i have a self employed friend who I have been helping with her books.
She is a registered childminder with the local council and has about 4 different children a week. She gets paid manly cash but the odd cheque now and again which she banks.
Should she she have a separate bank account?
not that there would be anything in it cause she spends the money as soon as she gets it. She hasn't even paid last years NI bill dispite me telling her it needs paying.
Thanks
EJL
-- Edited by Eilef on Wednesday 10th of December 2014 10:54:53 AM
It would help for her to have a seperate account but it is not a legal requirement. (The bank however may get stroppy if they feel a real business is being run through a private account).
The downside to what she is doing is that in the event of an investigation she will have to explain all of the personal expenditure away that is cluttering up her statements so whether its a business account or a seperate personal account it is worth having words with the client that it should at least be a seperate account.
That she is behind with NI payments and has little (if any) control over her budgeting should be a sign to by all means keep her as a freind but to be wary of taking her on as a client.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
