oh god is this taxable income?

novamation

I had another thread on this forum a few weeks ago, where I asked for help regarding my Mother, - she is unable to provide identity to withdraw money from her bank account, and how our workaround up till now has her writing out cheques to me, and I put them in my account, and then I withdraw cash to give to her...

I'm just finishing up the current tax return, and it occurred to me that it could be seen as an income?:eek:

I've just checked the dates, and there's none to declare in the current tax return I'm just finishing so it's not panickingly urgent,

but in the current tax year 11/12 there's about 2k of transactions between us... is this a problem?

CLAPTON

no, it's not earned income

Savvy_Sue

CLAPTON wrote: »

no, it's not earned income

agree, but you might want to keep any 'evidence' of the arrangement just in case HMRC think it IS income!

sorcerer

I would think it would be classed as a "Gift", even if you give the money back. Just need to be a little carefull for Inhertence tax issues.

CLAPTON

sorcerer wrote: »

I would think it would be classed as a "Gift", even if you give the money back. Just need to be a little carefull for Inhertence tax issues.

why do you think that?

C.Lightowler

as long as both you and your mother would be able to explain it and evidence to back it up to HMRC if they did investigate you and asked about it then you'll be fine. it's not income so no need to put it on your tax return

tyllwyd

You could maybe have a cash book where she signs to show she's received the money and keep that with receipts of withdrawals. That might be a good idea anyway in case there is any question later (especially if there is any danger of her becoming confused as she gets older, you don't want a situation where you end up being under suspicion of having stolen her money). It might even be worth setting up a separate account where the only money going in and out is her cheques, so that you can both see exactly where you are.

And edited to say - it isn't an easy topic, but if your mum is starting to have trouble managing her financial affairs, it might be worth looking into setting up a lasting power of attorney (LPA). It is much easier to get it all in place, even if it is never used, while your mum has mental capacity.

John_Pierpoint

.......an alternative might be for you to be an "authorised signatory" on her account and to pay as much as possible electronically or by cheque, so that there is the minimum of free cash slopping about.
I muddled through like this with my mum for 4 long years after she lost her signature and most of her financial marbles following a stroke.

There are several threads on the forum about Power of Attorney, Enduring PoA and Lasting PoA, which you will need should you come up against a situation where you need to sign official documents on the behalf of another.

Here is one:
https://forums.moneysavingexpert.com/discussion/3704987

Mikeyorks

I put a considerable amount of money into my wife's housekeeping account every month. Does anyone consider there's any risk of HMRC (mis) interpreting that as her income?

Perhaps I should 'photo her overflowing boot after each weekly shop as evidence? Or is this - despite it being 31st Jan - just a bit of a 'slow News day' on 'cutting Tax?

The only potential problem the OP has is from siblings worried he's undermining their inheritance. There is no risk from HMRC misunderstanding - as post #2 clarifies.