Uncle Pokey

Interesting Times Ahead - Tax Compliance -And More!

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I've recently learned that the CEO's etc. of all the banks in the UK have received a letter from the Government  asking questions such as:

 

How does your bank deal with cases of suspected tax evasion?

What do you do to satisfy yourself that your bank doesn't assist customers to evade tax?

Have you found any cases of suspected tax evasion?

Please (now) give details of any disclosures made and to whom.

 

Us punters always have suspected that compliance with tax law is sometimes not amongst the matters engaging upper parts of the minds of some of the ladies of the night.  But that is something we as punters can't control nor influence.

But let us have a look at the potential dialogue between Jason (a cashier in a branch of HSBC in Milton Keynes when in comes 'Millie' with a shedload of £20s and a few £50s. to pay in to her account there) and Millie herself.

 

Jason: Hi Millie - I hope you're well.

Millie: Hi Jason

Jason: Goodness you've a lot of cash coming in today.

Millie: yes, It's been a busy week.

Jason: You know we've to report illegality if we see it.

Millie: fine so what illegality are you seeing?

Jason: well aren't you a Prostitute?

Millie: Well Jason, since you ask, yes I am a whore but that isn't illegal truly so what crime are you suspicious of?

Jason: Well my training manual tells me that most prostitutes don't pay taxes so I suspect you may not pay tax on your income so I may have to report you.

 

At which point Millie may be able to 'satisfy' young Jason by production of a document of some kind from HMRC.

But there are issues for WGs here and steps to be taken to avoid grief.

 

Best regards

 

Uncle Pokey

 

 

 

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I've recently learned that the CEO's etc. of all the banks in the UK have received a letter from the Government  asking questions such as:

 

How does your bank deal with cases of suspected tax evasion?

What do you do to satisfy yourself that your bank doesn't assist customers to evade tax?

Have you found any cases of suspected tax evasion?

Please (now) give details of any disclosures made and to whom.

 

Us punters always have suspected that compliance with tax law is sometimes not amongst the matters engaging upper parts of the minds of some of the ladies of the night.  But that is something we as punters can't control nor influence.

But let us have a look at the potential dialogue between Jason (a cashier in a branch of HSBC in Milton Keynes when in comes 'Millie' with a shedload of £20s and a few £50s. to pay in to her account there) and Millie herself.

 

Jason: Hi Millie - I hope you're well.

Millie: Hi Jason

Jason: Goodness you've a lot of cash coming in today.

Millie: yes, It's been a busy week.

Jason: You know we've to report illegality if we see it.

Millie: fine so what illegality are you seeing?

Jason: well aren't you a Prostitute?

Millie: Well Jason, since you ask, yes I am a whore but that isn't illegal truly so what crime are you suspicious of?

Jason: Well my training manual tells me that most prostitutes don't pay taxes so I suspect you may not pay tax on your income so I may have to report you.

 

At which point Millie may be able to 'satisfy' young Jason by production of a document of some kind from HMRC.

But there are issues for WGs here and steps to be taken to avoid grief.

 

Best regards

 

Uncle Pokey

or she could stick the cash into one of those paying in envelopes and use the cash machine to pay it in.  then she doesnt have to ask dumb questions from the tellers.

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The bank I pay into can clearly see payments going out on a regular basis to HMRC - I have a standing order set up, and have had that in place for years.

Edited by Strawberry

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The banks have been much more on the lookout for a long time due to tighter money laundering rules and they do not like large amounts of cash paid in generally. They try more and more to stop you paying bills by cash etc, something I have noticed lately. I always used to go to the counter to pay some bills but have recently been advised more frequently to pay the cash into my account and then pay the bills electronically. 

 

What you are writing about is probably relating to this:

 

http://www.telegraph.co.uk/finance/budget/11483424/Banks-to-face-criminal-charges-for-allowing-tax-evasion.html

 

And like Strawberry, my bank also sees my half yearly contribution to the HMRC. 

