2007-06-11 02:37:37 · 2 answers · asked by true f 1 in Business & Finance ➔ Taxes ➔ United Kingdom
Is you friend in business in the UK? If he is, then he shouldn't be conducting this transaction without documentary evidence that this is not a transaction within the course of his trade or profession. If he is subject to an enquiry by HMRC or his business is, it is likely that HMRC will want to see his personal bank statements. HMRC take the view that any transactions that pass through a persons bank account that are not explained with documentary evidence are trade receipts and he may be charged tax on it.
Ensure that you provide him with a copy of the transfer slip from your account to his and give him the name and address of the person or company receiving the funds. Also provide him with documentation of the transaction between yourself and the end receipient.
2007-06-11 04:00:19 · answer #1 · answered by notmarriednochildren 4 · 0⤊ 0⤋
If you mean a 'one off' transfer of up to a few thousand UK £, you should be OK....
But it's multiple transfers of 10,000's of £, Tax is the least of his worries ... the Bank will inform UK Government & next thing armed police will be knocking on his door and asked if he is funding Terrorism ..
2007-06-11 02:58:45 · answer #2 · answered by Steve B 7 · 0⤊ 0⤋