SAAFE forum
General Category => Questions and Answers => Topic started by: Miss Dee on 08 December 2019, 05:05:50 pm
-
Hi all I'm in deep shit and I hope someone on here can help me. I had a booking with a client on Friday and since he had no feedback and it was an outcall I asked for a £50 deposit which he sent and then when I got there for the booking he sent the remaining of the fee. (This was all bank transfer). I received the money alright but about 5 minutes after I received a message from my bank that my account has been restricted because in both transactions my real name was not used. ( he used my working name) the bank is asking me to tell them my relationship to him, the reason for the payment and why the payment received was not in my name. They have also asked to send in any supporting evidence. What shall I do? The money was sent into my personal account.
-
Hello, if you haven't heard yet, banks are getting onto self employed people currently (there was a post about this on twitter). They are asking you to have business account, because we cannot use anymore personal accounts for any purposes.
I do not know what to offer to you in this case, but perhaps talk with bank if they need you to open business account?
Also not very wise to send money with your work name, banks can google it. If you wish to not give your real or work name, try initials of any of your name.
-
Thank you very much. I have spoken to the bank about opening a business bank account but they still asking for evidence of this transaction.
-
Can I ask why he used your work name?
The fake name may arouse their curiosity to see if the transaction is a careless mistake.
I think it's wise of the bank to check these details in case people make errors.
The bank many not be checking for any dark, malicious reason.
Since 2018 banks may be tougher checking real names to avoid people mistakenly paying into scammy accounts set up by crims
'if the customer enters the wrong name for the account holder, they will be told the details do not match and advised to contact the person or organisation they are trying to pay.' Grundian 2018
Not sure how you get the money back...you sold him items, second hand stuff eg household goods, clothes, phones?
Don't people still sell stuff casually without documentation, contracts or exchanging everyone's personal details- pick up and collect at home?
How do you mean your account is restricted? Just concerning these two transaction or in other ways?
-
I didn't give him my real name. He used my working bane which is Sasha. My account is restricted as in I can't use it at the moment.
-
Have you got another one to use while you sort this out?
-
Hello, if you haven't heard yet, banks are getting onto self employed people currently (there was a post about this on twitter). They are asking you to have business account, because we cannot use anymore personal accounts for any purposes.
I doubt it's anything to do with using a private account for business transactions. Two transfers into a private bank account would mean a massive leap to assume a private bank account is being used as a self-employed business account. By the way this wouldn't be illegal just a breach of the banks T&Cs which means the bank could close your account down but they would probably fall over themselves to set up a business account and rake in the fees.
If you take regular deposits it may be worth shopping around to find a bank offering an account with a 6 or 12 months fee free period and set this account up in a business name which you could give to clients. Ie. you would have a bank account in the name of Josephine Blogs Trading as Luscious Louise, you would then tell the client to transfer the money to the account details of Luscious Louise.
Your bank has probably restricted your account due to the "confirmation for payee" regime that banks have been pushed into putting into place during this year due to the amount of bank transfer fraud. See which explains about it all: https://www.theguardian.com/money/2018/oct/18/banks-to-check-account-names-to-beat-transfer
Only a suggestion that you might be just as well popping into your branch and speaking to an adviser and explaining the situation. They may close your personal account for breach of T&Cs or more likely set you up a business account but as there is no fraud involved they shouldn't be interested in holding onto your funds. If they do you could complain to the banking ombudsman but you would have to explain the true situation. Your bank may have to check with the payer that it's not a fraudulent transaction though.
The Money Laundering Regulations and the cost of fraud to the banks is onerous so they are just tightening up their anti-fraud procedures which any business would do to abide by the legislation and prevent the massive financial losses they were suffering.
Hope this helps a little.
-
We're mostly self employed on this site, however if you file your taxes under your own company it can get tricky, but if you file as a sole trader there's no need for a business account. This is an Excerpt taken from the HMRC site:
"As a sole trader, you're not legally required to have a business bank account. You can use your personal bank account for all business transactions. This is because as a sole trader, your personal and business income is treated as one and the same by HMRC for tax purposes."
