Mark McLaughlin warns that mixing business and private transactions through the same bank account can have some unfortunate consequences.
It may often be tempting for self-employed individuals to use their private bank accounts for business transactions, perhaps for reasons of convenience, or possibly to reduce bank charges.
However, even if the business owner meticulously identifies business transactions, difficulties invariably arise when using private bank accounts for business.
The dreaded ‘brown envelope’
For example, if HM Revenue and Customs (HMRC) opens an enquiry into the self-employed individual’s tax return, this will often be followed by a request for access to the business records, including statements for all bank and credit card accounts through which business transactions were made.
The question arises: is
