Using Cash Fraud??

[itsmefolks]

I have a business account and a personal account. I pay card transactions into the business account and cash into the personal account to avoid bank charges. I then transfer the cash across from the personal account to the business account. I have been told by the bank that I am commiting fraud!! Why is this when my accoutant says it is ok to do this as long as everything is declared, which of course it is. Many thanks anyone in advance.

[JaneDoe2]

if your bank is charging you to credit your business account with cash then I strongly suggest you change banks. Of course you are not committing fraud but why on earth are you declaring cash!!!!!!!

[New Judge]

Methinks the bank is trying to scare you into paying the cash into the business account (thus reaping them what are no doubt extortionate charges).

However it is only a guess as this is not something I have much knowledge of.

[Barmaid]

Bank is talking utter nonsense. As long as you declare it all that is fine. It does not matter WHERE you pay the money as long as it is all properly accounted for and taxed.

[ummmm]

You are using your personal account for business transactions which I assume is against the banks rules.

The bank make money from bank charges, you are avoiding those charges.

[adrianben]

Why do you pay the cash in ? Just keep it in your pocket.

[Barmaid]

But that is nothing more than breach of contract ummmm (if anything) and then only if the bank says "you cannot pay business funds into your personal account". I've got a business account and a personal account and I'm always swapping round between the two (largely because some people still pay into my personal account which was my sole account until I had a business account and i've never got round to telling them). If my bank told me I was committing fraud, I'd tell them to sling their hook.

[ummmm]

What about balancing the books?

[ummmm]

That was to Adrian.

[Barmaid]

As long as it is all accounted for there should be no problem. My books always balance at the year end (although lord knows how given my chaotic book keeping).

[Barmaid]

lol, sorry ummmm, I thought you meant me. However, I think my accountant does despair.

[itsmefolks]

Every single penny is accounted for every day of the week. We keep utter and complete records of every single sale and transaction. The bank, Lloyds TSB are going to get a letter to say they may be liable for slander saying we are running a business fraudiently.

[Barmaid]

It's not slander because they only told you. It's not something they've said to the world at large or anyone else. Anyone can accuse anyone of anything to their face privately and there is no legal comeback.

[itsmefolks]

Paying these people our hard earned money to play with and then give us wrong information is typical of the failings in the system that is supposed to be the backbone of our running!! For gods sake men in suits men up and learn your job.
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[factor-fiction]

They may have concerns about money laundering but I don't know enough about it to know whether what you are doing really would be classed as money laundering, although I doubt the authorities would be interested.

[Barmaid]

I think their bigger concerns were as NJ pointed out. But call me cynical. ;)

[JaneDoe2]

//Paying these people our hard earned money to play with and then give us wrong information is typical of the failings in the system that is supposed to be the backbone of our running!//

Is this Google translate cos its certainly not English?

As for your cash, well congrats because you are the very first self-employed person I have ever met that banks all of their cash. You have no need to bank your cash as you can still put your cash payments down in your Output accounts and use the cash to pay Inputs or yourself wages. You are not obliged by law to bank your cash .

[rojash]

^^ she's right, y'know.

[JaneDoe2]

the OP says they bank with Lloyds but we have an account with them and they don't charge for cash deposits
@methyl a while back I deposited over £5000 cash into our business acc. I don't normally bank cash but that was too much to keep around the office -I got the usual questions 'oh! sold your car? Instead of saying mind your own business I said 'no just the usual drugs deal' just got a funny look.....