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sal_III

I hope you are operating as a sole trader. This won't really work wit ha limited, where company finances are separate from your personal finances.

If you have an accountant - he is the best person to ask this question to.

Terry_Towelling

Where will you be banking the cheques - in your personal account or in the business account?

I imagine there are fees for banking cheques too. If your plan is to pay the cheques into your own personal account and then transfer a lump sum into your business account wouldn't there still be an identical charge for the cash transfer?

What would be your plan if any of the cheques bounced?

Mistral001

Bank fees are just a business cost, like rent, insurance, wages etc. Get used to it if you want to run a business.

You run a risk of cheques bouncing. That can happen with friends and relatives just as easily as with strangers. If a cheque bounces you will be charged a fee by your bank which if I remember correctly is quite large.

In effect you will be running a bank for your friends and family so might come under the Financial Services Act meaning that you could be acting illegally if you did not register as a financial service.

Vortigern

!!! wrote: »

Why can't you just pay the banking fees like any other business would?

This is MSE. Businesses can save money too - and pass on those savings to their customers.

Ergates

sal_III wrote: »

I hope you are operating as a sole trader. This won't really work wit ha limited, where company finances are separate from your personal finances.

Then just make the cheques payable to the business, same difference.

Ergates

Davy_Jones_II wrote: »

Legal, yes, but really inadvisable in terms of how you’ll explain this if questioned for taxes.

molerat wrote: »

No problem unless of course you are trying to divert your taxable business income through your relatives into your personal account.

Given that he OP would be exchanging cash for a cheque - which has to be banked (unlike cash), then this isn't a method that could be used to avoid taxes - quite the opposite.

Mistral001

Vortigern wrote: »

This is MSE. Businesses can save money too - and pass on those savings to their customers.

I think the argument is that it is a false economy for reasons expressed in several posts above. Also, if the OP is deemed to be operating a financial service the cost of registering as a financial service could make it a very costly way of operating a business.

Davy_Jones_II

Rocket21 wrote: »

I'm not trying to hide money, everything is accounted for. I'm banking the exact same amount's as always just without the cash.

I know, and I’m not suggesting otherwise, but keeping your books as simple as possible makes things far, far easier if and when you are audited.

born_again

Rocket21 wrote: »

Would it be legal for me to exchange cash for cheques with family and friends. The cheques are from their own accounts and will be made out to my name.

Well it's going to arouse suspicion at banks end. As to why you have gone from cash deposits to cheques.
I can see a possible acc being locked thread in the making....

Also tax man may take a very close look at your books. Would be very hard to prove cash taken against cheque paid in, when family members are spending it on all sorts of things, they won't be able to account for.

Perhaps look at getting a cheap card reader from one of the many companies that now do them and save some of the charges.

colsten

born_again wrote: »

I can see a possible acc being locked thread in the making....

Just what I was thinking.