There is a legal requirement to keep proper business records. No successful business can survive without proper records. I know many small businesses are hopeless at keeping records so my advice is to get a bookkeeper or ask your accountant for help.
The centre of all your record keeping should be your bank account. Now there is no legal requirement for a self employed person to run the business through a business account but I always strongly advise my clients to do so.
The reason is it is always best to seperate your business and personal affairs. HMRC can ask to see all the records from which you prepare your accounts and tax return. That means if you are using your personal account for business they will have access to you personal expenses and life style. They may well take the view that your business profits do not match your lifestyle.
So keep proper records and keep the business seperate.
The advice given in this blog is general and generic and you should always obtain professional advice on your
specific situation from an accountant.
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