From UK, Withdrawing a LOT of bitcoin - Advice

[SpecialFish]

Hi,

I am working on a project for a big company, soon I should be getting paid when I get the service up and running correctly. Roughly 25 BTC per week.

If I withdraw this to my bank via Localbitcoins its going to look suspicious. I think.

I dont want to tax dodge, but is opening an offshore account the best thing to do in this situation. I am really stuck, should I just be honest with tax office/bank and say im getting paid in BTC and will have different people depositing to my account.

one of my last bank accounts was closed down because I used Bitcoin generally.

Thanks for any help.

PS: Mods, if this is in the wrong section feel free to move, sorry.

[Capradina]

I think it wouldn't be a problem, if you do a withdrawal to your bank account by the amount of the standard. Because usually all banks do a selection from those who have income above standard with work that they tekuni.

[Slark]

Roughly 25 BTC per week.

Wow, you must be really big fish if your salary is 25 BTC a week. Gratz. Do you really have to sell all of your bitcoin at once?
Why don't you wait and sell smaller amount of BTC in batches? Instead of selling everything at once?
Or you can save some for later, price of BTC most likely will be higher. Your last account was closed down because you 'used' bitcoin or you had unconfirmed large amount of money transferred to you regularly?
Because it is a difference.

[SpecialFish]

Roughly 25 BTC per week.

Wow, you must be really big fish if your salary is 25 BTC a week. Gratz. Do you really have to sell all of your bitcoin at once?
Why don't you wait and sell smaller amount of BTC in batches? Instead of selling everything at once?
Or you can save some for later, price of BTC most likely will be higher. Your last account was closed down because you 'used' bitcoin or you had unconfirmed large amount of money transferred to you regularly?
Because it is a difference.

I do a lot of network architecture and consultation. Im helping set up a new farm for a friend/colleague I used to work with on the Isle of Man at the moment and the owner has A LOT of hash, PHs worth. So the deal was 25 BTC every week for 3 months as payment.

My last bank was closed down because they asked me why I had so many payments from random people going in. I said that I do consultation work and get paid from individuals. They said I should have a business account and be paying money each month and declaring it all via tax and closed down my account. HSBC. due to suspicious activity.

I would be happy to sell it each week. But im wondering if they see that much go in each week. I guess I could strike a deal with the same guy on localbitcoins or something to make it look less dodgy. I dont want to be involved in any money laundering stuff. because thats all bitcoin is really seen here by the media.

[gentlemand]

I don't think you'd have any problem with the tax man. As long as you tell the truth he isn't going to give a shit.

You very likely will have a problem with your bank depending on which one it is. The amount of pay isn't the problem, plenty of people are paid more, but the dreaded Bitcoin word might give them a fit.

By the sounds of it you should really have a business account set up anyway, that's grounds enough for them to dispose of you, but that's even worse in their eyes with Bitcoin thrown in.

Have you looked into Fidor bank? They're operating in the UK and are Bitcoin friendly. I don't know if they're totally up to speed yet with stuff like faster payments and there's some weirdness about not having individual account numbers or something, but it might be worth investigating.

[Vinz24]

Just use blockchain wallet or offline wallet. Then send a little by little amount to your local bitcoin wallet so that they will not get suspicious then convert to fiat.

[BitcoinNewsMagazine]

That is a lot of bitcoin congratulations! Coinbase is available in the UK do you have an account with them? Considering the amount of bitcoin I would have your boss send to a bitcoin address in a Trezor hardware wallet for secure storage, then transfer to Coinbase as needed to cash out to your linked bank account. Coinbase will take care of tax reporting so do not forget to claim as income on your taxes.

[SpecialFish]

I don't think you'd have any problem with the tax man. As long as you tell the truth he isn't going to give a shit.

You very likely will have a problem with your bank depending on which one it is. The amount of pay isn't the problem, plenty of people are paid more, but the dreaded Bitcoin word might give them a fit.

By the sounds of it you should really have a business account set up anyway, that's grounds enough for them to dispose of you, but that's even worse in their eyes with Bitcoin thrown in.

Have you looked into Fidor bank? They're operating in the UK and are Bitcoin friendly. I don't know if they're totally up to speed yet with stuff like faster payments and there's some weirdness about not having individual account numbers or something, but it might be worth investigating.

Good Idea! I will look into Fidor now.

That is a lot of bitcoin congratulations! Coinbase is available in the UK do you have an account with them? Considering the amount of bitcoin I would have your boss send to a bitcoin address in a Trezor hardware wallet for secure storage, then transfer to Coinbase as needed to cash out to your linked bank account. Coinbase will take care of tax reporting so do not forget to claim as income on your taxes.

That is also a good idea that I will look into.

Thank you both for your help.

[isvicre]

Don't use coinbase,  they aren't looking after your interests so don't give them your business.

Fidor bank is a decent suggestion. Do you have anything against p2p trades?  If I were you,  i'd trade some for cash,  exchange some to your new fidor account and definately hold some. The amounts are up to you,  but if you are also a btc advocate you should consider spending them. Spending is the most cost effective way anyway and a good thing for the currency.

[thejaytiesto]

Where are you from? If you are from Europe then Bitstamp has been pretty decent, just use an exchange. Localbitcoins are going to be really annoying to deal with to be honest, because the sellers have different requeriments. Sometimes they require you id and more, sometimes it's something else.. its just to just deal with an exchange. You are not going to be avoiding taxes unless you find a person to pay you in-person with cash worth of 25 BTC weekly which sounds like impossible. I wish I had your problems. Im trying to reach the 21 BTC dream and you get 25 every week... I just don't get how people make so much money. Why is your job so valuable?

