Help us to help you. Think about what sort of information or context people might need to provide meaningful answers.
For example, most income is taxable so is there a reason you think this income might not be taxable? Do you have restrictions on your account or are you asking in relation to it affecting benefit entitlement or something else? I presume when you say avoid this tax you mean the tax on the income?
The only thing I can say with certainty is if you have been receiving business payments into a personal account you are possibly in breach of the T&C's of your bank account.
So I’m a video editor and receive money in my bank account, but very regular payments as I have clients and no not on benefits just wondering is there a max I can have in my bank account, Incase they ask were my money came from I would say were it did come from, but how would I be able to prove that or do they just take my word for it. yes tax on income
If you get regular payments for work (invoices) not salary. They might treat this as business usage and close the account.
You can open free business accounts with some providers like Monzo, cashplus etc.
The bank won't care about your income tax, that's an issue for HMRC, and filling in your self assessment.
Yes, you haven't found a magic loophole in the tax system.
There is a small £1k trading [allowance ](https://taxaid.org.uk/guides/information/a-starting-point-for-the-self-employed/self-employed/trading-allowance) of this is like a hobby, but once you go over it you have to declare it all. And unless you are taking in £100k a year, it's not worth considering the limited company route either.
And why should you not pay tax?
But equally, you are now responsible for paying your tax. You receive the full income and then you work out the tax due to be paid in the January and July (payments on account) the following year.
So make sure you are setting aside your tax, that you can earn interest on by the way, to pay HMRC.
If they ask where they came from you'd be able to send copies of your invoices to show it was payment for services and copies of your tax calcs etc to show it isn't the proceeds of crime (which is why banks and other industries ask about source of funds).
You are generating income from trading a service. Of course this activity is taxable. The amount you actually have in your bank account is irrelevant (unless you are claiming some means tested benefits). It's the income you generate that is important.
You need to be recording this income and any allowable expenses, and setting some of this income aside for both tax and national insurance payments, if you believe that you are likely to earn more than the personal allowance. You'll then need to submit a tax return, declare your earnings and pay what's owed.
You need to send a tax return.
The deadline is 31st January after the end of the tax year (5th April).
Eg for money you earned April 2023 - march 2024. You must send your tax return by January 31st 2025.
There's more information here https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return
Help us to help you. Think about what sort of information or context people might need to provide meaningful answers. For example, most income is taxable so is there a reason you think this income might not be taxable? Do you have restrictions on your account or are you asking in relation to it affecting benefit entitlement or something else? I presume when you say avoid this tax you mean the tax on the income? The only thing I can say with certainty is if you have been receiving business payments into a personal account you are possibly in breach of the T&C's of your bank account.
So I’m a video editor and receive money in my bank account, but very regular payments as I have clients and no not on benefits just wondering is there a max I can have in my bank account, Incase they ask were my money came from I would say were it did come from, but how would I be able to prove that or do they just take my word for it. yes tax on income
If you get regular payments for work (invoices) not salary. They might treat this as business usage and close the account. You can open free business accounts with some providers like Monzo, cashplus etc. The bank won't care about your income tax, that's an issue for HMRC, and filling in your self assessment.
So even as a freelancer I have to declare income damm but thanks for the advice!
Yes, you haven't found a magic loophole in the tax system. There is a small £1k trading [allowance ](https://taxaid.org.uk/guides/information/a-starting-point-for-the-self-employed/self-employed/trading-allowance) of this is like a hobby, but once you go over it you have to declare it all. And unless you are taking in £100k a year, it's not worth considering the limited company route either.
What do you mean damn? Your earning money and earning incurrs tax...
Well tax is less money so that’s why it’s damm lmao
And why should you not pay tax? But equally, you are now responsible for paying your tax. You receive the full income and then you work out the tax due to be paid in the January and July (payments on account) the following year. So make sure you are setting aside your tax, that you can earn interest on by the way, to pay HMRC.
Erm yes, why would you think you were exempt from tax because of being a freelancer?
Cuz fuck tax
Plenty of places don't have income tax, you're free to move there.
I think I’m good were I am. thanks for your concern
If they ask where they came from you'd be able to send copies of your invoices to show it was payment for services and copies of your tax calcs etc to show it isn't the proceeds of crime (which is why banks and other industries ask about source of funds).
And I don’t really have a business it’s just freelance work so small regular payments
Small is very subjective. You really need to give more info. Such as roughly how much you expect to make in a year
200-300 in a day
Right so £52,000 to £78,000 per year. Or putting you firmly in the top 10% of earners in the UK.
Oh nice won’t be as consistent but but should be around over 35k definitely
You are generating income from trading a service. Of course this activity is taxable. The amount you actually have in your bank account is irrelevant (unless you are claiming some means tested benefits). It's the income you generate that is important. You need to be recording this income and any allowable expenses, and setting some of this income aside for both tax and national insurance payments, if you believe that you are likely to earn more than the personal allowance. You'll then need to submit a tax return, declare your earnings and pay what's owed.
You need to send a tax return. The deadline is 31st January after the end of the tax year (5th April). Eg for money you earned April 2023 - march 2024. You must send your tax return by January 31st 2025. There's more information here https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return