Is there a maximum amount you can pay an individual?

pjclar02

CLAPTON wrote: »

No, in law gifts are tax free.
.

Which law would that be?

w211

What about tips, aren't they classed as gifts, and they're taxable?

What if you're a chauffeur, who's client just won at Ascot, and the client gives the chauffeur a £100 or so, as a tip/gift.

Is that taxable? Or are winnings not taxable, even though it changed hands?

thenudeone

"gifts" which are clearly related to an employment even if not contractually due, (such as tip) and even if not paid by the employer (eg a sales bonus paid by a car manufacturer directly to an employee of a car dealer) are taxable.

Most people wouldn't regard them as gifts because they relate to a commercial / professional arrangement, and not in a personal capacity.

InsideInsurance

Jbc wrote: »

Not sure if this is the right forum for this question, but I wondered if there is a maximum amount you can pay an individual into their bank account?

For example, could you pay £25,000 into someone's personal account, or would you have to start completing paperwork/declaring it/the recipient has to declare it/tax etc?

There is no legal maximum you can transfer however once you get over certain threasholds then it would possibly become subject to anti-money laundering checks. In the majority of cases this may delay the payment very slightly and only if concerns are raised by whats found could form filling etc come into play.

From a practical perspective, as the sender, there may be limits on single transfers or daily limits imposed by your bank but these are operational limits and not legal ones.