Large cash withdrawals from Nationwide...

jonesMUFCforever

castle96 said:

I had no problems withdrawing the cash. He will have no problems (or reasons), spending it. End of, really

What you are unaware of; is the possibility that behind the scenes your bank might be investigating and liaising with HMRC and NCA because of your large withdrawal - just saying.

Ballard

SP87 said:

Don't get me wrong, I understand that they are trying to safeguard, and protect against money laundering and tax evasion (not their job), but ultimately my money is my money and it feels like I'm being held at ransom. It's none of their business what I choose to do with it, and it's even got to the stage where I've said I'll just close the account and have the money all in cash, and again they've said no.   

Unfortunately for banks it is the job of financial institutions to looks out for money laundering. Tax evasion is a form of money laundering. It is also the banks business, to an extent, what you do with your cash.

born_again

Ballard said:

Unfortunately for banks it is the job of financial institutions to looks out for money laundering. Tax evasion is a form of money laundering. It is also the banks business, to an extent, what you do with your cash.

And as it is now part of a banks responsibility to ensure that the tax authorities are informed, if they feel their is even a hint of anything underhand. Then it gets reported. They would rather do it and cover their backs than not.

Banks have now become the unoffical tax man....

MDMD

In fact from September 2017 they are legally required to prevent the facilitation of tax evasion.

https://www.gov.uk/government/publications/corporate-offences-for-failing-to-prevent-criminal-facilitation-of-tax-evasion

AstonSmith

Can I advocate for the Devil and suggest that the builder might be trying to avoid bank charges rather than taxes?

What does it cost a business in fees to receive £10,000 from a bank transfer, buy materials electronically and pay some of it to their employees,

vs.

receive £10,000 in cash, buy materials and pay cash to employees? (The latter is presumably £0, or very close.)

Grumpy_chap

AstonSmith said:

What does it cost a business in fees to receive £10,000 from a bank transfer, buy materials electronically and pay some of it to their employees, 

Pennies.

Ballard

I’m not a builder and don’t know the business but other than tax evasion I can’t think of a legitimate reason to take cash.

I’d have thought that legitimate suppliers would generally prefer card payment as that would avoid having to bank the cash. This would involve a fee but that would partly be offset against the charge to pay cash in and no one is going to bang you on the head and steal it. 

Paying employees cash may suit them but you’d presumably need to calculate deductions so round amounts would be unusual. It’s also unlikely to be expensive to use faster payments from a business account.

colsten

Tax evasion with builders usually works out for both, the builder and the person having the work done.

Say the real cost with tax would be £12,000, of which £2,000 is  the tax the [BR tax payer] builder has to pay. So he offers £11,000 if paid in cash. Builder pockets £1,000 (as well as the profit he'd already calculated in), punter gets the job done for £1,000 less.

If the builder has to pay VAT, and/or employs people for whom he has to pay a pension contribution, the difference would be even starker.

castle96

you're finally getting there. The way of the world

colsten

castle96 said:

you're finally getting there. The way of the world

I have always been there.

That's why I have always said it is illegal.