Does HMRC know about multiple bank accounts?
Hello, my boyfriend has been saving cash (around £13000 over the past few years) and says that he will be opening multiple bank accounts to deposit them in. I'm not sure how he will deposit them but I wanted to ask if HMRC would know of this since this is over the personal allowance. I don't know if he's doing anything wrong but where should I stand? I don't want him to get into trouble. Thank you
For context, he only wants to deposit it because of inflation and the cost of living crisis, but tells me that he will still keep 1000 in cash for emergency fund. Not sure if this is okay
Original post by Anonymous
Hello, my boyfriend has been saving cash (around £13000 over the past few years) and says that he will be opening multiple bank accounts to deposit them in. I'm not sure how he will deposit them but I wanted to ask if HMRC would know of this since this is over the personal allowance. I don't know if he's doing anything wrong but where should I stand? I don't want him to get into trouble. Thank you
What personal allowance?
Where is the money coming from and has tax and national insurance already been paid? If he is somehow being paid in cash to avoid tax then HMRC could pick it up at some point and the bank accounts provide an audit trail. I know someone who worked as a nanny for years and was paid cash in hand and avoided banking any of these earnings. My instinct is that getting caught for minor tax fraud is somewhat unlikely, but who knows, and anyway everyone should pay their dues
(edited 1 year ago)
There’s no personal allowance for savings. The only issue would be if he opened multiple ISAs for example, but if they’re savings accounts or current accounts then there’s no issue. If he has opened an ISA, he can only pay into one Cash ISA in the current tax year, though he could open one other type of ISA such as a Stocks and Shares ISA and pay into this too.
(edited 1 year ago)
Original post by Dschingis_1
There’s no personal allowance for savings.
Yes there is. It's £1,000 for 20% rate taxpayers and £500 if you pay 40% tax.
I knew an old lady (she's dead now) who used to keep her money in cereal boxes, suitcases, under her mattress, and all over the place. Thousands and thousands she had, just randomly scattered around her flat.
Sorry that doesn't answer the question at all, it just unlocked a core memory.
Sorry that doesn't answer the question at all, it just unlocked a core memory.
Original post by stifle
Yes there is. It's £1,000 for 20% rate taxpayers and £500 if you pay 40% tax.
That's on interest earned on savings (unless in an ISA for example), not on actually putting money into an account
so for example if you saved £10,000 in one year and had a 5% interest rate you'd get £500 interest. https://www.moneysavingexpert.com/savings/personal-savings-allowance/
But as others have said if he's been paid in cash to avoid tax then he could potentially be found out. If he's paid tax already then that's fine. You do generally have to provide your national insurance number when opening a savings account.
(edited 10 months ago)
Original post by Anonymous
Hello, my boyfriend has been saving cash (around £13000 over the past few years) and says that he will be opening multiple bank accounts to deposit them in. I'm not sure how he will deposit them but I wanted to ask if HMRC would know of this since this is over the personal allowance. I don't know if he's doing anything wrong but where should I stand? I don't want him to get into trouble. Thank you
The bank will request his NI number when opening an account, and will pass the details on to HMRC, because HMRC will track any interest earned against the Personal Allowance for savings interest of £1000 p.a. If he earns money via PAYE then HMRC will adjust his tax code automatically to deduct tax on savings interest if necessary because banks and building societies no longer deduct tax at source, which they used to do
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