Use of personal bank account

Question asked by Sean Harrison 8 years ago

Hello,

If the business is a sole trader and there are personal transactions going through the bank account, is it possible to mark these as personal in Clearbooks so that they are ignored but reconciliation can still take place?

Thanks, Sean

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2 Replies

Hi Sean - as you're probably aware, as the account has a mix of personal and business transactions, HMRC are able to investigate the entire account and ask for evidence all transactions, especially monies coming in, so it is worthwhile just explaining all the personal ins/outs as Drawings and perhaps make sure the owner keeps some evidence of all the personal ins.

Best answer
8 years ago

Hi Sean,

Unfortunately there is no such way to do this. You would still need to explain the transactions as normal and then transfer the balance to a personal bank account if they don't relate to the business.

8 years ago

Hi Sean - as you're probably aware, as the account has a mix of personal and business transactions, HMRC are able to investigate the entire account and ask for evidence all transactions, especially monies coming in, so it is worthwhile just explaining all the personal ins/outs as Drawings and perhaps make sure the owner keeps some evidence of all the personal ins.

Best answer
8 years ago

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