-
I just asked my friend who's a banker, says if you used your work phone and there are unusual queries of this sort the banks may google the number to see what it's related to. They may jump to all kinds of false presumptions not related to your actual situation.. to catch organised crime, money, laundering, trafficking etc
If he was a beloved regular especially if I knew where he lived....I'd contact him all friendly and ask if he'd got a similar text, see if he accepts or rejects the payment and then decide what to say to the bank.
But he's probably a one off new punter? Awkward.
-
I just asked my friend who's a banker, says if you used your work phone and there are unusual queries of this sort the banks may google the number to see what it's related to. They may jump to all kinds of false presumptions not related to your actual situation.. to catch organised crime, money, laundering, trafficking etc
If he was a beloved regular especially if I knew where he lived....I'd contact him and ask if he'd got a similar text, see if he accepts or rejects the payment and then decide what to say to the bank.
Awkward.
I would tell the bank he's your good ol friend and "Mary smith" is an ongoing joke/nickname you guys have hence the reason he paid you under that name. Before doing this contact your client, let him know the story and have your client corroborate the story with the bank. I just hope you don't have other transactions from diferent clients with the same "nick name" as the excuse won;t work. Use paypal in the future?
-
We're mostly self employed on this site, however if you file your taxes under your own company it can get tricky, but if you file as a sole trader there's no need for a business account. This is an Excerpt taken from the HMRC site:
"As a sole trader, you're not legally required to have a business bank account. You can use your personal bank account for all business transactions. This is because as a sole trader, your personal and business income is treated as one and the same by HMRC for tax purposes."
It's totally irrelevant what HMRC states as to where you bank. It's the banks own T&Cs which encompass their fraud policy that creates the issue here of the bank account being restricted. HMRC do not dictate to the bank what their T&Cs must be.
Just as a side note it's a very bad idea to have your personal and business income going through the same bank account, any experienced accountant will explain why.
Outside the scope of the question originally asked but just to clarify the statement that "your personal and business income is treated as one and the same by HMRC for tax purposes" is simply misleading. Different categories of personal income are treated differently for tax purposes, eg investment income, withdrawals from qualifying bonds, income from sales of shares, sale of property, personal loans, maintenance, self-employed income, employment income, state benefits, rental income, gifts, grants received, trust income to name a few are all treated differently for tax purposes. Most are declared on your self-assessment tax return but not all. A professional adviser can help on this.
-
I think it's pretty clear that 'income' in this context should be taken to mean 'earnings'.
I'd be inclined to stop pissing about and tell the bank the truth; you have somebody who you need to send you some money (selling something is fine) but you don't want to give him your full legal name. And see about opening another bank account somewhere else, plus finding a different method of taking deposits - there are many posts here about it :)
PayPal is categorically a bad idea, in every possible way.
Just as a side note it's a very bad idea to have your personal and business income going through the same bank account, any experienced accountant will explain why.
My extremely experienced and very well-thought-of accountant (when I had one) never said anything of the kind. I opened a second/separate account for work partly because there were no convenient branches of my bank where I was working, and mostly because it made doing my bookkeeping a hell of a lot easier.
-
We're mostly self employed on this site, however if you file your taxes under your own company it can get tricky, but if you file as a sole trader there's no need for a business account. This is an Excerpt taken from the HMRC site:
"As a sole trader, you're not legally required to have a business bank account. You can use your personal bank account for all business transactions. This is because as a sole trader, your personal and business income is treated as one and the same by HMRC for tax purposes."
Well, myself and 4 of my sw friends I know has been called recently (we are using different banks) and they told us that it's not possible to put cash in personal account anymore. They said we have 4 weeks to get business account or else they will shut our accounts. Also some people from the people I know even had business account and they still had been called because new laws are coming.
That was just over a month ago, so I think it's possible laws have changed.
And also yes, HMRC can tell you one thing, but banks have their own rules. And when you open business account they ask you if you are sole trader or limited company, etc.
I now wonder if I would have quoted this for my bank.
-
Thank you all for your advise. I have spoken to the bank and told them the truth and I'm just waiting to see what they say but it should be sorted.
