How much savings can you have in the bank

dicksy123

Hi,
1st posting! anyone know how much savings you can hold in a UK bank before the taxman gets to know about it

BruceyBonus

The taxman will know about the interest on all your savings. They probably don't know the balance - but they could find out if you're committing benefit fraud/tax fraud/money laundering/etc.

gozomark

other than for tax evasion reasons, why would you ask ?

00ec25

under the money laundering regulations every bank is required to inform HMRC when it receives deposits above a certain size, as you seem to want to avoid HMRC, I'm not going to tell you at what point they WILL catch you if you try to open lots of "little" accounts:rotfl:

dicksy123

gozomark wrote: »

other than for tax evasion reasons, why would you ask ?

Because I am trying to see if I can help someone avoid paying more tax than they need to!

dicksy123

BruceyBonus wrote: »

The taxman will know about the interest on all your savings. They probably don't know the balance - but they could find out if you're committing benefit fraud/tax fraud/money laundering/etc.

I was asking for someone who has come into a small amount of money, they wondered if they spread it around if it would attract less attention in small amounts, I used to work for the inland revenue and accounts only used to get 'flagged' if they went over a certain amount or a large deposit was made. I just wondered if it had changed since I left.
Thanks anyway.

talana

dicksy123 wrote: »

Because I am trying to see if I can help someone avoid paying more tax than they need to!

A bit of an ambiguous answer.
If this someone is genuinely paying more tax than they need to, then it can be sorted out in the open with the taxman having full knowledge. No need to hide it from anyone.

Rafter

dicsy,

There are all sorts of ways of investing legally and avoiding paying tax - ISAs being the best example.

Tax evasion, illegally trying to earn tax free income that you are not entitled to is breaking the law and I wouldn't get involved in trying to help a friend with this.

If it is a serious sum of money, I suggest they pay an IFA to work out a tax efficient way of investing that also meets their long term investment requirements.

R.