Tax investigation - stressed!

Pumpkinface_2

Oh dear, I think being evasive could well have been the trigger. The NatWest chap can see your financial history anyway so I don't know why didn't just say, "that's from my parents" or whatever. All staff in the financial sector have a duty to report suspicious looking transactions, I think he followed proper process considering your responses.

That said, it doesn't sound like you have anything to worry about other than the inconvenience. As others have said, there is nothing wrong with receiving money from parents and it happens every day.

tyllwyd

I agree, it sounds as if that mortgage interview was the trigger - if you look at it from the bank employee's point of view, you have turned up with a substantial cash deposit, and you didn't give him a straight answer when he asked where it had come from. At that point he was probably obliged to flag it up to the bank, and for them to pass information on to other authorities to follow up.

I don't know if HMRC would accept online printouts, although I would have expected they would if they decide that everything looks in order and they don't need to dig deeper - the best thing might be to give them a ring and ask.

jedeye

I don't know what the HMRC themselves can see of my financial records, but when I did initially call them about this issue they started quoting the large transactions that I've had over the years in my Natwest account only.

My family's financial help has just allowed me to become a very efficient saver - this situation though makes me want to become a spender now!

I've just returned from Natwest. I've requested duplicate statements for my current account and my e-savings account with them. It cost me £5 per account - which isn't as bad as I thought.

jedeye

MrCarrot

I'm not convinced it would have been the NatWest interview that triggered it.

When I applied for my first mortgage I had substantial savings. The bank asked where I had got this money from. My reply was, "I've worked and earnt it, where else do people get their money from?"

I think when people take out their first mortgage, the bank are concerned that their deposit has been funded entirely by their parents and they are concerned whether the individual will be able to make the monthly payments of their own accord. This is the more likely reason why Natwest asked where the money came from.

Nosht

Basically if you have done nothing wrong then you have nothing to fear.
The ball is in their court in trying to prove wrong.
That said, it can be very intimidating to be under investigation & if it comes to this then the services of an Expert Tax Specialist must be employed for your own sanity. Do not answer any questions or enquiries yourself that's what you are paying the specialist for. As you seem to be the worrying kind then it is worth the expense just for peace of mind.


Regards,


N.

jedeye

After around 6 months of my investigation, the HMRC replied back saying all my matters to the tax year April 2009 are fine!

A happy outcome as this was like a shadow over me for the last 6 months (in which I've managed to move house and make my wife pregnant again!!).

In the end there was 2 rounds of communication. I supplied all my bank statements and stocks and shares statements and any other financial statements. In my accompanying letter I mentioned that my other sources of cash in my account arose from a redundancy, my parents gifts and from an insurance claim for my house burglary.

In December 2009 they replied asking for all statements from my joint account with my wife, proof of redundancy and insurance claim and all gift from my parents from April 2004 to present.

They've just returned all the paperwork and said no more investigation is required.

Thank you for all comment which were all useful. I would lean towards the advice of only supplying and disclosing the information which they solely ask for, and no more.

Regards,

jedeye

dzug1

tyllwyd wrote: »

(Assuming it is genuine), do you think it could be that the bank itself notified them in case of money laundering? I'm just speculating, but perhaps having an unusually high amount of cash in a current account - not in a savings account - and regularly receiving large amounts of money from a private bank account or as cash deposits puts the bank on alert? Obviously the OP knows that his parents are not drug dealers or international criminals, but the bank doesn't.

Banks DO have to notify the authorities about deposits over a certain threshold, and of ANY deposits they are suspicious about (eg where the depositor has been evasive about where the money has come from) - but I didn't think it was HMRC, more some offshoot of the Fraud squad.

Given that a bank employee can be personally liable for penalties if he doesn't comply then I suspect 'common sense' (which is in short supply anyway) goes out of the window. He will play safe and report.

PlutoinCapricorn

It is always good to get some feedback from posters, especially when the outcome is so satisfactory.

People say that if you have done nothing wrong then you have nothing to be afraid of, but the stress and uncertainty can have a bad effect, as can the horrible thought that you will be considered guilty until you are proved innocent.

BoGoF

HMRC does have a money laundering unit/proceeds of crime unit and as I understand it unless you can demonstrate it came from legitimate source the money going into the account can be taxed as undeclared income.

As the others have said you can demonstrate it came from legal sources so nothing to worry about.