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One bank account for private and business purposes and tax deductible expenses

Entrepreneurs running a business in order to make payments for liabilities to contractors or offices open bank accounts. However, is it necessary? Can I use one bank account for private and business purposes? We answer below.

Obligation to have a separate bank account for business

Tax regulations do not regulate the issue of having a company bank account by entrepreneurs. Therefore, the entrepreneur is not obliged to open a bank account intended solely for the purposes related to the conducted business activity. Nevertheless, the taxpayer has the right to set up such a company account.
After its installation, it should be reported to the office on the CEIDG-1 form. Detailed information on filling in the CEIDG-1 form can be found in the article: CEIDG-1 form with an overview - data update.

One bank account for private and business purposes

Since tax regulations do not require entrepreneurs to set up separate accounts for business, this means that entrepreneurs can use private bank accounts to make payments to contractors, and even to pay taxes or social security contributions. However, is one bank account for private and business purposes a good solution? We discuss a few things below.

The expenses of maintaining a bank account in tax costs

An entrepreneur who has a company bank account can include expenses related to its keeping, making transfers, etc. in company costs. The proof on the basis of which the taxpayer makes the booking is the internal document (DW) issued by him. It should be remembered that it is necessary to attach a document confirming incurring the expense under the DW - in the case of bank fees, a bank statement will be appropriate.

Example 1.

Ms Marianna runs a sole proprietorship and incurs expenses related to running a company bank account. Can these expenses be booked in company costs? On the basis of what document should this posting be made?

Expenses related to maintaining a business bank account may constitute a tax deductible expense. Posting of expenditure should be made on the basis of internal proof. Mrs. Marianna should attach a bank statement with visible bank fees to the generated ID.

Internal proof, on the basis of which the taxpayer will post the expenditure, can be generated in the wFirma.pl system using the tab: EXPENSES »ACCOUNTING» ADD »INTERNAL EVIDENCE, where in the window that appears, complete the date of issuing the document, the amount and information about the generated document. Additionally, in the field ACCOUNTING SCHEME, select the option COSTS OF BUSINESS ACTIVITY and save.

After saving, the entry will be included in the KPIR in column 13 - other expenses. A taxpayer who uses a private business account for business purposes cannot charge the full amount of the account maintenance fees. Only fees for transfers made as part of the business may be a cost. However, the entrepreneur must remember that in the event of a possible tax audit, he is obliged to prove the legitimacy of the cost.

Company account and white list of taxpayers

The entrepreneur is not obliged to open a company bank account.Nevertheless, in order to fulfill the obligations arising from the provisions on the white list of VAT taxpayers in force from January 2020, the taxpayer may be forced to set up such an account. Pursuant to Art. 22p paragraph. 1 of the Personal Income Tax Act, entrepreneurs are required to make payments for invoices whose value is at least PLN 15,000 to the taxpayer's bank account on the white list.

Only corporate bank accounts are on the white list. However, there are no private accounts there. Therefore, in order for a bank account to be on the white list, it must be a company account set up specifically for the purposes of business activity and reported to CEIDG. When making a purchase, the contractor may therefore require the indication of the account number included in the white list of VAT taxpayers in order to make the payment for the invoice. Payment for the invoice in the amount of min. PLN 15,000 made to the bank account of a taxpayer that is not on the white list will result in the expense not being able to constitute a tax deductible cost for the buyer. Entrepreneurs will therefore be much more likely to verify company accounts. In summary, one bank account for private and business purposes is not prohibited from the point of view of tax regulations, however, it may turn out that in order to maintain cooperation with existing partners or start a new cooperation, it will be necessary to set up a company account, which will be visible on the white list VAT taxpayers.

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Bank account in the wFirma.pl system

In the wFirma.pl system, you can easily add information about bank accounts. Thanks to this, the selected bank account number will be displayed on the issued sales invoices.

To add a bank account number in the system, use the tab: SETTINGS »BASIC DATA» IDENTIFICATION DATA. In the window that appears, go to the BANK ACCOUNTS tab, and then use the ADD ACCOUNT option.

After saving the business invoice, it will be possible to include it when issuing the invoice. For this purpose, in the tab REVENUE »SALES» EXHIBITION »INVOICE, in the window that appears, in the ADVANCED tab, in the BANK ACCOUNT field, select the newly added one.