LOng post - where I'm at - in case it helps others:
Since being alerted to the banking problem last year, this is constantly in the back of my mind- as a worry
So far, I have still just stuck with my personal bank account - it is the only one I have and is with ***Nationwide***
Nationwide doesn't have cash limits - so far.
They also do have lots of branches, so it is easy to pay cash in.
After seeing these threads, though, I cut down on how much cash I pay in, and over the last year, I have paid in less than £25k.
I have circumvented this by giving some of my cash to friends — very trusted friends—who paid the cash into their own accounts and then transferred it to me.
It is crazy that we have to do this!!!!
In my favour - I've had the same bank account for 20 years and a direct debit to HMRC for my tax.
I can explain with proof that I'm a sole trader registered with HMRC.
Other tips to reduce cash banking:
* I contacted my council about paying council tax in cash! They issued me with a cash card and I can pay it directly in the postoffice - very handy that's over £1,000 per year.
* I suspect other utility companies can offer this but they probably don't advertise it because they want us to have direct debits which are cheaper/easier for them.
* I was impressed by the suggestion in another thread to buy amazon card and netflix cards at the supermarket and pay for things that way rather than connect them to our debit cards - this is a simple genius idea that I hadn't thought of!
* Of course, groceries & fuel get bought in cash, but not many businesses want to take cash these days.
I will say it is really annoying to have to limit our cash in the bank in these ways.
Opening multiple bank accounts as an option:
* Credit file fears - I am two months behind on a loan payment and have been this behind for about a year, which I know will show on my credit file. This has made me scared of trying to open a second bank account while I appear to be financially struggling.
* I should be back on top within the next 3-4 months. When my credit record looks better, later this year, I will think about opening a business bank account And other personal accounts.
It's not just about me—many of you might also be worried about bad credit histories, such as CCJs or Bankruptcy.
Apparently - government rules say we are all guaranteed to be allowed to bank with the main banks - and yet we might have problems paying our cash in??? It makes no sense - unless, in fact, those banks will accept our cash if they know where it comes from/ can see we pay our income tax.
Arousing suspicion: For some of you --- I wonder if it is not just the problem of cash paid in but what some people might be paying out - if you have a lot of transactions that look like business expenses rather than the normal transactions of life - advertising costs, hotel bills, taxes, sex shop order!!!!?
Self-employment - THIS IS WHAT I Do - I am a (masseuse) therapist (and I have another consultancy business as a sole trader- I work both of the 2 businesses part time - the business expenses of my other business are all done through Paypal so I don't need a business account - it is purely my income that gets paid into my bank account)
What I am thinking about doing - I am thinking of making my other non-sex-work business into a limited company and getting a limited company bank account for that so that I will have the option to pay in some cash there - obviously there are high charges related to paying in cash into a business account (perhaps £100 for £10k) and ongoing monthly charges just to have the account. But it may well be worth it for peace of mind.
You (general YOU - people needing this thread) might find these links useful:
https://www.moneysavingexpert.com/banking/business-bank-account/
https://forums.moneysavingexpert.com/discussion/6101941/do-i-need-a-business-bank-account?_gl=1*
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