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Does client need a bank account (not business a/c)

I know there are always questions about whether to open a business bank account but this is about having an account at all.

I have a client trading as a takeaway.  They don't have a bank account at the moment as they pay for everything (and I mean everything - elec, rates, phone etc etc) with cash.  They will shortly need to be registered for VAT but even then, I still have clients who use the payslips and pay cash over the counter so even that is not necessarily an issue.

Is there any requirement for them to have a bank account?  I couldn't find any reference on HMRC's website.

I'd never come across this before and wondered if anyone else had?


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22nd Jun 2018 13:04

I don't think they 'need' a business bank account, although, in my opinion, it is highly recommended.

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By SteveOH
22nd Jun 2018 15:23

It is not a *necessity* to have a bank account but your client would need to be s**t hot on having all the controls in place if it is to be 100% cash based. You know what HMRC are like with cash based businesses!

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25th Jun 2018 14:27

Thanks guys, I feel the same way really - I'd hate to come up against HMRC in a purely cash business (guilty until proven innocent!) although I imagine if they did have a bank account the bare minimum would be banked to cover any DD's and the rest would still be cash. Banks make it too expensive to bank everything then pay out unfortunately.

As long as there is no legal obligation.... - but I will be trying to convince them to set something up.

Appreciate you taking the time to answer, many thanks.


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