[SpecialFish]

Where are you from? If you are from Europe then Bitstamp has been pretty decent, just use an exchange. Localbitcoins are going to be really annoying to deal with to be honest, because the sellers have different requeriments. Sometimes they require you id and more, sometimes it's something else.. its just to just deal with an exchange. You are not going to be avoiding taxes unless you find a person to pay you in-person with cash worth of 25 BTC weekly which sounds like impossible. I wish I had your problems. Im trying to reach the 21 BTC dream and you get 25 every week... I just don't get how people make so much money. Why is your job so valuable?

15 Years Networking experience and a friend who has a lot of money to burn on buying Bitcoin Equipment. He trusts me to set up his network and miners and I get 50% in return.

I been trying for years but im lucky I met this guy at work and become friends with him.

Don't use coinbase,  they aren't looking after your interests so don't give them your business.

Fidor bank is a decent suggestion. Do you have anything against p2p trades?  If I were you,  i'd trade some for cash,  exchange some to your new fidor account and definately hold some. The amounts are up to you,  but if you are also a btc advocate you should consider spending them. Spending is the most cost effective way anyway and a good thing for the currency.

I have a very good over 150+ BTC trade account on LBC, so I may find someone there, I have opened a Fidor account and I certainly will be holding onto some. But my main priority is my family. So if I can get myself a house and marry my partner I would like that

[TastyChillySauce00]

maybe using verified bitcoin debit card which has been increased the limit by verifying it,withdrawn your money periodically so it'll not exceed the daily withdrawal limit,seems complicated indeed,but i think it's just another good idea to prevent from getting closed down your bank account

[Yakamoto]

My advice would be to just pay the taxes, and if you have the paper trail showing everything back to the company and that the company is legit and everything, there is no reason that anyone should get suspicious of your withdrawals from localbitcoins. If you're really worried about that then just stagger your withdrawals, and only do 1/2 to 1 BTC at a time.

You've also said you have quite a network of people you know that are involved with this, I'd see if you can get them to help with a small portion of the money, or whatever you trust them with. Just keep in mind a lot of money can corrupt someone.

[SpecialFish]

My advice would be to just pay the taxes, and if you have the paper trail showing everything back to the company and that the company is legit and everything, there is no reason that anyone should get suspicious of your withdrawals from localbitcoins. If you're really worried about that then just stagger your withdrawals, and only do 1/2 to 1 BTC at a time.

You've also said you have quite a network of people you know that are involved with this, I'd see if you can get them to help with a small portion of the money, or whatever you trust them with. Just keep in mind a lot of money can corrupt someone.

Yeah.

I am more than happy to pay taxes, I would let taxman take his part if he wanted, its just the banking that im worried about as they always get suspicious.

Maybe I should speak to my bank first and let them know il be in contact with HMRC or something.

[Traderbtcc]

Well i think it will be too easy to cash out.There are too many exchange site and I think it's safe.Myself used those exchange site and cashed out too many bitcoin.Never had issues.If you don't feel comfortable my advice to you will be,Cash out few coins in every transaction.If you cash out 25 BTC at one time it will look suspicious but if you cash out like $1500-$2000 per transaction i don't think they will care think about it.Also you can deal person to person.I think its one of the better option you have right now.

[X-ray]

My advice would be to just pay the taxes, and if you have the paper trail showing everything back to the company and that the company is legit and everything, there is no reason that anyone should get suspicious of your withdrawals from localbitcoins. If you're really worried about that then just stagger your withdrawals, and only do 1/2 to 1 BTC at a time.

You've also said you have quite a network of people you know that are involved with this, I'd see if you can get them to help with a small portion of the money, or whatever you trust them with. Just keep in mind a lot of money can corrupt someone.

Yeah.

I am more than happy to pay taxes, I would let taxman take his part if he wanted, its just the banking that im worried about as they always get suspicious.

Maybe I should speak to my bank first and let them know il be in contact with HMRC or something.

that seems the bestway, however you can't just bypass bank using offshore account is a bad idea,you would be accussed to avoid the tax and get you to more trouble,just do the way government reccommend to you and you'll be fine

[SpecialFish]

Just spoken to Barclays Bank UK.

I explained the whole situation and they said its fine, as long as I'm depositing or someone else is depositing in pound sterling its fine. They would have to open a sole trader account for me. but they said they really dont care that much about how I make the money as long as its not flagged up as fraud. There will be no alarm bells ringing on a sole trader account unless I get over £100,000 a Week.

As for Tax, I need to speak to HMRC. But Barclays were more than happy for me to use them.

[yenxz]

I think you will have no problems with the taxman if you say that you are actually about bitcoin . but you 'll get in trouble if you
not informed about it .

I suggest you use a debit card verification bitcoin have been enhanced. first you have to pull your money on a regular basis so that
shall not exceed the daily withdrawal limit . it looks complicated but I think it's just a good idea to prevent it from closing your bank account .

[Kprawn]

If your goal is not to launder money or to dodge the taxman as you claim, you should have nothing to worry about. The banks flag big transactions automatically and then they investigate before they

close or suspend the accounts. I have many friends, who receive huge salaries every month and their accounts are still open. Some of them do consultancy work too and also get payment from many

different accounts. Only difference being that it's all in fiat. Why do you want to convert everything at once? .... Just take smaller amounts as needed and transfer some smaller amounts to your family

members accounts, when you need to pay them for something. You only have to pay Capital Gain when you sell the coins. 

[h3rlihy]

I just use Xapo & e-coin debit cards and don't need to sell to sterling. Has been working out for me. I know if I started selling shitloads of coin on LBC my account would probably be closed inside a month