th Jun 17, 7:46 PM
    • 6Posts
    • 0Thanks
    cyberrich
    solicitor wants proof of funds
    • #1
    • 9th Jun 17, 7:46 PM
    solicitor wants proof of funds 9th Jun 17 at 7:46 PM
    I'm buying a new home and today paid my solicitor his fee. I'm a self employed and get paid cash all the time. I've been saving a lot of my income at home in order to eventually pay the solicitor. He said no cash it had to be a bank transfer so i paid my savings into the bank transferred the money to him and now he wants to know the source. Well the source is from my earnings which I've been saving at home for several months. I managed to save which took over 6 months to earn. How else can I prove the source of the money if it is from my income as a self employed person.
    Last edited by cyberrich; 09-06-2017 at 9:05 PM.
Page 1
    • Edi81
    • By Edi81 9th Jun 17, 7:51 PM
    • 274 Posts
    • 161 Thanks
    Edi81
    • #2
    • 9th Jun 17, 7:51 PM
    • #2
    • 9th Jun 17, 7:51 PM
    Can you evidence records e.g. Invoices or receipts to clients?

    Money laundering reguiremenrs are very strict these days.

    Why did you not deposit the cash regularly into a bank account?
    • Thrugelmir
    • By Thrugelmir 9th Jun 17, 7:53 PM
    • 55,182 Posts
    • 48,375 Thanks
    Thrugelmir
    • #3
    • 9th Jun 17, 7:53 PM
    • #3
    • 9th Jun 17, 7:53 PM
    How else can I prove the source of the money if it is from my income as a self employed person.
    Originally posted by cyberrich
    As a self employed person you are suppose to maintain books of account. Same as everyone else in the same situation.
    “ “Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.” Sir John Marks Templeton
    • G_M
    • By G_M 9th Jun 17, 7:57 PM
    • 41,077 Posts
    • 47,195 Thanks
    G_M
    • #4
    • 9th Jun 17, 7:57 PM
    • #4
    • 9th Jun 17, 7:57 PM
    So how is he to know the cash comes from chiropody and not from immoral earnings?

    How does he know you have (or will) declare the income to HMRC?

    The answer is to produce (ideally) last years audited acounts and/or tax cetificate, or receipts, and/or current accounts for your business.

    Where is the rest of the money coming from for the house purchase?
    • seashore22
    • By seashore22 9th Jun 17, 7:58 PM
    • 539 Posts
    • 1,050 Thanks
    seashore22
    • #5
    • 9th Jun 17, 7:58 PM
    • #5
    • 9th Jun 17, 7:58 PM
    It's fairly unusual in this day and age to keep £3,500 at home rather than pay it into the bank. I can see why the solicitor is wary.

    A few years ago I had probably one of the smallest businesses in existence and still paid all my earnings into the bank and kept accounts.

    If you are operating under the radar then I would expect to have further issues.
    Last edited by seashore22; 09-06-2017 at 8:01 PM.
    • seashore22
    • By seashore22 9th Jun 17, 8:04 PM
    • 539 Posts
    • 1,050 Thanks
    seashore22
    • #6
    • 9th Jun 17, 8:04 PM
    • #6
    • 9th Jun 17, 8:04 PM
    Thinking about it, wouldn't the op have had to submit his accounts to the mortgage company (assuming he has a mortgage)? So there are accounts?

    I don't know how the op proves where the cash came from at this point.
    • davidmcn
    • By davidmcn 9th Jun 17, 8:05 PM
    • 5,787 Posts
    • 5,535 Thanks
    davidmcn
    • #7
    • 9th Jun 17, 8:05 PM
    • #7
    • 9th Jun 17, 8:05 PM
    We can't really answer the question of what evidence will satisfy your solicitor - you'll need to explain the situation to them and ask them what they'll need. It's pretty difficult to prove the source of cash, and if it's all suddenly appeared in your account I can understand why it doesn't look convincing as being your regular turnover from your business.
    • cyberrich
    • By cyberrich 9th Jun 17, 10:45 PM
    • 6 Posts
    • 0 Thanks
    cyberrich
    • #8
    • 9th Jun 17, 10:45 PM
    • #8
    • 9th Jun 17, 10:45 PM
    Anyone would think I was some sort of criminal after reading these replies. I am certainly not operating under the radar as one of you has put it. I've been a registered tax payer since the 1980s. If anything was amiss I would not have been offered a mortgage. after having been put through all the necessary checks with the bank.
    • worried jim
    • By worried jim 9th Jun 17, 10:51 PM
    • 8,542 Posts
    • 13,016 Thanks
    worried jim
    • #9
    • 9th Jun 17, 10:51 PM
    • #9
    • 9th Jun 17, 10:51 PM
    If anything was amiss I would not have been offered a mortgage. after having been put through all the necessary checks with the bank.
    Originally posted by cyberrich
    And now the solicitor is doing the necessary checks required by the law for anti money laundering.
    "Only two things are infinite-the universe and human stupidity, and I'm not so sure about the universe"
    Albert Einstein
    • Thrugelmir
    • By Thrugelmir 9th Jun 17, 10:56 PM
    • 55,182 Posts
    • 48,375 Thanks
    Thrugelmir
    Anyone would think I was some sort of criminal after reading these replies. .
    Originally posted by cyberrich
    We don't know you. All we can do is base our comments on our experience of what goes on in the wider real world. Simple as that.
    “ “Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.” Sir John Marks Templeton
    • G_M
    • By G_M 9th Jun 17, 11:35 PM
    • 41,077 Posts
    • 47,195 Thanks
    G_M
    Anyone would think I was some sort of criminal after reading these replies. I am certainly not operating under the radar as one of you has put it. I've been a registered tax payer since the 1980s. If anything was amiss I would not have been offered a mortgage. after having been put through all the necessary checks with the bank.
    Originally posted by cyberrich
    No one is calling you a criminal.

