Paying Cash In

[snappyfish]

I take small amounts of cash being self employed. I have a 1k limit before fees for paying in with my business bank account on a monthly basis.

I can pay in up to 1k a month in cash without fees into my bank. Is it ok to only pay in this amount each month, to avoid fees?

OR do people general pay in exactly what they have taken for book keeping purposes?

I use wave accounts to manage my cash also always know where i am with the balances etc.

 

[MyAccountantOnline]

It is good practice to bank all cash received, but provided you accurately record all income you don't have to pay it into your bank account.

 

[DrinkMan]

I take small amounts of cash being self employed. I have a 1k limit before fees for paying in with my business bank account on a monthly basis.

I can pay in up to 1k a month in cash without fees into my bank. Is it ok to only pay in this amount each month, to avoid fees?

OR do people general pay in exactly what they have taken for book keeping purposes?

I use wave accounts to manage my cash also always know where i am with the balances etc.

- Are you not able to deposit the cash into your personal account and bacs into your business account to escape the in-branch fees?
- you could also use the cash to pay some of your expenses.

 

[Mr D]

- Are you not able to deposit the cash into your personal account and bacs into your business account to escape the in-branch fees?
- you could also use the cash to pay some of your expenses.

If bank finds out they can close the account.

 

[DrinkMan]

If bank finds out they can close the account.

As small amounts were mentioned, it shouldnt really be an issue.

 

[Mr D]

As small amounts were mentioned, it shouldnt really be an issue.

Then also should not be a problem paying small amounts into business bank account and avoiding the risk.

 

[DrinkMan]

Then also should not be a problem paying small amounts into business bank account and avoiding the risk.

The question was to bank a small amount of cash over and above the threshold, to avoid fees. If we talking a few quid here and there in the business account via personal account everyone will be fine. Lets get real. Banks wouldnt worry, if we’re talking large sums on a regular basis it may be an issue.

 

[Mr D]

The question was to bank a small amount of cash over and above the threshold, to avoid fees. If we talking a few quid here and there in the business account via personal account everyone will be fine. Lets get real. Banks wouldnt worry, if we’re talking large sums on a regular basis it may be an issue.

They see fee evasion and breaking account agreement different from you.

By the same token are you going to nick a tin of beans from a major supermarket? The supermarket wouldn't worry, if we were talking large amounts of stuff on a regular basis it may be an issue.

 

[pentel]

How much are the fees?

Banks usually charge around 0.7% for paying in cash which is less than taking card payments cost for most people..

Is it worth the effort to avoid them?

 

[DrinkMan]

Then also should not be a problem paying small amounts into business bank account and avoiding the risk.

The question was to bank a small amount of cash and avoid fees. If we talking a few quid here and there in the biz account via personal account everyone will be fine. Lets get real. Dont think there

They see fee evasion and breaking account agreement different from you.

By the same token are you going to nick a tin of beans from a major supermarket? The supermarket wouldn't worry, if we were talking large amounts of stuff on a regular basis it may be an issue.

No, I have no plans to rob a supermarket. But thanks for your insightful and well thought out illustration. It really compares accurately with a self employed trader looking for ways to deposit cash.
But bang on mate for the tin of beans / robbery analyogy, you’re a genius.

 

[Mr D]

The question was to bank a small amount of cash and avoid fees. If we talking a few quid here and there in the biz account via personal account everyone will be fine. Lets get real. Dont think there


No, I have no plans to rob a supermarket. But thanks for your insightful and well thought out illustration. It really compares accurately with a self employed trader looking for ways to deposit cash.
But bang on mate for the tin of beans / robbery analyogy, you’re a genius.

Either way a business pays. And a business can take action to protect itself.
Its not my bank account or yours being shut.

 

[DrinkMan]

Either way a business pays. And a business can take action to protect itself.
Its not my bank account or yours being shut.

Genius mate... pure gold.

 

[Mr D]

Genius mate... pure gold.

Why thank you.
Nicest thing anyone has said to me in an hour.

 

[DrinkMan]

Why thank you.
Nicest thing anyone has said to me in an hour.
...

Im just depositing some cash ... cant chat now, then i’ve off to the supermarket for a tin of beans.

 

[Paul Norman]

How much are the fees?

Banks usually charge around 0.7% for paying in cash which is less than taking card payments cost for most people..

Is it worth the effort to avoid them?

In reality, this.

Infrequently, customers give me cash. I do pay a small fee for depositing it. I pay a small fee for taking credit cards - which is how most people pay me. I pay a larger one if they use paypal, and a larger one still if they pay by cheque.

I would just bank the money and not worry too much about the fees, personally. But you can, of course, operate on a cash basis, keeping records, of course, and pay your business bills using that cash. That sounds like hassle, though.

 

[Mr D]

]
Have fun.

 

[Victoria_V]

It would be a good idea to pay in all the cash you receive from your customers into your bank account as it may make completing your self assessment tax return easier and you will also have one central place that holds records for the income and expenses of your business.


However, if due to high bank charges, you only want to pay a certain amount into your bank account, keeping records of your income on a spreadsheet or any other method should be sufficient.


https://www.gov.uk/self-employed-records/what-records-to-keep


If your bank is charging you high fees for depositing cash into your business bank account, why not give challenger banks such as Amaiz a try? Our business bank account has been specifically designed for small businesses like yours and there are no hidden charges to pay when you pay in cash or for anything else. All you pay is a monthly fee of £9.99 and everything is covered.


With the Amaiz account, you can deposit cash for free at any post office branch.

 

[DontAsk]

There's no harm in holding some cash back until the following month. Just transfer it to the petty cash account in the meantime.

 

[snappyfish]

Thanks for all the comments. I do keep records as mentioned via waveapps accounting.

Invoice is raised and marked paid cash immediately. Wave Accounts has a "cash on hand" account. I then go to bank pay in and transfer from "cash on hand" in waveapps to "business account" and i never lose track.

If really was me just penny pinching on fees.

If I have £1200 to pay in one month, i will stick £1000 in to avoid fees, then next time its normally under the fee amount and it all goes in.

Thanks