Borrowed money off in-laws and now they won’t let us pay them back?

[Overthis22]

My car reached the end of its life earlier this year and we didn’t have the funds to get a replacement. Cost of living and all that. I really need a car as there isn’t any public transport where we live (rural). We looked at getting finance but it worked out so expensive in the long run so my husband’s parents loaned us the 5k to purchase the car directly. This was very kind of them and we really appreciated it at the time. But my DH had since tried to repay them the money and they keep saying things like ‘no hurry’ and ‘don’t worry’. My DH received his end of year bonus this month and tried to explain that if we don’t pay them back now we may not have the funds again until this time next year, and they said ‘we can wait until next year’. I’m confused. If they didn’t want it back they wouldn’t say about waiting until next year so why not just let us pay it now. I’m not close to them so I don’t feel comfortable speaking to them about it. Not sure what to do now other than offer again next year but I don’t like feeling like we’re in debt.

Has your husband asked a direct question "Do you actually want the money back? " Or variation of the that. PIL answer "no" you answer "great " PIL answer "yes" you answer "then we would like to do that now and not wait any longer" any other muttering/fudginess from PIL may require you to say "We are very uncomfortable with this situation"

@HotChoxs why do you think that?

why do people spout this nonsense like it’s true. It’s fucking irritating.

I was about to say this too.

Sorry Hotchox - tax adviser here and you are way off the mark. As others have said there are only implications if the donor dies within 7 years. A joint gift of £5k is £2.5k each and if they made no other gifts in the tax year will be completely exempt. There is also a carry forward allowance as well.
You used to have to mention gifts on your tax return but that was at least 30 years ago.

Did you see the bit where that's about an overseas transfer?

However if it’s a loan and they die their Executors would need to declare the loan as one of their assets. If their estates are likely to be subject to IHT then gifting is best if they can afford it.

Agree with others, they don't want it back and are being polite. Keep it in an account and keep bringing it up, eventually they'll probably say it was a gift.

Did you see the bit where the advisor said there would also be no implications if it was a U.K. transfer?

Your DH says to them thanks for the loan, we’re paying it back to you now, please give us your account name, number and sirt code. If they do the vague pay it back next year, when you feel like it, put it in a savings account or buy premium bonds and leave it there. Tell them to send their bank details whee
they want it paid.

But you've just made my point for me, how do you prove it's a loan and not a gift.

Stick it in an interest bearing notice account. You won't be tempted to spend it.

Are there any siblings? Perhaps they don't want anyone to think it is a gift because of fairness.

Oh come on. You are obviously just trying to wind people up. I am going to report you

Sounds like they may want it back, but want you to keep hold of it for a little bit longer in case you need it. No point giving it back if you’ll need to borrow again

They don’t want it back. Put it away where you can’t touch it until this time next year and forget it. Like they have.

Report me if you like. Just hope someone doesn't report you to hmrc. Sleep well

Use the £5000 to buy premium bonds. Money is safe, and you might win! Also it is easy to get access, when you might need it to pay back!

Wait until Christmas. They may be planning to surprise you by making the loan into a gift. (My dad this - substantially smaller amount though)

So weird that you’re doubling down when you’re wrong.
Sleep well.

I think my approach would differ if DH has siblings. If he has, I would just say please email us the bank details and we will transfer the money. If not, then get DH to check whether it is a gift. If not, then pay it back now. If they are financially comfortable and he is an only child they may not be fussed one way or another about 5k as all / most of it will be likely to come to him and 5K generally makes more of a difference when you are young. For old people, it may only mean 2-3 weeks nursing home fees.

You're wrong, stop digging.

Just text them and ask for their bank details.

Except you'll see above the tax adviser backed up. As I say no proof of gift = open to interpretation to hmrc. Again, sleep well.

What do you think needs to be reported to HMRC exactly. I honestly think you are just confused. Gifts are not subject to income tax so you’d never report anything when you give/receive them. Sometimes if an estate is valuable enough (& most people’s aren’t) they can be relevant for inheritance tax but you’ve no reason to think that’s something the OP even needs to consider.

Gifts of 5k don’t need to be reported to HMRC.
Sleep really well.