Large Deposits

[yansee]

Having a discussion about depositing money in a bank and someone said the bank informs HMRC of any deposits over £10k,is this correct ?

[fiction-factory]

I've never heard that and can't understand it. The bank may well ask questions about the source of the money to comply with money laundering check requirements. The bank will notify HMRC of interest but unless you have around £50000 and earn around 2% interest you are unlikely to exceed the tax threshold for interest. Is there a reason why you would prefer that HMRC are not notified?

[hc4361]

The bank doesn't need to inform the HMRC - they already have access to this information:

"This powerful system links taxpayers to more than one billion pieces of information held in the system which is fed from 28 data sources from organisations such as Companies House, the Land Registry, Benefits Agency, onshore and offshore banks to name but a few.
It then compares that data with the taxpayer’s self-assessment return or flags up that a return has not been received when one would seem appropriate....."
https://www.taxation.co.uk/Articles/2014/09/02/330221/well-connected

http://www.telegraph.co.uk/finance/personalfinance/tax/11697816/What-does-the-taxman-know-about-you-your-finances-and-your-lifestyle.html

[yansee]

I`m on disability benefit and worry if i pay in £10k the government will stop it

[fiction-factory]

That's a slightly different question then. If your benefits are means tested you are required to notify them of any changes like this that could be material. I know that DWPdo obtain usch info but I'm afraid I'm not sure whether it comes from HMRC or whether DWP are entitled to obtain the info from banks

[New Judge]

Disability benefits are not means-tested, yansee.

[fiction-factory]

Yes, DLA is not means tested. I think ESA is means tested though. Are you on just DLA?

[yansee]

Yes on ESA so i think the bank would inform DWP if over 10k unless i`ve been told wrong info

[fiction-factory]

If in doubt you should advise the DWP yansee- if your benefit is not means tested they will put your mind at rest, if it is means tested you are under an obligation to tell them of significant changes if it takes you past a threshold. You may want to check with CAB too to check whether your are on the right benefit and you could check with DWP whether you are entitled to DLA

[wolf63]

My ESA isn't means tested (contributory ESA) they whack off a sum of money due to me having an Occupational Pension. It is worth asking the DWP yansee - they are usually very pleasant and helpful. It will put your mind at rest.

[Mamyalynne]

//Capital
You cannot get income-related ESA if your (or your partner’s) capital or savings are above an upper limit of £16,000. There is also a lower limit, normally set at £6,000. If your capital is between the lower and upper limits, a ‘tariff income’ is assumed: £1 a week for every £250 (or part of £250) above the lower limit is included as your income in the income-related ESA calculation.//

https://www.disabilityrightsuk.org/employment-and-support-allowance-overview

[Mamyalynne]

Totally agree that speaking to someone is the best way to find the facts in your particular case.

[yansee]

Thank you all very much for your help

[Peter Pedant]

erm everyone thinks the man at the ministry sticking his piggy nose into other tax payers business is new
It isnt - the first duty to report is in the Banking act 1926 - deposits earning interest over £5 a year I think

the new ones include the money laundering regs and they are here
there is a bit about transfers below £15k

https://www.gov.uk/guidance/money-laundering-regulations-risk-assessments

altho I have transferred sums up to £150k ( house in London of course)
I have never had a clerk ask " where dat come from den ? "

[SFG2302]

I am going to have 50k deposited into my current account from a friend abroad as a short term loan. I am disabled on benefits. Will the bank be obligated to inform HMRC?