Hi. Myself and my husband are hoping to finish paying our mortgage next year, meaning we will have paid off a 30 yr mortgage in 7 years. We have been overpaying every month and paying off lump sums whenever we can. I'm just wondering what happens when u finish paying it off? Both of us are in jobs where we are paid weekly in cash. We're not sure how much of it is put through the books. So if you have to show evidence of how you paid off the mortgage so soon, we could be in trouble trying to explain it! Don't want to get our bosses in trouble. Do the banks ask questions about how you paid it off or just sign off on it? Thanks in advance.
Will Revenue want to know where we got the cash to pay off our mortgage?
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Brendan Burgess
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Do you get payslips?
Did you get P60s at the end of every year?
If you ever need social welfare, you could well be in trouble.
Brendan
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Normal cash-in-businesses are part-time barmen/hairdressers etc - not lucrative enough to be able to put by what you guys have been doing ... ...
gnf_ireland
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My quick calculation shows me that to pay a 220 mortgage down in 7 years (assuming 2% since I have no idea what your interest rate is) would take monthly repayments of 2800 approximately. At 4%, its just over 3,000 a month.
That equates to approximately 60,000 a year pre tax income just to pay the mortgage. You have to live after that
For that to work, you would want to be making in the region of 100k a year minimum
Most people I know who make that kind of money are well aware they are making it and also don't get paid cash in the process. They are also fully aware of what their finances are and don't really need to ask the questions above
So if I was a betting person, I think the OP knows that income has not been declared and while they used it to pay off the mortgage, they now realise there is a traceable financial trail and are concerned as to what it will mean for them. I also think they know the answer to that question already if they are caught !
That equates to approximately 60,000 a year pre tax income just to pay the mortgage. You have to live after that
For that to work, you would want to be making in the region of 100k a year minimum
Most people I know who make that kind of money are well aware they are making it and also don't get paid cash in the process. They are also fully aware of what their finances are and don't really need to ask the questions above
So if I was a betting person, I think the OP knows that income has not been declared and while they used it to pay off the mortgage, they now realise there is a traceable financial trail and are concerned as to what it will mean for them. I also think they know the answer to that question already if they are caught !
I have thought about this post a few times over the last few days pondering how long it would taken me to pay off my mortgage if I didn't have to pay those pesky USC, PRSI and income tax charges.
Needless to say it would be very much quicker than I have been able to do.
To be able to pay off €220,000 in 7 years, have an unemcumbered asset and still live and pay bills is quite a feat and involves a substantial amount of money as other posters have pointed out. If someone can manage that through their taxed income I would admire them.
When someone admits that they and their partner get paid weekly in cash & they're not sure(!?) how much goes through the books then it's quite a different thing. If you get a payslip and a P60 then you know how much is going through the books & what you & your employer pay to Revenue. If you don't get those, then it speaks for itself.
I guess it's all good - at least until Revenue come knocking asking questions.
Needless to say it would be very much quicker than I have been able to do.
To be able to pay off €220,000 in 7 years, have an unemcumbered asset and still live and pay bills is quite a feat and involves a substantial amount of money as other posters have pointed out. If someone can manage that through their taxed income I would admire them.
When someone admits that they and their partner get paid weekly in cash & they're not sure(!?) how much goes through the books then it's quite a different thing. If you get a payslip and a P60 then you know how much is going through the books & what you & your employer pay to Revenue. If you don't get those, then it speaks for itself.
I guess it's all good - at least until Revenue come knocking asking questions.
If you have been paying off substantial lump sums all along then I am sure it has probably come to the bank's attention already. It would be normal to look for patterns of transactions that don't fit with the normal pattern of the account bearing in mind the bank already knows your income from your application.
I regularly deposit large cash sums into my bank , I lodged 20k cash this week that I won at Cheltenham the cashiers always ask where the money came from , I tell them I won it gambling and you can generally tell from the reaction that they don't believe you , in fairness it does sound dodgy but I'm telling the truth , every week they see a small wage go in and most weeks a large cash sum would go in , there is not much I could do if revenue investigated as you don't get paperwork from a bookie just cash in hand , so if bank asked you where you got money or revenue did you could say you won it gambling and they would never really know , cause I genuinely win it and I've no proof , but meh yeah you should be getting paid properly
The thing is though the bank doesn't really care what reason you give, their responsibility just lies with reporting it to their own internal money laundering officer who in turn will report if they feel necessary to a higher authority to be investigated. The bank doesn't actually investigate it themselves, they just pass on the info.
Yes. They may ask but they don't care. Same as they ask for a PPS number when you open an account, I never give mine as it's not their business notwithstanding the fact that they are obliged to ask.
You walk from the bookies with cash in this amount, regularly? I didn't think the High Street bookies paid out large amounts in cash any more? (I'm assuming you didn't bring it over from the on course bookmakers at Cheltenham
)Sometimes AAM comes up with great openers, this has to be one of them.
That's an amazing cash business X two !
To answer your question, I cannot see any reason for the bank to ask you any questions since they haven't done so up to now. And another poster has helpfully pointed out the Bertie defense.
You've a pattern of cash payments so no buttons are going to be triggered, and actually there are people who pay mortgages by cash, and more so during the downturn with people up to all sorts with mortgages.
Your real question actually should be, how do I explain this to revenue if they ever ask. The banks are the least of your problems then.
I would dearly love to know the cash business your bosses are in though. I guess a PM on this is out of the question ! And I will not divulge it. Just to store in the dark recesses of my brain in the 'category of what people get up to'. As I'm an occasional gambler I'd say you have a less than 5% chance of getting caught.
While they don't actually care what the reason is they can and will report the transactions to Revenue if they are not satisfied that it fits in with the account profile, now that mightn't matter if it is all above board but I think OP is implying all is not ok.
Same thing won't happen if you don't provide your PPS number.
Just because the bank hasn't asked questions up until now means nothing, it doesn't mean it hasn't been noted, you don't always alert the customer that there is a concern about their account.
Same thing won't happen if you don't provide your PPS number.
Just because the bank hasn't asked questions up until now means nothing, it doesn't mean it hasn't been noted, you don't always alert the customer that there is a concern about their account.
You walk from the bookies with cash in this amount, regularly? I didn't think the High Street bookies paid out large amounts in cash any more? (I'm assuming you didn't bring it over from the on course bookmakers at Cheltenham
It depends on the week and what kind of sports are on , but i'd always be paid out in cash , sometimes they will tell you to come back this afternoon or tomorrow , they either go to the bank to get it or other shops. But yeah I always take cash only and deposit to my bank then .
Any reason in this day and not to do it by bank transfers?