Cash payment to Personal Account then transfer to Business Account

[mds1256]

Is this possible?

Is it allowed to pay cash payments into my personal account then transfer the monies to the business account (to save branch cash payment fees?).

I know its technically possible but wonder if the bank / HMRC would questions this?

 

[Scalloway]

If you are a sole trader and there is a clear paper trail it might be ok. How do you account for cash sales at the moment? Do you reconcile takings to till Z totals?

The amounts should tally exactly to avoid HMRC looking on it as being a dodge to cream off funds without paying tax.

Your bank may start to notice if it occurs regularly though.

 

[David A]

Someone suggested to me recently that a business should have a deposit account and pay monies into this, rather than the current account.

A number of banks apparently do not charge for credits into a business deposit account.

 

[jon.jenkins@smartaccounta]

I've got clients who have been doing this for years and as long as you have a full audit trail of when/who/how much the transactions were then it should be fine.

IMO though it is a lot of hard work to do it this way and reconcile that everything has happened correctly. I would speak to the bank about the tariff you are on first as it might just be a case of switching and making life easier.

The banks will wise up to this at some point (not).