Can I use my personal account for my business income?
Unfortunately, using a personal account is not a simple alternative to opening a business account.
- Any funds that are paid directly into your personal account may be seen by HMRC as personal income and you will taxed accordingly.
- You need to keep clear records of all financial transactions for the business which possible on a personal account.
- Your accountant (us!) needs to see copies of your bank statements throughout the year so that we can "reconcile" each transaction. This becomes difficult if business funds are entering your personal account directly.
- You may be breaking a contract with your end client by asking them to pay into your personal account if they have engaged a contract with your business.
If you are having problems opening a business account then luckily there is an alternative simple solution outlined here.