Paying cash into my bank and Tax implications.
Discussion
If you'd bought the equipment with the intention of selling it on at a profit, this would be classed as starting trading and you would be taxed on the profits you made.
Otherwise, if you sold the items at a higher price than you bought them for and they were fairly high value items (> £6,000 I think) you could become liable to capital gains tax on the profit you made.
If neither of these situations applied, you won't be taxed on the money you receive.
Otherwise, if you sold the items at a higher price than you bought them for and they were fairly high value items (> £6,000 I think) you could become liable to capital gains tax on the profit you made.
If neither of these situations applied, you won't be taxed on the money you receive.
It's just a load of race car spares I have which would include a couple of race engines so it could be a fair amount of money. It is all private stuff which I have collected over the years and I don't have a business and pay PAYE and tax on my savings so don't want to be lumbered with any more.
It probably wont all go at the same time so the money would go in as and when it sells. I just don't want the bank starting asking questions or notifying Her Maj's tax collectors.
It probably wont all go at the same time so the money would go in as and when it sells. I just don't want the bank starting asking questions or notifying Her Maj's tax collectors.
You are allowed sell "personal moveable chattels" without falling foul of the tax man. There is a Money Laundering threshold over which the bank might need to notify the authorities but I doubt if this would be an issue.
Are we talking tens of thousands here or a few thousand at most?
Are we talking tens of thousands here or a few thousand at most?
Eric Mc said:
Are we talking tens of thousands here or a few thousand at most?
It wold be nice if I see 10-12K but I doubt any more than that.youngsyr said:
Also, will you be selling the parts at a profit and if not, do you have any receipts showing their original purchase price?
No profit, you don't get profits in motor racing, and I doubt I have receipts for everything.The Banks would never contact the HMRC, they are only bothered about cash from a Money Laundering point of view and would only would only contact the authorities if it was regular cash and 'unusual' activity on your account. They are checking into Drug dealing/terrorist activity/laundering money.
The cashiers have a personal responsibility to report any suspicions they have, if it's actual 'cash' you're paying in over the counter and they ask questions just tell them the truth. It's when you act all "it's none of your business" attitude that would prompt them to get suspicious and report it.
Having said all that, if it's a few grand here and there, they won't bat an eyelid.
As for the tax man, if they co-incidentally look into your affairs in the future, they will want to know where the cash came from, so make sure you keep receipts!
The cashiers have a personal responsibility to report any suspicions they have, if it's actual 'cash' you're paying in over the counter and they ask questions just tell them the truth. It's when you act all "it's none of your business" attitude that would prompt them to get suspicious and report it.
Having said all that, if it's a few grand here and there, they won't bat an eyelid.
As for the tax man, if they co-incidentally look into your affairs in the future, they will want to know where the cash came from, so make sure you keep receipts!
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