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Banks already have to report cash sums of a certain amount being deposited, I can't remember the exact figure it might be £8,000 but as for smaller sums even if deposited regularly I can't see the Bank being overly interested, although we use cash less there are still plenty of businesses who do and they will always have to cash up at the Bank sooner or later so I doubt they will start giving customers the third degree just yet. I think the Banks are under most pressure over their active roles in helping Companies and very wealthy individuals avoid tax this assistance goes much further than just providing them with an account.

 

What's Millie like anyway, have you seen her.

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I though money laundering rules kicked in at £1000 for some cash payments to businesses at least so maybe banks.

 

Always play straight with HMRC, you don't want to be on the wrong side of them, I know.

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I though money laundering rules kicked in at £1000 for some cash payments to businesses at least so maybe banks.

 

Always play straight with HMRC, you don't want to be on the wrong side of them, I know.

 

Is it really that low, do Banks have to report this or is it left to their descression based on any suspicions they may have.

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I get my income paid into my bank sand largely use plastic to pay for stuff. Its easy that way and it works for me.

But an escort with socks full of cash would work differently. If I were her I would pay for stuff with cash so a lot of her income would never see the bank.

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Is it really that low, do Banks have to report this or is it left to their descression based on any suspicions they may have.

I'll have to check but I'm sure I read somewhere that businesses that regularly take cash payments of more than £1000 have to register that fact with HMRC.  I don't know if that applies to banks as obviously they all fit into that category.

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Is it really that low, do Banks have to report this or is it left to their descression based on any suspicions they may have.

 

I think it's lower, sadly! There are THE Money Laundering Regulations which are publicly available on line as Statutory Instruments, and then every profession produces internal "guidance" which isn't published, but usually tightens things up, so that if there is the slightest possibility that the client / customer is dodgy it is safer either to whisper to HMRC or the Polis, or to ask the Client to take his business elsewhere!

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The simplest way to pay in large amounts of used notes is to visit a bank the day after a nearby horse racing meeting. A good day at the races cannot be queried (but happens all too rarely for me!)

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The simplest way to pay in large amounts of used notes is to visit a bank the day after a nearby horse racing meeting. A good day at the races cannot be queried (but happens all too rarely for me!)

It bloody can!  Many moons ago I was investigated by the Revenue.  For some stupid reason I had paid  a large cash winning into my personal account and they just point blank refused to believe me.  They are a law unto themselves and in these situations the onus of proof seems to be on you.  I felt right stitched up and it still rankles today. 

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I've recently learned that the CEO's etc. of all the banks in the UK have received a letter from the Government  asking questions such as:

 

How does your bank deal with cases of suspected tax evasion?

What do you do to satisfy yourself that your bank doesn't assist customers to evade tax?

Have you found any cases of suspected tax evasion?

Please (now) give details of any disclosures made and to whom.

 

Us punters always have suspected that compliance with tax law is sometimes not amongst the matters engaging upper parts of the minds of some of the ladies of the night.  But that is something we as punters can't control nor influence.

But let us have a look at the potential dialogue between Jason (a cashier in a branch of HSBC in Milton Keynes when in comes 'Millie' with a shedload of £20s and a few £50s. to pay in to her account there) and Millie herself.

 

Jason: Hi Millie - I hope you're well.

Millie: Hi Jason

Jason: Goodness you've a lot of cash coming in today.

Millie: yes, It's been a busy week.

Jason: You know we've to report illegality if we see it.

Millie: fine so what illegality are you seeing?

Jason: well aren't you a Prostitute?

Millie: Well Jason, since you ask, yes I am a whore but that isn't illegal truly so what crime are you suspicious of?

Jason: Well my training manual tells me that most prostitutes don't pay taxes so I suspect you may not pay tax on your income so I may have to report you.

 

At which point Millie may be able to 'satisfy' young Jason by production of a document of some kind from HMRC.

But there are issues for WGs here and steps to be taken to avoid grief.

 

Best regards

 

Uncle Pokey

 

 

 

and therein lies the main problem.

