Banking Cash when self employed

A question about : Banking Cash when self employed

As a self employed (HMRC registered) cleaner I get paid in cash for the majority of my cleaning work and have every month paid it in my business bank account in order that it corresponds with my cash book / receipts that I keep for HMRC. My question is: some months I could do with keeping the cash out so I can use it for personal shopping etc and ask if it is OK not to bank the cash but transfer the equivalent amount from my own personal bank account to the business account so it keeps the banking records straight? Would HMRC frown on this? It just seems silly to me banking cash that I could use and then at the same time drawing out cash from my own personal account?

Best answers:

• I would bank all your cash receipts so that you keep your business book keeping separate from your personal book keeping.
  I don't understand why you want you keep cash from your business & THEN transfer money from your personal to your business account.
  Why not just go to a cashpoint & draw your personal cash from your personal account ???
  To my mind you are making things very complicated !!
  HTH
• It's perfectly legal, but make sure you keep spotless records in case you get brought up on it in say 5 years time, so it'll be obvious what happened.
  I can also see the reasoning if you're paying 0.65% cash handling fee, may as well save a pound or two, and save a trip to the cashpoint toboot.
• Thank you both for your comments, I understand firefox1956 what you are saying and at the moment this is what I am doing. I just thought it would save me some extra time and a trip to the bank to do what I could via online banking as long as I keep all bank records etc for HMRC in case of any future inspection. Thanks paddyrg for advising that it is legal to do this. My record keeping is probably a bit over the top TBH and I am making sure all receipts, paying in receipts, cash book etc are all cross referenced.
• Para, if you're a Sole Trader then your money is your money, and it doesn't matter where it goes, as long as it is all included as income on your tax return. Whilst it is more transparent to have seperate business and personal accounts (and never the 2 shall mix!) and would make a tax inspection easier it isn't essential.
  Any cash i earn in a month is used towards my credit card bill, so that I don't have to pay a 0.9% fee for paying it in.
• Thanks HHarry, I appreciate your reply. This is my first year as a self employed earner and so I just want to make sure I am doing things right. Guess it is a confidence thing & knowing what can be done without raising eyebrows at HMRC !!!