View Full Version : Topping up a business account
cyberdog
28th May 2005, 15:19
If I was a sole trader and I had just opened a business account with say £50. If I was then to take some of my own money and put it into the business account, would the tax man not wonder were the deposit came from. Am I ok in topping up the business account in this way or not??Thanks :?
Alpha
29th May 2005, 21:59
i do not think that the HMRC would bother to ask where £50 to start a business account came from. They may ask about £5000 if there was a reason to do so.
They may also ask where funds come from if they see continuous topping up of a business account if you have no other sources of income.
This all of course assumes than the HMRC chooses you to investigate for some reason.
Top Hat
31st May 2005, 08:58
If your a sole trader, it does not matter.
You can trade from your personal account move money around, as you please.
The reason for having a business account is to keep thing simple.
So as long as you keep records up to date you should have no problems
That's not a problem - it's effectively investing your money in your business, and as long as you can account for all of it you should be fine. Just keep a record of everything you put in and take out and then if there are ever any questions it'll be easy to find the answers.
gary is right... any money you put into your business account is fine so long as you account for it correctly in your books. IN this case I would imagine you have put it into your business as a "loan".
cyberdog
11th June 2005, 19:34
Am I ok in topping up the business account in this way or not??Thanks :?
Hi,
I appreciate everyone’s input. Thanks.
I have some more questions, but I will put them in their own appropriate thread. Thanks Again:D