Should i pay my Rent directly to my Landlord or Withdraw as "Drawings" first - From Business Account

scorpio13

Hi Guys, wasn't too sure about this one, so thought i'd ask on here.

I'm not sure whether i should pay my Landlord directly from my Business account or do i need to withdraw the money to my current account (as drawings) first?. As surely paying it straight into his account will show that my Rent is going directly to him.

I am a Sole Trader.

Sandtree

As a sole trader there are no “drawings” as its all yours. 

It produces a cleaner set of records if you move the money to your personal account and then pay your landlord from there (assuming its your home not business premises) but no legal requirement to do so.

scorpio13

OK, thanks.

The main reason i ask, is i'm going to be moving within the next 6 months - so wondered if it "looked better" to the letting agent if they could actually see the Rent going into my Landlords' account. Rather than a certain amount transferred out of my business account to pay rent and various bills etc.

Yahoo_Mail

scorpio13 said:

OK, thanks.

The main reason i ask, is i'm going to be moving within the next 6 months - so wondered if it "looked better" to the letting agent if they could actually see the Rent going into my Landlords' account. Rather than a certain amount transferred out of my business account to pay rent and various bills etc.

I've rented a few times and they never asked to look at my bank statements.  A credit check + reference was sufficient.

scorpio13

Yahoo_Mail said:

I've rented a few times and they never asked to look at my bank statements.  A credit check + reference was sufficient.

Are you self employed?

I was under the impression if you're self employed they ask for 6 months bank statements!

I think i'll ask over on the Renting forum.

Thanks for the replies.

CKhalvashi

scorpio13 said:

Yahoo_Mail said:

I've rented a few times and they never asked to look at my bank statements.  A credit check + reference was sufficient.

Are you self employed?

I was under the impression if you're self employed they ask for 6 months bank statements!

I think i'll ask over on the Renting forum.

Thanks for the replies.

It will be up the the individual agent/landlord. There are no hard and fast rules.

Ultimately, it won't really matter, however keeping personal and business finances 'clean' for tax purposes generally will make your life so much easier.

J_B

Sorry, it's not clear.

Do you rent a business premises or residential?