Can government check savings?

MikeR71

Quick question:

I am just wondering whether the government can check each person's balance in current and saving accounts held at private banks? Do they have permission to do this?

I am just wondering whether it's worth saving or just go out and spend spend spend!

nilrem_2

What an odd question? Are you saying that you won't save if you find out that the Government checks your accounts?

I suppose it's possible for them to get some authority or other to check up on you if they really wanted too, perhaps if they had evidence that you were involved in some large scale crime or something, but I don't think they would do so as a matter of course.

IR could investigate you if they suspected tax evasion but in answer to your question I imagine the government do not check every ones savings just in case you were up to something.

HappyMJ

MikeR71 wrote: »

Quick question:

I am just wondering whether the government can check each person's balance in current and saving accounts held at private banks? Do they have permission to do this?

I am just wondering whether it's worth saving or just go out and spend spend spend!

You need to give them permission. They cannot just check.

dunstonh

What do you mean by Government?

If there is a money laundering suspicion then it can be investigated without you knowing. Money laundering regs include tax evasion and benefit fraud. Outside of that, a court order is needed.

Are you planning to commit fraud?

MikeR71

Calm down everyone! LOL.
And thanks for the helpful answers.

No, I am no money launderer, and have no plans to commit fraud. I only ask because they keep asking how much I have saved when I fill benefit forms. I do have some savings but they are below the threshold that becomes significant (£6000). I was just wondering whether it's worth saving above threshold seeing that we lose so much if we do. Instead of saving I can buy household goods. That's all.

srcandas

MikeR71 wrote: »

Calm down everyone! LOL.
And thanks for the helpful answers.

No, I am no money launderer, and have no plans to commit fraud. I only ask because they keep asking how much I have saved when I fill benefit forms. I do have some savings but they are below the threshold that becomes significant (£6000). I was just wondering whether it's worth saving above threshold seeing that we lose so much if we do. Instead of saving I can buy household goods. That's all.

Why do you "lose so much"? In what way?

R_P_W

If you have savings do you NEED benefits? What kind of benefit?

I may be looking at this a bit simply here but I think benefits should be for people who would suffer real hardship if they didnt have them - not to allow people to supplement their savings or even 'spend spend spend' as you put it!

HappyMJ

MikeR71 wrote: »

Calm down everyone! LOL.
And thanks for the helpful answers.

No, I am no money launderer, and have no plans to commit fraud. I only ask because they keep asking how much I have saved when I fill benefit forms. I do have some savings but they are below the threshold that becomes significant (£6000). I was just wondering whether it's worth saving above threshold seeing that we lose so much if we do. Instead of saving I can buy household goods. That's all.

You mean the loss of £1 a week for every £250 you have in excess of £6,000.

Just spend it. You can spend whatever you get in benefits on anything you want.

nilrem_2

R_P_W wrote: »

If you have savings do you NEED benefits? What kind of benefit?

I may be looking at this a bit simply here but I think benefits should be for people who would suffer real hardship if they didnt have them - not to allow people to supplement their savings or even 'spend spend spend' as you put it!

Perhaps you are being a little unfair TBH. Mike has stated that his savings are below the £6000 limit which is not a great deal of savings in the grand scheme of things. (IMHO)

sorcerer

It's perfectly within the rules to have upto £6000 in savings, afterall I don't think you could expect somebody on benefits to always have 0 in the current account.

MikeR71

HappyMJ wrote: »

You mean the loss of £1 a week for every £250 you have in excess of £6,000.

Just spend it. You can spend whatever you get in benefits on anything you want.

Yes, my wife and I trying to save for our own house and the only benefit we get is child benefit and a little help with nursery fees as part of the child element.

£1 for every £250 seems grossly over the top. No saving gives you such a return so what does the government base this on I never know. It's nearly 20% if I am not mistaken?

I just want to make sure I don't break any laws or be labelled a benefit cheat. If I go by the government's own rules then I should be fine.