Wages into my Mum's account

CLAPTON

mattcodes wrote: »

If interest is paid on the account then Im pretty sure HMRC will get a summary from the bank on the account tax aspect due to tax paid. Not sure the disclosure but i woudnt take a brain doctor to work backwards based on advertised rates.

If the account has a credit aspect (i.e. overdraft) then it will probably be reported to Experian/Equifax each month.

These a both avenues they could in theory explore if you were big fish and an investigation started. If you really cant get an account and you must use your mums name then have her open a basic bank account and use that (i.e. no interest and no credit aspect) but can accept bacs etc..

It would indeed require a brain doctor to work out the excessive amount paid into an account
last year my current a/c paid interst of £4.10 .. please work out how much excessive (ie. over my wildly varying in and out flows ) was due to unusual third party transfers

pvt

jonesMUFCforever wrote: »

If you say so - doubt if HMRC will be so easily convinced.

If HMRC are investigating you for suspected undeclared income, than they might come across this, which would mean that you need to explain it to them. But that is an unlikely event, and is easily explained in a satisfactory way.

Following your logic, I should worry that:

I reclaim may thousands per annum in reimbursement of cash expenses as part of my job. These go through my bank account, and are obviously not liable for tax;
My wife and I operate a joint acount, are our tax liabilities going to get mixed up?;
My son is paid cash for a casual job, he gives me the cash, I pay it into my account, and I then transfer it to his bank account;

The simple answer is that HMRC do not, and cannot, tax you on cashflow through your bank account.

pvt

amyellec

Thanks for all the replies. My Dad is going to do it instead. He is not self employed so there won't the be chance of any hassel.

Regards access in Spain, the only way I can do this and not pay massive amounts for transfers is Paypal - then I will use most of it to cover bills online or draw it into my Spanish account.

Its all a massive pain but needs must...

Degenerate

CLAPTON wrote: »

I paid for a holiday for 4 of my friends and thay have subsequently given me cheques for their share
I paid the subs for my son at a club we are both members of and he subsequently did a BACS transfer to my account
Daughter repaid me a largish sum that I had lent her last year too
I bought some stuf for my club and they repaid me with a cheque

Am I really to expect a full HMRC investigation because some brain surgeon has worked out that the interest paid on my current a/c is a fraction high than it otherwise would have been?

Are you self-employed like the OP's mother? The talk about interest payments is a red herring. Someone who is self-employed will be submitting an annual self-assessment return detailing all their business income and expenditure to HMRC. They may find their tax affairs investigated (for any reason or just at random) and then they will have to explain regular payments into their account that they haven't been declaring. It's a complication they can do without.

pvt wrote: »

The simple answer is that HMRC do not, and cannot, tax you on cashflow through your bank account.

True. They can ask a lot of questions though. They can demand documentary evidence to satisfy them. They can give you a lot of hassle you can do without. Isn't the situation best avoided if possible?