Self-employed without a bank account

Graham_the_Hog · 2 May 2018 at 7:03PM

I've oversimplified the issue in the title of this thread, please forgive me.

I have just registered as a sole trader. I am a gardener. People pay me cash. I earn very little.

I would like to:

Receive cash from customers
Spend that cash on personal and business things (e.g. My weekly food shopping, a new spade)
Every now and then, say once a month, if I have any cash left over, put it in my personal bank account for rent

My question: provided I keep an accurate record of all cash I've received from customers, and of all business expenses, can I legally operate this way or does me not banking money and then taking it out again go against any HMRC rules that you know about?

Note: I have no desire to avoid tax. I just would find it easier to spend the small amount of cash I'm earning, rather than bank it and then withdraw it. I'm very happy to keep accurate records and pay my taxes.

00ec25 · 2 May 2018 at 7:26PM

there is no law that says you must bank earnings before you can spend them (on either business related or personal purchases).

if you have a decent manual system for record keeping then that will do. If you are subject to an HMRC enquiry they will be used to those who are still paid in cash and they won't require a bank account, but they will very critically examine your standard of living and your lifestyle to see if you are living within your means as shown by your income records....

the chances of you ever being subject to such an investigation are about as good as you winning the lottery, it happens to someone and when it happens you want to be on the winning side, not the losing side

Graham_the_Hog · 2 May 2018 at 9:56PM

@00ec25 that was a brilliantly clear and helpful answer. Thank you so much!

If the Revenue come knocking, I'll gladly show them my (relative) poverty and make them a cup of tea.

Self-employed without a bank account

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free