hidding money from the tax man ?

[smirnoff_rules]

a friend of mine has money hidden away and wants to put it somewhere safe .. he has a safe but dosnt think its safe ie if anyone breaks in and holds a knife to his wifes throat he might have to tell them the code .. after she loses an ear that is ,

its over ?10000 and he has a company so dosnt want it to show ,

he was going to give to the father in law and then get him to give him a cheque and say that into the bank as a gift, but his not sure if it will be recorded ?

[DogdySnigwirter]

Pretty sure you could be liable to 'gift' tax that way ...

A trip to vegas and back with winnings

[Devilfish]

Open a share dealing account in his wifes name and buy some solid shares. Use her ISA allocation and it will be tax free.

[stuckylad]

if he has company i would think his accountant could point him in the right direction

[GastonJ]

No there's no tax on gifts. However there is a 7 year rule, which means if his father died within 7 years f giving him the money he'd have to pay inheritance tax on it.

Best way I find of hiding it is to cancel all the DD's and pay every bill by cash until it's gone, shuffling the same money from my current account into a savings account that I woul dhave spent payng that bill. That way no-one notices really, bills all get paid and my cash is in the bank, i just look slike I haven't paid anything.

Wasn't me Mr Taxman...

[smirnoff_rules]

No there's no tax on gifts. However there is a 7 year rule, which means if his father died within 7 years f giving him the money he'd have to pay inheritance tax on it.

Best way I find of hiding it is to cancel all the DD's and pay every bill by cash until it's gone, shuffling the same money from my current account into a savings account that I woul dhave spent payng that bill. That way no-one notices really, bills all get paid and my cash is in the bank, i just look slike I haven't paid anything.

Wasn't me Mr Taxman...

wouldnt the tax man see this if they checked ,, ie no dd and cash movin into different account ?

[Curious123]

Most people I know with businesses tend pay cash whenever possible rather then save the cash so they can show minimum amounts in their bank accounts.

[smirnoff_rules]

he does pay for most of this stuff in cash as he cant be arsed to go the bank but this is cash cash m8 .., if u know wot l mean .. no bills no invoices back pocket

[Meat-Head]

Is he a bank robber or something.

What about (this has been done before ):-

Open up 10 bank accounts with differant banks

Start each with $1000

Then set up 10 direct bedbits - bebits - whatever $300 pays from account 1 into 2 pays 3 - 3 pays four.

Leave these festering for 2 years.

Then got to each bank, can i have a credit card and a LARGE morgate, please.

Bank go, oh you have $300 a month coming in for last two years - must be your wages then, here is a large morgate - you have our money - now ~~~~ off.

Then go to the other 9 banks, do the same and do a runner.


Oh sorry, you wanting rid of money, not gaining it - can it be donated to a cat?

[GastonJ]

wouldnt the tax man see this if they checked ,, ie no dd and cash movin into different account ?

he's never noticed me doing it. They'd only notice if the bank suspected anything and questioned it anyway. I tend not to leave it to mount up to that much, but as I said I pay cash and leave the money in my current account form my wages, saves the hassle of trying to hide anything. It's why I never pay everything by DD.

[chucklor]

I think you can open up various accounts which are ghosted from the tax man, the Isle of Man springs to attention, also check up with offshore investments and I think the Allied Irish do investments where they tell the tax man where to get off when he comes sniffing...

[smirnoff_rules]

as the guy is self employed the tax or vat man can check him out any time and l think paying all his bills by cash might stand out ?

[opsmonkey]

Gifts are linked to Inheritance Tax.

If your estate is worth more than the Inheritance Tax threshold (?325,000) there are exemptions that allow you to make gifts to others and not have to worry about future inheritance tax liability

You can make small gifts up to the value of ?250 to as many people as you like in any one tax year. However, you cant give a larger sum and claim exemption for the first ?250.

You cant use your small gifts allowance together with any other exemption when giving to the same person.

Has he not got a son or daughter who is about to / just got married..?

As parents can each give cash or gifts worth ?5,000

However:

You can make gifts to certain people and organisations without having to pay any Inheritance Tax. These gifts are exempt whether you make them during your lifetime or as part of your will.

You can make exempt gifts to:

* your husband, wife or civil partner, as long as they have a permanent home in the UK
* a 'qualifying' charity established in the EU or another specified country (find out more in the link below)
* some national institutions such as museums, universities and the National Trust
* any UK political party that has at least two members elected to the House of Commons or has one elected member but the party received at least 150,000 votes

I'd just open a bank account under his wife's name and 'gift' her ?10k then spend it

[smirnoff_rules]

His wife has an empty ISA acount ? Can he use that if she is not tied to the company ? His not sure if there's a max amount he can put in there and she might ~~~~ off


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[Grizz]

Put 9000 behind a brick in the attic. Put a 1000 in the safe, enough for a knife wielding crook to think he had a great night on the offchance(wont happen though mate, but if it does tell him please give in before the ear)