What are the chances of the UK Banking Algorithms flagging this persons account for receiving a 45-50k sum into his current account? This person has invested 17k which was paid into a business account through several transactions over the course of a month. The investment has netted him 50k (33k profit).
1) Would bank flag it if he only receives his initial payment (17k) back? 2) is the 10k threshold a meme? Surely there's millions of 10k plus transactions daily 3) would it be smarter to receive the 50k spread between several bank accounts? 4) would a banking flag always result in HMRC being notified? 5) what is the option for this person to receive this money back? 6) any other information/knowledge biz?
If anyone with the right credentials and can answer - thankz biz
>1) Would bank flag it if he only receives his initial payment (17k) back? Yes. As long as transactions in this range are not done regularly anyways, you can assume the bank ist somehow flagging the account somehow.
>2) is the 10k threshold a meme? Surely there's millions of 10k plus transactions daily Yes, it is a meme. It depends on your average or median or whatever metric, because otherwise it would hamper everyday business with accounts that acutally deal daily in such amounts.
>3) would it be smarter to receive the 50k spread between several bank accounts? Yes and no. If they are fresh accounts, it would be definitely the case. If these are accounts dealing regularly with these numbers, it would not be relevant for the bank.
>4) would a banking flag always result in HMRC being notified? Most likely, yes.
>5) what is the option for this person to receive this money back? Use a bank account and pay taxes for your profits. Hit your local accountant to lower the amount payable as much as possible.
>6) any other information/knowledge biz? With a couple of tens of thousand in profit, you should allways go the legal way and pay your taxes. Add at least three zeroes, before thinking you can dodge taxes and get away with it.
Grayson Reed
>Add at least three zeroes, before thinking you can dodge taxes and get away with it. I would think that with more money it's even harder??
William Gonzalez
Would regularly cycling large amounts between savings/current accounts help reduce the algorithms from flagging accounts then?
Does the person have until april 21/22 to file taxes then if they decide to go this route? Doesn't that mean they banks wouldn't flag until this time is up to give them a chance of paying taxes?
Why would a larger amount be easier to avoid tax, wouldn't it be harder ?
Levi Thompson
yes, so give a notice to the bank and pay your taxes
Austin Russell
>I would think that with more money it's even harder?? It does not hurt to employ a couple of experts, who shift revenues, profits, expenses etc. around the world to end up with the lowest payable number possible.
You know, people who do this for a living for a couple of decades.
Julian Hughes
>Would regularly cycling large amounts between savings/current accounts help reduce the algorithms from flagging accounts then?
Maybe. Try it and tell us about the results, I dont know the algorithm. But you can expect that the people working on it might run tests on it, to prevent such things from happening. Circling money for no reason at all from bank to bank for no reason might raise a flag, it might let you get away with it.
But you try to play a game some people are watching over for years already. I am not so sure you can get away cheating as a beginner.
Owen Wilson
>Doesn't that mean they banks wouldn't flag until this time is up to give them a chance of paying taxes?
The flag of your account, the notification to local tax authorities and your notification to explain the transactions on your bank account are three different events. And you receiving a request to explain transactions is usually the last step in the whole process, where they already know what you are trying to pull.
Alexander Foster
UK slaves are allowed a "Tax Free Personal Allowance" of £12,500 a year.
This person has already paid £17k out of their account, surely receiving this £17k back should be free from any issues? What would happen if this person explained that this sum was purely a business loan?
With the £12,500 tax free exemption and the inital £17k outlay, one would assume a £50k return is too small and therefore not viable for HMRC to look into, considering that even if they were to investigate it and were to win, the amount they could recover would be nonviable.
Jeremiah Myers
>not viable for HMRC
Feel free to try it then. It is always nice to see someone getting to know the system by trying to play it.
Logan Rodriguez
One assumes you have knowledge and merely presented some variables to predict if HMRC would investigate, given the sums in questions.
So again, would receiving just the initial 17k sum alone be of any issue? From a tax perspective - is there any tax that needs to be paid on this sum?
Caleb Martin
Former banker here. Make a transfer of 17k Send the rest to two separate personal accounts by BACS. Purchase VAT free stored silver.
Elijah King
mate, i sold £90k btc, withdrew it to bank, then changed my mind and bought it back
no one did shit
Daniel Rodriguez
>would receiving just the initial 17k sum alone be of any issue
Most likely. How about you contact someone who does this for a living and pay him for his advice on how to handle the profits?
Jose Garcia
similar question:
if someone made a dex which executed trades partially over time
(e.g. make a trade now, it executes at initial price but only over next 10 years)
all handled by dex onchain, question is would the capital gains be definied as over 10 years or would it just be 1?
Christopher Cox
Why would a BACS payment be better ?
>Purchase VAT free stored silver. Surely this wouldn't benefit the person as the currency coming in may be taxable so purchasing a CGT-exempt asset would be pointless as it has already missed a step?
Corona virus has made this very difficult, if not, impossible.
Joshua Martinez
>Corona virus has made this very difficult, if not, impossible.
As long as you dont replace consulting a professional with Yas Forums, all will be fine, regardless if there is a pandemic or not.
Nathaniel Walker
Would the person be able to benefit by having their parents receive some of this sum and then having that paid into their account?
One assumes payments made from a family members bank account is less likely to encounter issues.
One also presumes that Physical Cash deposits and Overseas Payments are the primary cause of concern and criteria to cause flags which this isn't the case for.
Ryan Morris
^^^^^
Tyler Thomas
Rare interesting thread
Liam Jones
This. £50k is not a lot of money. Obviously just pay your taxes and you have nothing to worry about.
Kayden Edwards
One would assume that, in the UK atleast, filing taxes for this small amount would mean eyes will be on said person who is now expected to file taxes every single year.
Oliver Peterson
You do realize the 'swim' posting has no legal bearing and never has lmao
Jaxon Cooper
I work for a UK based pensions firm and my job revolves around vetting applicants for money laundering, bankruptcy etc and making risk assessments on them. It will make no difference spreading it across multiple bank accounts or leaving a complicated paper trail between your parents' accounts and yours. The System (banks, Experian, HMRC etc) will notice and you will be taxed accordingly. Just don't try and hide it. I should add it's pretty much all computerised, it's not like there is some nerd looking at your details trying to work out where you got the money. A report log will generate saying 'this poor guy has more money now, please allocate him a new tax code' and bingo, your tax code will change on the systems used by administrators at all the banks, financial services companies etc that you use. You can easily hide it by making shit tons of small transactions over several years but dude, just pay the capital gains tax on whatever you've made above the threshold. It's not worth the stress.
Nicholas Lewis
Interesting background.
Why would receiving this sum of money change a persons tax code if they are already earning good money from a salary?
Does this person have until the next tax year to file their report? As we are in the 2020/21 tax year, ending April 2021 which would mean they wouldn't have to send returns until the following January - 2022?
Logan Nguyen
Would receiving just the 17k back be free of any issues? One cannot see how this would cause problems.
Hypothetically if person A sends X amount to person B, receiving back X should be exempt from any tax - correct or not?
