Will I be penalised for not using a business bank account?

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I have just opened a new company, but I am operating it by myself, and don’t plan on having a lot of income pouring through it. So, I didn’t really want to bother setting up a business bank account. Will that be okay, or will I get penalised by the taxman for not keeping my business funds in a separate jar?

Answers

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No, you won’t be penalised for not setting up a business bank account for your new company. It’s not a legal requirement to have one so it’s entirely up to you whether you use your personal account or a dedicated business account.

I would always recommend setting up a bank account for a limited company because it makes it easier to do your bookkeeping, separate business transactions from personal income and expenditure, and work out your tax return at the end of the year.

However, if you don’t expect to have many transactions going through your company accounts, you will be okay with just your personal account. Just be sure to keep accurate records in case HMRC asks to inspect your books.

a year ago
 

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