Topping up a business account

cyberdog · May 28, 2005

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 · May 29, 2005

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 · May 31, 2005

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

gary · May 31, 2005

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.

Ozzy · Jun 1, 2005

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 · Jun 11, 2005

cyberdog said:
Am I ok in topping up the business account in this way or not??Thanks :?

Hi,
I appreciate everyones input. Thanks.
I have some more questions, but I will put them in their own appropriate thread. Thanks Again

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Topping up a business account

cyberdog

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