-
Thank you all for your advise. I have spoken to the bank and told them the truth and I'm just waiting to see what they say but it should be sorted.
I think this is the best way forward.
The banks I use for deposits including my own cash deposits (earnings) are in the know, I think it's things out of the ordinary - outside of a pattern which they look out for.
-
My bank nagged at me to open a business account then when I applied they declined me. :FF
I now split my earnings in to a few different banks.
-
Yep getting a business account for any adult related business without lieing about what the business is is a pain. But banks dont seem to want to give out accounts to those type of businesses. I tried at the start of the year to get a business account for company I'm involved with and just because it was an adult company I could not get one.
-
My bank nagged at me to open a business account then when I applied they declined me. :FF
I now split my earnings in to a few different banks.
That sounds reasonable... however, if banks are not allowing cash deposits into personal accounts anymore (as someone said here), having several accounts in different banks is not solving the problem (unless of course one of those accounts is a business on where cash deposits are allowed). In my case I file taxes religiously as a sole trader and have only one account (personal), I've been depositing my earning the last day of each month for years (religiously). Last time I did this I was thoroughly interrogated by the teller as to were my cash deposit came from. I thought it was weird (they've never asked me anything all these years), so I'm thinking in opeing a business account with another bank. I believe this might be a good option (?).
-
That sounds reasonable... however, if banks are not allowing cash deposits into personal accounts anymore (as someone said here), having several accounts in different banks is not solving the problem (unless of course one of those accounts is a business on where cash deposits are allowed). In my case I file taxes as a sole trader (no company) and have one account (personal), I've been depositing my earning the last day day of each month for years religiously. Last time I did this I was thoroughly interrogated as to were my cash deposit came from. I thought it was weird (they've never asked me anything all these years), so I'm thinking in opeing a business account with another bank.
If you only pay in once a month I'm guessing it could be a large amount, which may then be more likely to be questioned?
Cash deposits by account holders are fine, it's cash deposits by third parties which was stopped earlier this year.
Has to be the account holder, have you thought about using ATM pay in - a few banks offer this, and or the post office? Many banks can be paid into at the post office.
-
If you only pay in once a month I'm guessing it could be a large amount, which may then be more likely to be questioned?
I always deposit the same amount at the end of the month, usually around 2,000 GBP. I don;t think that's a large amount? (but maybe I'm wrong). I declare all my money religiously to HMRC as a sole trader. i have no company.
-
Has to be the account holder, have you thought about using ATM pay in - a few banks offer this, and or the post office? Many banks can be paid into at the post office.
I do deposit the cash myself into my own account, why would I need ATM or go to the post office? (sorry just askin ;)
-
I do deposit the cash myself into my own account, why would I need ATM or go to the post office? (sorry just askin ;)
It’s an option.
-
It’s an option.
What do I have to gain by using that option? (versus doing the cash deposits myself into my account at the bank).
-
I do deposit the cash myself into my own account, why would I need ATM or go to the post office? (sorry just askin ;)
You were wanting to avoid being questioned or advised into a business account? ATM pay in doesn't involve bank staff, there are automatic paying in machines inside branches, as well as the ones outside which if they are working are accessible 24 hours a day.
Post Office aren't interested in your account just taking the cash and doing the transaction, quite a few businesses use the PO. I have to because most bank branches have closed locally some shop based POs have longer hours than actual branches. Basically they are doing their job whereas bank staff are often trained to sell other products.
-
You were wanting to avoid being questioned or advised into a business account? ATM pay in doesn't involve bank staff, there are automatic paying in machines inside branches, as well as the ones outside which if they are working are accessible 24 hours a day.
Post Office aren't interested in your account just taking the cash and doing the transaction, quite a few businesses use the PO. I have to because most bank branches have closed locally some shop based POs have longer hours than actual branches. Basically they are doing their job whereas bank staff are often trained to sell other products.
All clear. Thanks for the answer Mirror.
-
Oh well... if HMRC has no problem with me as a sole trader doing everything through my personal account BUT my bank has... me thinks banks just want to encourage you into a business account, so they can charge more. It all comes down to that most probably.
-
..
-
Hi , was this sorted out?