 

'The Computer says no' 

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It bloody can!  Many moons ago I was investigated by the Revenue.  For some stupid reason I had paid  a large cash winning into my personal account and they just point blank refused to believe me.  They are a law unto themselves and in these situations the onus of proof seems to be on you.  I felt right stitched up and it still rankles today. 

 

Yup, I had a client who was investigated and they wanted to know where a cash deposit of £500 came from. He told them he won it on the races and they said which horse, which race.. Had all the results there! 

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Yup, I had a client who was investigated and they wanted to know where a cash deposit of £500 came from. He told them he won it on the races and they said which horse, which race.. Had all the results there! 

I had the horse and the race, a good win is hardly going to be forgotten.  Their attitude was that I'd done my research.  It was at the local track,  of course I hadn't got the betting slip, I couldn't even be positive as to which bookie.  I could see the inspector smirking.

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The simplest way to pay in large amounts of used notes is to visit a bank the day after a nearby horse racing meeting. A good day at the races cannot be queried (but happens all too rarely for me!)

If you do get a win from bookie, tote or betting shop, you should be able to get some sort of ticket evidencing the win, and if it is anonymous, then it is saleable!

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I though money laundering rules kicked in at £1000 for some cash payments to businesses at least so maybe banks.

 

Always play straight with HMRC, you don't want to be on the wrong side of them, I know.

I always thought it was around the £7000 mark as well.I deal in cash a lot and went through a stage of regularly putting a few times that in my account at a time and never got asked anything.One thing i will add is its not just banks.

On a slightly amusing note http://www.thisismoney.co.uk/money/saving/article-2551823/Why-banks-wont-let-pay-cash-account.html

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anyone who does not pay tax etc on what they deposit in the bank is generally a bit of a fool, unless they can account for it in other ways

any tax inspection will look for outgoing living costs - i suspect that most WGs dont pay everything in to their accounts and dont pay tax on at least 30% of their income (just enough to keep the wolf from the door).

Just like any other profession that deals with cash such as window cleaners, shop keeper, market stall traders etc....not that i would expect anyone to freely admit it on a public forum. 

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HD is right. When I had to deal (professionally) with what, in those days, was called Revenue Enquiry Branch their investigations focussed, amongst other things, (for individuals) on 'lifestyle' matters. For example, what kind of motor vehicle was in the garage? A Mercedes or a Hillman Imp!

These days a working girl will be very wise to stay below the registration threshold for VAT - or, if she is beyond that, for goodness sake be very substantially beyond that as VAT can take a sixth of her takings plus huge penalties if they have not, pre-investigation, been declared.

 

I also think HD is pretty much correct to guestimate the degree of partial non-compliance around what he says at 30%.

 

My advice to the WGs is to keep a good diary of your encounters and arrange for your bankings to closely correlate thereto.

 

Uncle Pokey

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Over that last decade or so the HMRC have targeted many different trades and professions.  I wonder whether they have their eyes on sexworkers.  I imagine they could do some estimating of income based on numbers of reviews etc.  Other than that I imagine there isn't much in the way of written records.

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The bank phone me up from time to time re large amounts of money going into my account( nothing to do with this profession) one should just aim to be transparent

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Why is it that people seem to assume we don't pay tax or don't think about it? We are businesswomen who run our own businesses which mostly involves admin and bookkeeping for tax purposes. I know of no escorts who don't pay their tax.

 

I declared myself as self-employed a few months after I started working.

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Why is it that people seem to assume we don't pay tax or don't think about it? We are businesswomen who run our own businesses which mostly involves admin and bookkeeping for tax purposes. I know of no escorts who don't pay their tax.

I declared myself as self-employed a few months after I started working.

I totally agree it annoys me that people assume we don't pay tax.

I also pay tax, this may be considered a hobby for me, but a hobby that pays well and a hobby I am happy to pay tax on! X

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MaldekRub

 

Please don't spam our forum, just wasting your time because it will never be seen.

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