Afternoon All,
I have a client who receives 50% cash takings and 50% card payments. The bank fees for depositing cash are increasing, is it illegal to bank the cash in his personal account and do a transfer by bacs to his business account?
Many thanks,
Louise
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Replies (3)
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No law would be broken, but the bank would be unhappy that he was using a personal account for business purposes, and furthermore would be likely to notice that he was.
It's fairly common practice but I would advise client that if the business came under investigation then they'd have to make their personal bank statements available too
Cash - bank charges - saving on
I once had a cheque-cashing and pawnbroking client who had a need for cash which ordinarily would be drawn off his bank at some expense.
He struck a deal with a local pub whereby the pub would hand their cash to my client in exchange for a cheque for equivalent amount from him. It worked very well in terms of saving on bank cash banking / cash drawing charges.
In the case stated in the query I would just urge caution if the business happened to be a limited company as potential overdawn directors loan issues could arise unless the cash paid into private a/c was properly managed.