The good news is that there's no law that limits how much cash you can pay into your business account. The catch is that your bank can set its own limits, and they're often lower than you'd expect.

If you take a lot of cash, that can be a real headache. Here's how the limits work and what you can do about them.

What's a cash deposit limit?

A cash deposit limit is the most cash you can pay into your account in a specific timeframe. Your bank sets it, and it can change depending on what type of account you have and how you pay the cash in.

Why do banks set limits?

Banks have to watch out for fraud and money laundering. Limiting large cash deposits help prevent this sort of financial crime.

How much can you pay in?

It varies a lot from bank to bank. Many daily limits sit somewhere between a few thousand pounds and around ten grand. Some banks also set a monthly or yearly total, and a few set a different limit for each business, based on its type and turnover.

Three things change how much you can pay in.

• Where you pay in. A branch counter often allows more than a machine.

• Your account. Business and personal accounts have different limits.

• Your bank. Each one sets its own rules and can change them.

Because limits change, check your bank's website or ask them for your current figures. Don't rely on an old article or a number you've heard on the grapevine.

Paying in cash at the Post Office

Many business accounts let you pay in cash at the Post Office. But there's a catch if you're already feeling confused - the Post Office has its own limits on top of your bank's. Some banks charge a fee on each deposit, and some online banks charge a percentage on larger amounts, so check the cost before you go ahead.

Banking hubs are another option. These are shared spaces in some towns where staff can help customers of several banks, including with cash. They're becoming more common now that physical bank branches are fewer.

If you take lots of cash

A bit of planning saves a lot of stress.

• Talk to your bank early and explain how your business works.

• Pay cash in often, rather than saving it up for one big deposit.

• Keep clear records, such as till reports and sales logs.

• Warn your bank before busy times, like the run-up to Christmas.

• Ask about a cash collection service, where a security firm takes your cash to the bank.

Be open with your bank about why you're paying in what you are. Splitting deposits up to dodge a limit can look suspicious, even if everything's above board.

Cash and the law

You can pay in as much cash as you like, but banks have the right to ask where it came from. Keep your records tidy and you'll find these conversations are short and painless.

One important thing to be aware of if you sell goods. If a customer pays you 10,000 euros (or the equivalent in pounds) or more in cash, in one go or in linked payments, you need to register with HMRC as a high-value dealer.

Taking less cash

If limits are making life hard, nudge customers towards cards. A simple card machine and contactless payments make it easy. Card payments come with fees, but cash has costs too, such as deposit fees, security and the time it takes to count it and get it to the bank. It's worth doing the sums and making sure the way you take payments is working for you.