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cash payments

Paying invoices from personal account and keeping cash

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For a Limited company that issues an invoice occasionally I am paid in cash.

We are pretty, remote nearest bank 150 mile trip so not convenient to deposit this cash easily.

Is it possible for me as owner to keep said cash from sales and transfer equivalent amount from my personal account into my company business account? Without it being illegal or coming unstuck with HMRC. Not big money here 1-2k a year.

Thanks

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By johngroganjga
03rd Jul 2020 22:51

You obviously have to record what has happened accurately in your bookkeeping, but you don’t necessarily need to introduce your own money into the company to replace the cash belonging to the company that you have taken out. Do you never take payments from your company as wages or dividends? Why not just treat the cash withdrawals as payments on account of your next wage or dividend?

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By Paul Crowley
03rd Jul 2020 23:01

Do it myself, usually personal cheque rather than transfer. Keeps windows and doors the right way round.
Income stays as income.

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RLI
By lionofludesch
04th Jul 2020 10:31

I'm a sole trader so slightly different but I never bank cash.

Debit drawings credit sales - or sales ledger.

If you want to replace the cash with your personal cheque, that's fine.

If you want to keep the cash, debit DLA, credit sales.

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By Paul Crowley
04th Jul 2020 10:52

If we are responding to a client, best that accountant does not need a load of explanations.
Hence cheque not transfer as transfer looks like capital introduced

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