solicitor wants proof of funds

cyberrich

I'm buying a new home and today paid my solicitor his fee. I'm a self employed and get paid cash all the time. I've been saving a lot of my income at home in order to eventually pay the solicitor. He said no cash it had to be a bank transfer so i paid my savings into the bank transferred the money to him and now he wants to know the source. Well the source is from my earnings which I've been saving at home for several months. I managed to save which took over 6 months to earn. How else can I prove the source of the money if it is from my income as a self employed person.

Edi81

Can you evidence records e.g. Invoices or receipts to clients?

Money laundering reguiremenrs are very strict these days.

Why did you not deposit the cash regularly into a bank account?

Thrugelmir

cyberrich wrote: »

How else can I prove the source of the money if it is from my income as a self employed person.

As a self employed person you are suppose to maintain books of account. Same as everyone else in the same situation.

G_M

So how is he to know the cash comes from chiropody and not from immoral earnings?

How does he know you have (or will) declare the income to HMRC?

The answer is to produce (ideally) last years audited acounts and/or tax cetificate, or receipts, and/or current accounts for your business.

Where is the rest of the money coming from for the house purchase?

seashore22

It's fairly unusual in this day and age to keep £3,500 at home rather than pay it into the bank. I can see why the solicitor is wary.

A few years ago I had probably one of the smallest businesses in existence and still paid all my earnings into the bank and kept accounts.

If you are operating under the radar then I would expect to have further issues.

seashore22

Thinking about it, wouldn't the op have had to submit his accounts to the mortgage company (assuming he has a mortgage)? So there are accounts?

I don't know how the op proves where the cash came from at this point.

davidmcn

We can't really answer the question of what evidence will satisfy your solicitor - you'll need to explain the situation to them and ask them what they'll need. It's pretty difficult to prove the source of cash, and if it's all suddenly appeared in your account I can understand why it doesn't look convincing as being your regular turnover from your business.

cyberrich

Anyone would think I was some sort of criminal after reading these replies. I am certainly not operating under the radar as one of you has put it. I've been a registered tax payer since the 1980s. If anything was amiss I would not have been offered a mortgage. after having been put through all the necessary checks with the bank.

worried_jim

cyberrich wrote: »

If anything was amiss I would not have been offered a mortgage. after having been put through all the necessary checks with the bank.

And now the solicitor is doing the necessary checks required by the law for anti money laundering.

Thrugelmir

cyberrich wrote: »

Anyone would think I was some sort of criminal after reading these replies. .

We don't know you. All we can do is base our comments on our experience of what goes on in the wider real world. Simple as that.

G_M

cyberrich wrote: »

Anyone would think I was some sort of criminal after reading these replies. I am certainly not operating under the radar as one of you has put it. I've been a registered tax payer since the 1980s. If anything was amiss I would not have been offered a mortgage. after having been put through all the necessary checks with the bank.

No one is calling you a criminal.

We are simply pointing out that your solicitor has a duty to ensure you are not. We are explaining the difficulty your solicitor faces, given that you've effectively turned up with a suitcase of cash (OK, a suitcase taken to a bank and then transferred to him). He has obligations imposed n him by both the law, and his regulatory body, to undertake checks which you are not able to easily fulfill..

You asked, "How else can I prove the source.... " and we have suggested the normal procedure.

You implied your solicitor was making unfair demands and we explained why those demands were fair.

It seems strange that you have been able to satisfy the mortgage lender of the source of your funds, yet whatever you gave the lender is not available, or sufficient, for the solicitor....