Unemployed and depositing money in bank account?

JayBonHan

I left my first job earlier this year (for a number of reasons) and have been looking for work since then. I had saved up a decent amount from my job and still live with my parents. My Dad gives me a decent amount of money every month to look after myself. I don't like keeping cash so usually deposit that money straight into my Lloyds account (sometimes £300+ at a time). I'm now starting to worry that this might be a bad idea

I don't really know much about these things. Am i okay depositing that money without worrying or is it something that i should stop doing? Will the bank start asking questions? Will i get in any trouble for being unemployed and depositing money into my bank account?

Also, one more quick question. Like i said, i dont know much about paying tax etc but after checking my payslips for the job i left, I noticed that i didnt pay any tax.For example, it says 'taxable pay' - ££££ and then 'tax paid' - 0:00. It then says 'Nat Ins and then have a different amount next to that on each payslip (so i know ive been paying national insurance but im not sure about tax)

Is that normal for a first job? The company i worked for used P.A.Y.E and i thought that that automatically takes tax pay from my wages? Was that something i should have done myself because I have no idea? (i thought only self employed people file their own taxes)

I am hoping to be starting a new job soon so I really dont want there to be any problems. I know i sound stupid but i really want to know about these things so i know im not doing anything illegal

maxximus75

You wont get into trouble depositing money into your account because you are unemployed.


The bank wouldn't know this unless you have told them but even then, it shouldn't make any difference.


Even today, some people get paid their wages cash and would need to deposit this way.


You do have a tax free allowance each year so depending on what your wages are, you may not have paid any tax so far?


Was you a PAYE employee?


The best way to check is that you will get a P45 from your last employer after you have left. This will detail your contributions to tax, NI, and also will state your tax code.


I hope the above helps some.

JayBonHan

I was a PAYE employee

Ive just checked a P60 that was sent to me last year and it says -

Pay and Income Tax details -
In this employment - £7215 , Tax deducted - £0.00

boo_star

JayBonHan wrote: »

I was a PAYE employee

Ive just checked a P60 that was sent to me last year and it says -

Pay and Income Tax details -
In this employment - £7215 , Tax deducted - £0.00

Given that the personal allowance for 17/18 was £11,500, you paid the correct amount of tax.

xylophone

It is kind of your father to make you a regular allowance - he could set up a SO to make the monthly payment from his bank to yours.

boo_star

xylophone wrote: »

It is kind of your father to make you a regular allowance - he could set up a SO to make the monthly payment from his bank to yours.

It'd probably be better that he keeps making the payment manually. We don't want him coming on here asking for advice on how to get back the £xxxx his son has because he forgot about the SO.

EachPenny

JayBonHan wrote: »

I left my first job earlier this year (for a number of reasons) and have been looking for work since then. I had saved up a decent amount from my job and still live with my parents. My Dad gives me a decent amount of money every month to look after myself. I don't like keeping cash so usually deposit that money straight into my Lloyds account (sometimes £300+ at a time). I'm now starting to worry that this might be a bad idea

I don't really know much about these things. Am i okay depositing that money without worrying or is it something that i should stop doing? Will the bank start asking questions? Will i get in any trouble for being unemployed and depositing money into my bank account?

If it is genuinely money your dad is giving you as a gift then you have nothing to worry about. If it were money you were earning 'cash in hand' then it is possible you might have a problem at a later date.

If your dad is withdrawing the cash from his account and giving it to you then there will be a trail so you could prove the source of funds wasn't from employment if enquiries were made. But it might be better still for your dad to transfer the money from his account to yours directly by internet or phone banking so the link is clearer, and it would also avoid any risk involved in walking around town with £300 cash in your hand.

18cc

You don't mention it but one thing you might want to consider is if you are unemployed are you claiming any benefits EG Jobseeker's Allowance if you are then you need to declare any cash given to you even as a gift from your dad and they will use that as income and reduce your benefits accordingly

if you don't declare it and they audit your bank statements they will see the money going in and will not be best pleased to say the least

If you are not claiming any benefits then disregard the above

Flobberchops

This kind of account usage is far from abnormal and not very likely to be flagged up as fraudulent. Basically you're using your current account as a savings account. There's no rule against that.

jonesMUFCforever

Somebody mentioned that the bank would not know if the OP was unemployed unless he informed them - the benefits hitting his account every fortnight might give them a clue.

Samsung_Note2

I wouldn't worry OP wife had an account that was like a story out of the Bible..The LORD kept the promise that his prophet Elijah had made, and she did not run out of flour or oil and nor did this account.

It kept filling up with money...we took it and it would reappear...we would take it out and blow me it would reappear.

All ended in tears obviously...but was certainly a gift from the Lord or maybe Aviva but either way you"ll be fine.