Bank account

[dragonfly]

Hi

I'm just starting off in business and I need to open a business account, can anyone recommend someone? A few banks at the moment are offering free banking for so many months etc.

I'd appreciate any advice you can give me

Thanks
Ang
x

 

[Lynne Baker]

Co-op offers free banking if you are an FSB member.

 

[jes]

Apparently the Halifax don't do business accounts. However I've heard, but I don't know if it's true or not, that they'll sometimes let small businesses and sole traders open and use a personal account as a business one.

I guess it would help to already have an account with them, but it wouldn't hurt to call in and ask .... just don't quote me on anything!

Jes

 

[Beatrice]

The abbey offers free business banking forever I've heard, I having a look next week as I am also starting up a new business. Good luck

 

[emerald]

I had a business account with abbey but really wasnt impressed with it, or the service despite it being free forever. I have just opened an account with Barclays, they can give you upto 2 years free and they have been really helpful so far and have sent me out helpful information whilst it is in the process of opening.

 

[Beautyw]

Hi
Just wondering do you need a business bank account? I use my account that i have as all my bills are coming out of it so it would be pointless to put my profit into one account for it to be moved to another one a couple of days later.
Posted via Mobile Device

 

[jes]

Hi
Just wondering do you need a business bank account? I use my account that i have as all my bills are coming out of it so it would be pointless to put my profit into one account for it to be moved to another one a couple of days later.
Posted via Mobile Device

This is a very bad idea. One of the golden rules of running a business is to keep business transactions separate from personal ones. You'll have great problems explaining and accounting for all your personal transactions in the event of a investigation by the Inland Revenue

Jes

 

[leonnib]

i havent got a business account yet but use a seperate personal one for business that i dont use for anything else...

but i dont think its ideal long term but if use a personal one i would definetely seperate it for your day to day personal account..

 

[Beautyw]

does the account have to be a business one? or can you just open a personal bank account?

jes....what way would you explain about bills? i mean i have my car and insurance coming out of my account every month, does the accountant or whoever need to see that account as well so i can prove where that money is going to?

thanks
xxxx

 

[jes]

jes....what way would you explain about bills? i mean i have my car and insurance coming out of my account every month, does the accountant or whoever need to see that account as well so i can prove where that money is going to?

Hi, The reason for not using a personal account for business is because you have to, if asked, show all your bank statements used for your business affairs to an accountant or the tax man.

If your using your personal account the tax man would look at all the deposits and withdrawals and you'll have to account for them. I.E. if you get something like child benefit deposited onto that account you might end up paying tax on it:irked:

A business account is the best option and most professional way to go. There are charges but they really aren't that much.

HTH
jes

 

[Beautyw]

Jes thank you so much, i didn't even know this. I will change first thing on monday. Does it have to be a business account or can i just open another personal account?
Posted via Mobile Device

 

[jes]

Yes you could open an new personal account and use it solely for business, but if there's too many transactions going on and the bank realize their loosing money, then they'll probably insist you take out a business account

Benefits of having a business account are that it will have your business/trading name on it and it will an account where you can have the takings from pdq machine (if you have or want one) deposited

Personally, the only time I would consider using a personal account for business would be if;

1. I was a sole trader, just starting out, with a small turnover
2. Had the banks permission to use a personal account for business (as I mentioned my first post

HTH
Jes

 

[melissashaw]

HSBC were good for me (but my free banking ended after 18 months). Def go for business account. Also heard good things about coop.

 

[leonnib]

if your just starting out maybe it give it a few weeks as ive just opened up my salon today il will wait a few weeks and get one... but i use my personal account just for business.. but when your starting to pay alot in etc its best to get a proper one..

 

[emily22]

Hi, i just opened an account with the Abbey as they offer free bz banking for life - there are limits on transactions where you will be charged if you exceed them but depending on what your doing and how much you're bringing in at the start its a good place to start with..

 

[Susie H]

Having in the past had business accounts with Abby, Lloyds and Nat West I would recomend Nat west while your business is small, they give you a personal manager and I found them to very helpful, however once our business grew to the point of stepping up a level, I found that Lloyds were a better option.
What I'm trying to say is, go see three or four of them, see what they offer, who you get a good feel from and then make your choice, but don't be frightened of reviewing that choice further down the line, as your business develops you might find that your original choice no longer suits you:hug:
By the way for now I have an on line account with a visa debit card, I can pay money in at the post office and everything I do is done with the one card, neat and tidy, I can store my statements on my computer and transfer the information straight onto my on line self assessment form. No paper to store and for me loose. But I am not a newbie to being self employed and would always suggest having a free business manager on hand for your questions if you are.

 

[dragonfly]

Thank you all so much for your comments, gonna do some shopping around next week!

Thanks again

Ang
xx