Banks reporting to Inland Revenue

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Thanks. That covers reporting "suspicious transactions" to the NCIS, but I'm having difficulty establishing for certain if banks automatically report deposits/balances held above a certain amount to the IR, and what this figure is. Finding specific info on this is proving difficult.

I am not sure if there is a fixed level but I noticed that my local Ford dealer will no longer accept cash amounts of 5,000 or more so maybe that is the ballpark figure.

As I understand it (but I am not an expert) it is unusual transactions that trigger the alarm. i.e. someone on a average salary suddenly banking 100K would raise some eyebrows.

That is how my accountant explained it to me.

Cash is different, yes you are correct if you regularly handle large amounts of cash i.e. car sales, real estate etc. Normal business does not need a license to accept one or two cash payments but you certainly need to be able to identify the customer who gives you the cash with say passport copy etc.

Basically Blair and Brown do not want us ordinary people using cash as it makes us independent and they cannot tax it as easily. (Allright they used the excuse of terrorism to push the latest laws through)

As a business you are asking for inspections from the IR or others if you suddenly start putting thousands of pounds in cash in your bank accounts.

Mind you I was always under the assumption that people who took cash did not put it in to banks as it then left a trail.

Andy

I am not aware that a builder has an obligation to verify his customer's identity if accepting cash. A bank might have, but not a builder.

Today, the average moderately incompetent builder/plumber/etc is so busy and has so many people ramming cash down his throat, that he will often give a "cash price" which in reality includes VAT and is written up in his books, and the cash is then banked. But the customer feels that he's got a special deal, having paid cash.

A bank is in no position to refuse a cash deposit from a known client.

True

But they are in a position to report it to their Money Laundering Reporting Officer (MLRO) if it appears to be inconsistent with their account and/or normal business activities.

The MLRO will liase with the NCIS, and potentially the IR. Further, if an investigation is undertaken, they will cooperate fully.

M Collie

The average SE person who 'deals' in cash knows full well to be completely honest with the money that he pays into his bank account and this rule will make no difference to this whatsoever. It is the cash that (sometimes) doesn't go into his bank account that is the problem.

tim