CASH AND ONLINE TRANSACTIONS

This discussion explores the tax implications for an online business owner who uses credit cards for purchases and takes cash from buyers to repay the card. The core concern is whether depositing over £10,000 in cash annually into a bank account could attract attention from the Income Tax department, even if income is below the exemption limit and an Income Tax Return (ITR) isn't filed. The advice given is to maintain meticulous records of all sales and purchases. If these transactions can be properly justified to the department, there's generally no need to file a return if income remains below the basic exemption limit.