Separate business & personal finances

Do all you can to keep personal and business finances separate. This is especially important if your business is cash based as HMRC will look closely at your affairs to discover if you’ve been syphoning off cash from sales directly into your pocket.
Ideally you should have a separate bank account for your business but if you have a low number of transactions this needn’t be a business account as defined by the bank as these have fairly hefty service charges. Initially just use a personal bank account but for business transactions only until the bank forces you to subscribe to one of their business accounts then shop around for the best deal.

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