Lodge Personal cheque into business Account?

J

jigsaw

Registered User
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Hey guys,

At the moment I have a few bank accounts:

N26 as my main account
Wise as my rental income account
EBS Money Manager as my business account

I will be receiving a cheque for 6 figures in about a week or two which is my own personal money and has no tax owed on it.

I requested the money as a bank transfer but this is not possible and I can't lodge the cheque into N26 or Wise as they don't have physical branches.

I was thinking of just lodging it into my EBS business bank account until the cheque clears and them moving it out of there.

Is there any reason why I shouldnt do this?

I could open another bank account but I really have no need for it and don't want the hassle.

What would you do?

Cheers lads
 
Will the cheque be crossed?

If not, you should be fine to endorse it (i.e. sign the back of it) and lodge it into your business account.

I’d do it in an EBS branch though (I assume they still exist?); just to avoid any mishaps given the amount involved.
 
I have both a savings account and a Money Manager account with the EBS. I top up my Money Manager account from my savings account as needs be.

You can usually lodge cheques payable to you to a business account but not the other way round. However why mix up personal money with business money. I would keep them separate.
 
I think the hassle of opening a new account anywhere far outweighs any downside of lodging the money into a business account and then withdrawing it.

I simply apply the Revenue Audit test; what would a Revenue auditor say if he or she saw that transaction and asked you to explain it?

Nothing is the answer.

If you’re really trying to see around corners, the only other real wrinkle would be if the business is in financial difficulty, which presumably isn’t the case. And even then, that’d probably be fine.
 
So real world example, I've lodged a personal cheque into a business account in the past, and other than having to include a note for the accountant in the accounts, nothing happened. In my case it was a pure mistake at the bank desk with the personal cheque ending up in the business account, and the business one in the personal account. There is always going to be allowances for things like that and for you case, once you can account for the source of the funds, I doubt that there would be more than a question if it ever came up.

Now if you started lodging 6 figure cheques and transferring them out every other week....
 
Thanks for the reply guys.

This cheque will be a one off.

I will ring EBS tomorrow and see if its possible to lodge a cheque to a money manager account.

Im hoping its possible as I dont want to open another account just to lodge 1 cheque.
 
IsleOfMan said:
I have both a savings account and a Money Manager account with the EBS. I top up my Money Manager account from my savings account as needs be.

You can usually lodge cheques payable to you to a business account but not the other way round. However why mix up personal money with business money. I would keep them separate.
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Are you sure its not possible to lodge a cheque into a personal money manager account?
 
Just wasnt sure if it was wise or frowned upon by revenue to lodge a personal cheque into a business accoount
 
jigsaw said:
Just wasnt sure if it was wise or frowned upon by revenue to lodge a personal cheque into a business accoount
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Not if it’s for a legitimate straightforward reason.

I remember someone telling me once that Revenue wouldn’t allow staff to be paid in cash. Literally…as in paid in physical cash, rather than “paid in cash”. They’re not demented gargoyles, they are pretty reasonable.
 
Gordon Gekko said:
Not if it’s for a legitimate straightforward reason.

I remember someone telling me once that Revenue wouldn’t allow staff to be paid in cash. Literally…as in paid in physical cash, rather than “paid in cash”.
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It's not all that long ago since the Payment of Wages Act required payment in cash unless the employee agreed in writing to an alternative method. The Act now lists cash as one of a number of lawful methods of payment along with cheque, draft, postal order and EFT to bank account.
 
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