The Consumer Credit Counselling Service (CCCS), a debt charity, says many self-employed people are struggling to get a clear picture of their business because they do not keep proper records of financial transactions.

Shane Lake, owner of online takeaway company Hungryhouse.co.uk, invested £40,000 of his personal savings into his business when it was launched and keeps several accounts. He says: ‘Not only do we have a current business account, but also one just for client payments, that way we know exactly what’s coming in and won’t spend money we don’t have.’

Geoff Waugh, manager at CCCS, says: ‘[We] regularly see people with debt problems who mix their business and personal finances. Many will take out loans and credit cards to support their businesses during tough times, which can make their situation worse.

For more information visit the CCCS’ website or phone: 0800 138 1111.