best way to put lump sum of cash into bank account?

COOLTRIKERCHICK

opinions4u wrote: »

Sensibly managed, you should have been able to get 5% or 6% a year prior to 2009 and 3% since.

On £10k that would have been around £2,500 before tax.

They will ask where the money's come from. You'll tell the truth. Then they'll accept the deposit.

If he tells the bank the truth, then the bank might want him to open a business account..

They will prob not ask,

SailorSam

There was a story on Bbc news earlier that it's not just the OAP or person trying to avoid tax that keeps cash under the mattress now. So many people distrust banks and interest rates are so low. it's estimated that there are billions, i think they said in eccess of £5 billion in cash in peoples homes. ........ None of it is mine.

pearley1981

Thanks for the advice!!
its just cash ive put aside and its ended up building to £20000.
i was going to put it in the bank and use it as a deposit for a property...my main concern was the bank would contact the inland revenue...hopefully they will just accept it without any questions...

pearley1981

SailorSam wrote: »

There was a story on Bbc news earlier that it's not just the OAP or person trying to avoid tax that keeps cash under the mattress now. So many people distrust banks and interest rates are so low. it's estimated that there are billions, i think they said in eccess of £5 billion in cash in peoples homes. ........ None of it is mine.

The problem is once you have saved it how can you use it for example putting it down as a house deposit?

SailorSam

Think the best advice if you're worried is, pay it in a bit at a time over the next few months.
If you're self employed a deposit of a couple of hundred twice a week may be seen as normal banking.

If you try and put cash down as a deposit on a house even the solicitor will ask how you came to get it.
I'm not saying he want accept it but 'cos of money laundering laws he needs to be sure it's clean.

JonnyBravo

pearley1981 wrote: »

Thanks for the advice!!
its just cash ive put aside and its ended up building to £20000.
i was going to put it in the bank and use it as a deposit for a property...my main concern was the bank would contact the inland revenue...hopefully they will just accept it without any questions...

Well you have no reason to worry.
There is no tax to pay on money you've saved.
It's only money you've earnt and not paid tax on they will be interested in.
I'm sure you'll sleep soundly now.

ses6jwg

Its likely they will report you as its a suspicious transaction and smells like money laundering.

bobthedambuilder

pearley1981 wrote: »

I work as a lanscaper and have been saving cash for 6-7 years..it would have been pointless putting it a savings account as the interest rates were so low..i wanted to put the cash in the bank but not sure what they might say...??

pearley1981 wrote: »

Thanks for the advice!!
its just cash ive put aside and its ended up building to £20000.
i was going to put it in the bank and use it as a deposit for a property...my main concern was the bank would contact the inland revenue...hopefully they will just accept it without any questions...

Reading between the lines of these 2 quotes, some might infer that this money is the result of undeclared cash income from your landscaping activities (unless you did declare all that income to HMRC, but if so why the concern in the second post?).

If this were the case, what you are asking contributors to this forum to do is to advise you on tax evasion and money-laundering.

I apologise if I've expressed an incorrect and cynical interpretation of the situation.

JonnyBravo

pearley1981 wrote: »

The problem is once you have saved it how can you use it for example putting it down as a house deposit?

There is no problem.
Once they look into your affairs they will see that you have saved it. They won't find any income which you've not paid tax on, so there is nothing to worry about.... is there?

Anyone can save without fear of retribution.

It is only those who have earnt money and not declared the tax due who need have anything to fear from depositing large cash sums in the bank.

LeoC

When I sold my flat and the money from the sale reached my account (via my solicitors), the bank called me to ask me where the money had come from... I then moved this money to another bank to get a better rate of interest, and again this new bank called me to ask me where the money came from. This was in 2006. Not sure what's happening these days.