Avoiding tax (UK)

[yapolex]

I am thinking of sinking in £100 into BitCoins, but didn't want to let my bank know what my BitCoin account was. I see that there are now services which allow one to transfer money directly fro man account and into a BitCoin account, but that means the bank knows who that address belongs to.

So I decided to go the cash route, which is anonymous, however the guy I am to meet isn't round my area much beyond every two weeks, BitCoin is still in its infancy here right now.

Am I right in thinking like this? I see services like http://blockexplorer.com/ which show the activity of any account and that could easily show who people are, I don't want that.

I plan to invest and sell to make money, nothing else.

[1714001656]

1714001656

[1714001656]

1714001656

[randerson]

Why don't you want your bank to know your acct. number if you're just looking to invest?  BTC isn't illegal.

[bsost]

If you transfer 100GBP to an exchange, and subsequently buy bitcoins, on said exchange and transfer them to your bitcoin wallet. All the bank will know is you transferred 100GBP to another account, possibly charging fees for the transfer.

As for blockexplorer, yeah the bitcoin block-chain is a public record of transactions, X btc from wallet address to wallet address, where your wallet address is more comparable to a Swiss numbered account that a UK current account number. Your UK current account number identifies You, your bitcoin addresses identify your transactions, but not You.

Tax Avoidance, your bank is obligated to inform HMRC on some transaction, and i can't be bothered to look it up, but you can,  certainly a  100GBP international transfer is not something they will pass on to HMRC, now if you we're to move and sell 25,000GBP, then they might want to know where you got it, and where your putting it.

Simple answer; Don't Worry so Much, Be Happy  

edit, ooh:  if your speculating, then it might be worth noting i believe if we're to exchange to GBP and deposit more than 3000GBP in your UK account, your obligated and maybe your bank is obligated to inform HMRC, as it is probably taxable income.

[Xiaoma]

I already had to answer to lots of questions with a 3k GBP transfer... UK banks are too paranoid sometimes
But anything less than a grand is likely to be ignored, they have bigger fishes to fry

[bsost]

i don't know about paranoid, but they do have to follow the UK FSA, and HMRC regulations, and 3K seemingly appearing out of nowhere?

Bitcoin is a viable currency, but that doens't mean it's lack of regulatory oversight exempts it or its users from territorial laws & customs.