    We are simply pointing out that your solicitor has a duty to ensure you are not. We are explaining the difficulty your solicitor faces, given that you've effectively turned up with a suitcase of cash (OK, a suitcase taken to a bank and then transferred to him). He has obligations imposed n him by both the law, and his regulatory body, to undertake checks which you are not able to easily fulfill..

    You asked, "How else can I prove the source.... " and we have suggested the normal procedure.

    You implied your solicitor was making unfair demands and we explained why those demands were fair.

    It seems strange that you have been able to satisfy the mortgage lender of the source of your funds, yet whatever you gave the lender is not available, or sufficient, for the solicitor....
    Last edited by G_M; 09-06-2017 at 11:48 PM.
    • cyberrich
    • By cyberrich 9th Jun 17, 11:43 PM
    • 6 Posts
    • 0 Thanks
    cyberrich
    A suitcase full of cash? It was an envelope containing £20 notes. £3,500 is not a fortune.
    • G_M
    • By G_M 9th Jun 17, 11:50 PM
    • 41,077 Posts
    • 47,195 Thanks
    G_M
    Now you are splitting hairs.It's an expression.

    Whether it's a suitcase or an envelope does not alter the solicitor's duty!
    • seven-day-weekend
    • By seven-day-weekend 10th Jun 17, 9:18 AM
    • 29,366 Posts
    • 54,827 Thanks
    seven-day-weekend
    When we lived in Spain, we only kept enough in the bank to pay the direct debits with, and kept the rest in the house. The reason for this was that we were on a very small income, and Spanish Banks can raid your account to pay (for example) a tax bill. We wanted control over when we paid these bills.

    However, the money arrived in the bank in the usual way, from my husband's Teachers' Pensions. We just drew it out, apart from the dd money and kept it in the house.

    I think the OP should be able to show the solicitor the money going through his books, surely that would suffice?
    To love someone is to learn the song in their heart and to sing it to them when they have forgotten it
    'I believe in Christianity as I believe that the sun has risen. Not only because I see it, but because I see everything by it': C.S. Lewis
    St. Augustine — 'In essentials, unity; in non-essentials, liberty; in all things, charity.'
    • martindow
    • By martindow 10th Jun 17, 10:32 AM
    • 7,172 Posts
    • 3,987 Thanks
    martindow
    Anyone would think I was some sort of criminal after reading these replies. I am certainly not operating under the radar as one of you has put it. I've been a registered tax payer since the 1980s. If anything was amiss I would not have been offered a mortgage. after having been put through all the necessary checks with the bank.
    Originally posted by cyberrich
    Where's the problem then? You will have accounts for your business and can submit your tax return for 2016/17 now if you haven't already done that. For the last couple of months you should have accounts ongoing.

    This should reassure your solicitor of the origin of the cash under the mattress. If you use an accountant it may be worth getting them to draw up something to give to your solicitor.
    • G_M
    • By G_M 10th Jun 17, 2:52 PM
    • 41,077 Posts
    • 47,195 Thanks
    G_M
    ....

    This should reassure your solicitor of the origin of the cash under the mattress..
    Originally posted by martindow
    OP did not say it was kept under the mattress. It may well have been kept openly on the kitchen window sill for all to see.
    • AdrianC
    • By AdrianC 10th Jun 17, 7:17 PM
    • 15,075 Posts
    • 13,392 Thanks
    AdrianC
    Anyone would think I was some sort of criminal after reading these replies.
    Originally posted by cyberrich
    Which is exactly what the solicitor needs to prove.

    I am certainly not operating under the radar as one of you has put it.
    Then it will be straightforward to provide your working management accounts to the solicitor.

    I've been a registered tax payer since the 1980s.
    Which says nothing at all about the proportion of your turnover going through the books.

    If anything was amiss I would not have been offered a mortgage. after having been put through all the necessary checks with the bank.
    Then you already have all the necessary paperwork available, right?
    • Clutterfree
    • By Clutterfree 10th Jun 17, 7:29 PM
    • 3,455 Posts
    • 18,945 Thanks
    Clutterfree
    If customers paid you in cash, and all is above board, then you should have the invoices relating to each amount they paid to you.
    Just show the solicitor all the invoices that total the £3500 cash you received from them.
    I cannot understand why you didn't pay it into your business account in the first place because your accountant will need to see the transactions when doing your books.
    Ageing is a privilege not everyone gets
    • MisterP123
    • By MisterP123 11th Jun 17, 10:21 AM
    • 160 Posts
    • 178 Thanks
    MisterP123
    • Chapuys
    • By Chapuys 11th Jun 17, 11:29 AM
    • 127 Posts
    • 102 Thanks
    Chapuys
    Again, this is not personal. The solicitor needs to prove you are not money laundering. Every house buyer goes through the same process, just it is easier to see where some other people's money has come from (work pay into bank accounts usually).

    Just submit your invoices, company accounts or back of napkins to the solicitor.
    Anything I say in no way constitutes financial advice and anything you do is your own decision.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,176Posts Today

6,851Users online

Martin's Twitter
  • Shana tova umetuka - a sweet Jewish New Year to all celebrating. I won't be online the rest of t'week, as I take the time to be with family

  • Dear Steve. Please note doing a poll to ask people's opinion does not in itself imply an opinion! https://t.co/UGvWlMURxy

  • Luciana is on the advisory board of @mmhpi (we have MPs from most parties) https://t.co/n99NAxGAAQ

  • Follow Martin