Saving for someone else

SelbyJay_2

I've been asked to look after some money for someone and i dont know what to do it.

The money has been aquired in a legal way, so there's no concerns there. The thing is, i'm not sure what tax implications there are for saving money that belongs to someone else. I dont want to leave the money in my current account, but the person needs to access it freely. They cant have a bank account due to bankrupcy, which is why i have it.

Anyone have any ideas or knowledge about how i can keep the money safe, but without getting involved in complex tax issues?

RayWolfe

Don't go anywhere near this.
There are tax, legal and bankruptcy issues.

Paul_Herring

They cant have a bank account due to bankrupcy

Patently incorrect: http://www.bankruptcyhelp.org.uk/bankruptcy_and_bank_accounts.asp

I'm with Ray on this one.

vaporate

Can't your friend get a natwest step account? then deposit the money there.

There is no cheque book or overdraft facility so there is no risk to the bank.

opinions4u

SelbyJay wrote: »

The money has been aquired in a legal way, so there's no concerns there.

The thing is, i'm not sure what tax implications there are for saving money that belongs to someone else.

If the savings are held in your name you are liable for the tax on the interest earned.

I dont want to leave the money in my current account, but the person needs to access it freely. They cant have a bank account due to bankrupcy, which is why i have it.

Are they a bankrupt who still has liabilities or are they discharged from their bankruptcy?

If it's the former, then this money needs to be declared to the bankruptcy trustee. Do you really want to be involved in concealing this money?

If it's the latter then your friend should have no difficulties opening a savings account with the majority of high street providers. They will even provide one of those new fangled cash card things to let your friend access the money via a hole in the wall.

To paraphrase RayWolfe - don't touch it with a bargepole.

SelbyJay_2

Thanks for the responses.

It seems harmless from the outset, just keeping hold of a bit of cash for a while, but i guess i was right to follow my instinct and get some clarification!

Cheers

Gymgenius

SelbyJay wrote: »

Thanks for the responses.

It seems harmless from the outset, just keeping hold of a bit of cash for a while, but i guess i was right to follow my instinct and get some clarification!

Cheers

I'm sure your bankrupt mate's creditors won't think it harmless if they don't get paid what they're owed because (s)he is hiding some undeclared cash with a friend.

...not to mention the fact that your friend will have committed perjury by concealing the cash in the first place.