Need to provide bank statements for UC review, but elderly relatives use my accounts as well.

tacpot12

Setting up Power of Attorneys would allow you to manage their bank accounts for them, but them having their own bank accounts is a good first step. 

If the amount of income that you Aunt is receiving is less than the personal allowance in the years when she earned money, she won't owe any tax, but she would be required to register as a Sole Trader (unless the switchboard were paying her wages after income tax and NI). 

She can try to register as a Sole Trader now. This will be a good idea if she wants to continue to do this work. She might be asked to submit a Self-Assessment tax return for the years she missed, but there might also be a fine for not doing so even if no tax was due. I would try to talk to HMRC either via telephone or you can sign up for the HMRC Community Forums and ask questions about what she should do. Many people don't know about the need to register as a Sole Trader, so  Iexpect HMRC will be more relaxed about it. Once all her tax affairs are in order, it becomes easier to defend the situation with the DWP.  You can always ask for a Mandatory Reconsideration and provide details that show she is now registered for tax and that she now has her own bank account for future payments. 

Spoonie_Turtle

Just picking up on the £1,000 someone mentioned - that is ONLY if she's self-employed, she should be registered with HMRC if her income from it is £1,000 or more.  If she's employed, then it doesn't matter. 

And you're correct that the tax threshold is c.£12,500 - which does include her pension (per the reference to her being an OAP) as already mentioned by a previous poster - but again if she's employed that shouldn't be a problem.  And indeed if there is a tax problem it is hers to deal with not yours.  Your main problem here is them all using your bank account.

As a previous poster says, what would they do if anything were to happen to you, not just death but if you were incapacitated?  That could be a way to get them to see reason.

Robbie64

My advice would be to help them all open bank accounts now, especially the aunt with the income from employment. They all may hate banks but they've put you in an awkward position (again, especially your aunt, it's not too bad if it's benefit payments going to other family members).

Out of interest, why has UC asked to see your bank statements? Is it a routine check or have UC picked up on something?

pvhc47

As far as I’m aware it’s a random check. They want to see four months worth of statements.

born_again

pvhc47 said:

As far as I’m aware it’s a random check. They want to see four months worth of statements.

They are not random. They are starting to check all UC accounts annually to ensure everyone is compliant.

As others no matter what they need their own bank accounts.
If they won't then you need to tell them that you can no longer let them pay into your account.

Worst case how would they cope if something happened to you 🤷‍♀️

saajan_12

pvhc47 said:

...
 My mother, grandmother and great aunt get their benefits/pensions and wages (in my aunt’s case) paid into my account. 

My family HATE banks. They prefer to do everything in cash. 

They can hate it all they like, they evidently *need* bank accounts to go about their daily business and receive money. If they're going to have money going through *a* bank account, then it may as well be in their name. If you hate banks and find a job that pays cash in hand (with tax declared of course), plus shops to pay for food in cash, plus coin operated utilities, etc, then more power to you. If not, then don't inconvenience anyone else and get a bank acc. 

Even if principle you're allowed to have other peoples money into your account for UC, there's still the question of whether they believe its other peoples money. Any extra legwork in answering their questions, or any pause in UC until they are convinced about your income position is all thanks to the family members (and you enabling them). 

KxMx

born_again said:

pvhc47 said:

As far as I’m aware it’s a random check. They want to see four months worth of statements.

They are not random. They are starting to check all UC accounts annually to ensure everyone is compliant.

As others no matter what they need their own bank accounts.
If they won't then you need to tell them that you can no longer let them pay into your account.

Worst case how would they cope if something happened to you 🤷‍♀️

I know they are reviewing several million claims, but I have not read they will be annually for all- do you have a link?

I was checked September 2023 and not since (as yet). 

born_again

No link, but we had one last year & again this year.

Fluffy_dude

You can include a note with bank statements explaining that your elderly relatives also use your accounts. This will help clarify any discrepancies during the review.

Fluffy_dude

it may help