Lloyds bank asking for employment information

tyllwyd

I've got a Lloyds bank classic account (so no frills at all), and when I logged in this morning they asked me to update the information they hold about me.


They asked for my employment status (which is self-employed) and the name of my employer or the company I am self-employed through (I'm a sole trader, so I just put down my own name and address).


Then they asked for my net income and frequency of payment. I don't have a net income as such, or a frequency of payment - I invoice as and when and pay my self-assessment tax at the end of of the year. I didn't want to claim to have an 'income' when I don't (although I do make a taxable profit each year) so I ended up leaving that as zero.


I'm not sure if that was the right thing to do - is it likely to have a negative impact on anything else?

Cycrow

they are most likely asking for your income so they can use it for their internal scoring to offer you credit products in the future.

its unlikely to have any affect on your current account, and if you have no plans of getting credit from them any time soon, then i really won't make a difference to you.

if/when you want credit from them, you could always update the information

Atidi

tyllwyd wrote: »

I've got a Lloyds bank classic account (so no frills at all), and when I logged in this morning they asked me to update the information they hold about me.


They asked for my employment status (which is self-employed) and the name of my employer or the company I am self-employed through (I'm a sole trader, so I just put down my own name and address).


Then they asked for my net income and frequency of payment. I don't have a net income as such, or a frequency of payment - I invoice as and when and pay my self-assessment tax at the end of of the year. I didn't want to claim to have an 'income' when I don't (although I do make a taxable profit each year) so I ended up leaving that as zero.


I'm not sure if that was the right thing to do - is it likely to have a negative impact on anything else?

I too have a Lloyds bank classic account (with vantage) and logged into internet banking this morning.

I was not asked any such information.

Have you perhaps applied for a loan, (increased) overdraft or other credit facility recently?


I'm not sure, otherwise, why they have asked you such information as they can see what is entering and leaving your account (unless it's clearly not your main account)

As for income, you say you are self employed and have no income. If that were true, I'd call that unemployed
If your self employment is earning you money, that is your income (plus any other forms of income) Even benefits are considered income.
But you say you pay self assessment. That's another indication you have an income (unless it's just capital gains tax, etc)

Edit: Thinking about it, are all or any of your self employment takings actually being put through this personal bank account? :huh:

oldagetraveller

Rather than rely on speculative answers on here, why not 'phone and ask them?

tyllwyd

Atidi wrote: »

I too have a Lloyds bank classic account (with vantage) and logged into internet banking this morning.

I was not asked any such information.

Have you perhaps applied for a loan, (increased) overdraft or other credit facility recently?


I'm not sure, otherwise, why they have asked you such information as they can see what is entering and leaving your account (unless it's clearly not your main account)

As for income, you say you are self employed and have no income. If that were true, I'd call that unemployed
If your self employment is earning you money, that is your income (plus any other forms of income) Even benefits are considered income.
But you say you pay self assessment. That's another indication you have an income (unless it's just capital gains tax, etc)

I haven't applied for any credit with them (or anywhere else) so it was quite random.


Yes, I do make a profit from my self-employment and pay income tax, but it can vary a massive amount from one year to the next, and it isn't paid daily/weekly/monthly/annually so even if I put an estimated total in the net income box, I couldn't fill in the frequency of payment box that followed.


What I don't understand is that if they recognise that people might be self-employed, why they have a form that can only sensibly be completed by someone who is employed, and don't give an option that fits self-employment.


Anyhow, I'm not planning to apply for credit so hopefully it won't make too much of a problem.

JohalaReewi

Had the same from Halifax the other day. I declined the offer to fill in the details.

henm2

Due to anti moneylaundering legislation (AML) a bank is obliged to ask for this information when running an account. see http://www.hmrc.gov.uk/mlr/your-role/resposibilities.htm

Atidi

henm2 wrote: »

Due to anti moneylaundering legislation (AML) a bank is obliged to ask for this information when running an account. see http://www.hmrc.gov.uk/mlr/your-role/resposibilities.htm

According to that link, such information may be required when establishing a business relationship

I can't see any requirement to disclose/update net income and frequency of receiving such income. As I said, surely such details would be easily identifiable to the bank if the same were passing through the bank account.

So again I ask the OP, are all your self employment takings passing through this personal account?

tyllwyd

Atidi wrote: »

.... So again I ask the OP, are all your self employment takings passing through this personal account?

Yes - I know I should strictly have a business bank account, but they haven't complained so far! It's not actually that complicated, only cheques/BACS transfers from quite large companies, no more than say three in any month, and then I transfer the money out to the account I use day to day. I don't deal with the public or handle cash. (And it is all above board and declared for self-assessment tax.) And we are not talking huge sums of money - probably more like £15K before tax in a year.

Atidi

tyllwyd wrote: »

Yes - I know I should strictly have a business bank account, but they haven't complained so far! ....

Maybe they've only just suspected you ...which is why they now asked you ... and you've just confirmed it for them

They don't usually complain anyway, they just usually put you on their business banking tariff.
(although they could close the account :eek:)

tyllwyd

Atidi wrote: »

Maybe they've only just suspected you ...which is why they now asked you ... and you've just confirmed it for them

They don't usually complain anyway, they just usually put you on their business banking tariff.
(although they could close the account :eek:)

Yes, I guess that is possible. I dunno though, Lloyds have never struck me as being that much on the ball. It did look much more like a marketing exercise.