I'm currently claiming ESA and I have a friend who wants to invest in cryptocurrencies like bitcoin but his son is objecting saying that it's a waste of money.
To prevent any arguments my friend came up with the wonderful idea of using my bank account! I'm worried that this could be something that interferes with my benefits and that maybe I could lose them and/or my council property, but on the other hand I don't want to let my friend down. It's not a lot of money (only £200 to begin with) but he says if it's successful he would want to increase it.
His son has access to his bank accounts and credit cards so if he used his own accounts his son would know instantly.
Does anyone know if I would get hassle from DWP if I used my account?
I really wouldn't do it. Trying to explain where the money is coming from and going to isn't worth the hassle with benefits, and also, if they do make a profit, with HMRC for income tax.
You friend could open up another account which his son doesn't have access to, if he really wants to do this, but I wouldn't get involved. Furthermore, if he does make a big loss, then there's no guarantee you'd get your money back if it's come from your account, as sounds like his son wouldn't reimburse.
no don't do it. i dabbled in forex, binary options for few years. made lots of money, then lost it lol. one of the brokers were kind enough to give half of it back, as it was their traders who walked me through taking the cursed trades.
only about 10% of people will suceed in those games. only because they are super-disciplined and practice smart money management. they are usually ones that work in banking. you will be throwing your money away for sure.
its because of this lockdown crisis and people in hardship, and they are being tempted into gambling: https://www.dailymail.co.uk/news/article-8162159/Gambling-firms-accused-luring-punters-coronavirus-lockdown.html
same happened during 2008 market crash, and so many people were looking for ways to cash in on the money markets.
I dabbled with crypto currency a year ago or so when it was very volatile, stayed in just a bit too long so instead of trebling my money (wasn't a large amount) , I lost a small amount, so I was lucky, but bear in mind, if someone makes money on these type of investments, someone else has to lose and it's the inexperienced ones who tend to be the people who do.
You were lucky Bill to get some back.
Thank you all for your advice. The money isn't an issue - it's only £200 and he's perfectly prepared to lose it.
My problem is that I don't want to let him down. He's been there through thick and thin for me and we've been mates for over 30 years. If he opens another account his son will know as he still lives with him. He doesn't even mind if he has to pay income tax on any profits.
The issue is for me - whether or not I will get in trouble with DWP. I'm in quite a dilemma here and I can't get through to the DWP to discuss it with them.
If DWP check your accounts, then you are asking for trouble. At the very least, I would open a separate account - something like Starling or Monzo is online only - apart from getting a debit card delivered, nothing else comes through the post, it's all done on the mobile phone, so your friend might be able to do this. Or tell his son to keep out of his financial affairs.
Hello, just moving this thread to the Finances section. Thanks, Nell
Well you could knock me down with a feather!
I spoke to the DWP and they said yes my friend can use my account as long as I don't accumulate over £6,000 in there. I've opened a separate account for my friends bitcoin dealings.
I think I need to sit down 🙂
DWP is correct re £6000, however what if your friend does make so much money that it goes over £6000 and your benefits and housing stop? You may also become entangled with HMRC. It might start with £200 but if they do well will they want to invest more?
Are you also certain re your mates intentions and there are no concerns re money laundering?
Have you drafted up a private agreement in writing confirming that said monies belong to your friend and that they are repayable? Is there a risk that if it stops your benefits then you will want to keep the money in the account to cover your bills and not pay it back to your friend thus resulting in a fall out?
What if there is fraud on the account, how do you untangle that?
At the moment it might seem straight forward but there are so many risks that it is better to not do it.
However if you do then the things I have mentioned should be considered in advance.
On a separate but linked note, people on certain benefits can save up to £50 per month for 4 years with Help to Save and get a 50% tax free return on your savings. The 50% is paid out after year 2 and year 4.
https://www.gov.uk/get-help-savings-low-income
Thanks
If I were you, I'd suggest him alternatives. For example, to set up a separate account in his own name, or finding a reputable investment platform to use.