An individual entrepreneur accidentally received money into a personal account: what actions will save from fines
An individual entrepreneur who received payment for services on a personal bank card cannot limit themselves to just including these funds in income and paying the single tax. Using a personal account for entrepreneurial transactions may create additional tax risks.
According to subparagraph 1 of paragraph 292.1 of article 292 of the Tax Code of Ukraine, the income of a single tax payer — an individual entrepreneur — is the income received during the tax period in monetary form, regardless of whether the funds were received in cash or non-cash.
That is, if the funds were received as payment for goods, works, or services related to entrepreneurial activity, the individual entrepreneur must include them in income and reflect them according to accounting rules.
At the same time, entrepreneurial transactions must be conducted through an account opened for business activities. The procedure for using accounts is regulated by the Instruction on the procedure for opening and closing accounts for users by payment service providers servicing accounts, approved by the National Bank of Ukraine resolution dated July 29, 2022, No. 162.
If payment for services was accidentally transferred to a personal card, the entrepreneur must confirm that these funds are indeed of entrepreneurial origin. For this, it is important to have documents confirming the provision of services and the purpose of the payment.
In addition to including the funds in the entrepreneur’s income, it is recommended to:
- record the receipt of funds as income from entrepreneurial activity;
- transfer the funds to the entrepreneurial account;
- keep confirmation from the client that the payment was for the entrepreneur’s services.
If the connection of the funds with business activity is not confirmed, the tax authority may have grounds to consider such receipts as personal income rather than entrepreneurial income. In this case, taxation may apply according to the rules for personal income — personal income tax of 18% and military levy of 5%.
As previously written by the "Judicial and Legal Newspaper", the State Tax Service registers a single tax payer by entering a record into a special register. It is maintained by the central executive authority implementing tax policy.
In some cases, particularly for newly established individual entrepreneurs, special deadlines for acquiring the status of a single tax payer are provided. Thus, entrepreneurs who submitted an application by the end of the month of state registration and chose the first or second group are recognized as single tax payers from the first day of the following month.
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