I am worried about the taxman.

deepti_2

I have opened a regular savings account with halifax for my daughter.
I understand that the monthly payments have to be by standing order.
We all know that children's accounts do not have the facility of setting up a standing order to transfer money out to another bank.
At the moment my daughter's money is in a children's account with Alliance & Leicester.
In order to pay money every month by standing order into my daughter's halifax account, I have to withdraw money from her Alliance & Leicester account and pay it into my own account. And then the standing order can go out of my account into her Halifax account.
But this will show as if the money is from me, as it is going out of my account. I am worried about the taxman.
Basically, its my daughter's money that is coming out of one of her accounts and going into another one of her account, via my account.
Once questioned about the amount given to my daughter over a financial year, how easy will it be to prove that the money was not given by me?
By the way I am already saving a monthly amount into one of my daughter's account by standing order and I know that the interest earned on this account will be almost utilising the yearly allowance before tax is charged.
PLEASE HELP!!!!!!!!!!!!!!!!

Shrimp_Stu

If its the Halifax Regular Saver paying 10% - the most you can pay into this account over the 12 months is £1200 (12x£100 monthly contributions) - which will not incur any charges payable for tax on the sum invested as the interest earned on this account will not take you over the threshold allowed for interest earned on a child savings account ( I think it is over £100?).
So despite the trial of monies from your daughters account through to your account and out of your account into the new savings account - the taxman wont be interested as the interest earned is not above the allowed threshold.

deepti_2

Shrimpers_Joy wrote:

If its the Halifax Regular Saver paying 10% - the most you can pay into this account over the 12 months is £1200 (12x£100 monthly contributions) - which will not incur any charges payable for tax on the sum invested as the interest earned on this account will not take you over the threshold allowed for interest earned on a child savings account ( I think it is over £100?).
So despite the trial of monies from your daughters account through to your account and out of your account into the new savings account - the taxman wont be interested as the interest earned is not above the allowed threshold.

Thanks for your reply. But coz I already pay money into my daughter's another account,(and the interest in it will be about £100.00) the above won't apply.
So, I only want to transfer her money between her own accounts. There has to be a straightforward way to do it.