Did you open a business bank account when you first started out?

[MrsR]

Just wondering if I need to open a business bank account, I start my training at the end of this month and plan to go mobile and have a home treatment room - the mobile part will start straight away, the treatment room a little longer - and I've been wondering about money made while training and when I first am offially qualificed - do I need a business bank account or can I do it through my own bank account as I am only small, just starting out and part time (for now)?

 

[sodabubble]

Just wondering if I need to open a business bank account, I start my training at the end of this month and plan to go mobile and have a home treatment room - the mobile part will start straight away, the treatment room a little longer - and I've been wondering about money made while training and when I first am offially qualificed - do I need a business bank account or can I do it through my own bank account as I am only small, just starting out and part time (for now)?

I just use my personal account. I plan on keeping money in it to save for my tax bill and NICs. Have you contacted business link hun? I got a lovely man who comes out to see me for free and he gives me advice on all things business - marketing, funding, tax, banking, everything, give them a call you wont regret it! x

 

[tonilee]

You dont HAVE to have one.....I have been going since 2006 and am only just opening one now, but I will say is I wish I did it ages ago!!

It just keeps everything seperate, so you know what you have earnt and what you have spent out for your business. You can always get internet or phone banking and tranfer into your main account regulalrly, but putting it through a business account makes it easier to evaluate and see what s going in and out from yor business and not from other sources.

Just my opinion, I dont have the best head for maths so and explaining it purely from my own experience, I used to have to go through my diary to see what I had earnt!! And then my receipt book to see what I had spent!! It was ridiculously unorganised!!! I wouldnt wish that sort of muddle on anyone!!!!!

HTH chuck

:hug::hug::hug:

 

[Terese]

Agree with Toni.

for me a buisneess account looks professional,(please geeks dont shoot me down for the comment, its a general one!!!) makes life easier with cash flow in/out,if you wish to purchase bigger items for the buisness they can see your are serious...should you get into difficulties you have a personal buisness bank manager, there are a few threads on here.....I asked on here before opening one , I dont regret it........there are some good deals about...do your research and go with what is right for your buisness:Grope:

 

[MrsR]

I just use my personal account. I plan on keeping money in it to save for my tax bill and NICs. Have you contacted business link hun? I got a lovely man who comes out to see me for free and he gives me advice on all things business - marketing, funding, tax, banking, everything, give them a call you wont regret it! x

I have booked for this afternoon a first phone call, just waiting for them to call.

 

[MrsR]

Thanks everyone for your replies, I guess opening a simple account would even be an idea wouldn't it as my business money wouldn't be sucked up by normal everyday living.

 

[Terese]

I think this has been mentioned before as well...in small print of personal account buisness use is not allowed....again I think its on a thread

 

[MrsR]

I think this has been mentioned before as well...in small print of personal account buisness use is not allowed....again I think its on a thread

Ahh thanks for that

 

[g5m_sh]

I didn have one till last week!

I have gone with Abbey - free biz banking for life! x

 

[MrsR]

Been having a look at the Abbey and its free banking - thanks guys for the heads up on that - looks good x

 

[Cathie!]

Alliance & Leicester Commercial is also free banking and you can pay in cash at any Post Office with instantly cleared funds which is one reason why I switched over to A&L from Abbey......no faffing about at ATMs and waiting for cash to clear.

 

[MrsR]

Alliance & Leicester Commercial is also free banking and you can pay in cash at any Post Office with instantly cleared funds which is one reason why I switched over to A&L from Abbey......no faffing about at ATMs and waiting for cash to clear.

Interesting to know thanks x

 

[skymark]

Always good to start as you mean to go on, a business bank account will get you started off in the right direction.

Although, I would wait until you had done your training for now, as there is so much to absorb with that, it will be your priority and will take a lot more of your time and effort than you would expect.

One advantage would be though at this point if you don't have anywhere to park the start up money for your mobile business, you could keep it in a business account so that you don't spend it by accident and you can keep an eye on what your budget will be when you start your business.

 

[Sassy Hassy]

I was going to say be careful as you can get stung for very high bank charges with Business Banking so shop around. My personal banker said to me to pay stuff into my personal account and then transfer it into my business account on the internet as it was free. I just thought how bloody idiotic is that?!

 

[Karren]

i was using a separate current account with no problems, actually my accountant advised me that was ok

i have been looking into getting a business account because i am setting up a credit card terminal and that is the requirement.

Alliance and leicester offer FREE business banking - however if you pay in less than £1000 per month there is a £5.00 charge (that was as of about a month or so ago)

Abbey national's offer of FREE business banking really is FREE

just watch the small print and double check with whomever you go with - interesting point re clearance of funds cathie thanks

kx

Alliance & Leicester Commercial is also free banking and you can pay in cash at any Post Office with instantly cleared funds which is one reason why I switched over to A&L from Abbey......no faffing about at ATMs and waiting for cash to clear.

 

[Cathie!]

i was using a separate current account with no problems, actually my accountant advised me that was ok

i have been looking into getting a business account because i am setting up a credit card terminal and that is the requirement.

Alliance and leicester offer FREE business banking - however if you pay in less than £1000 per month there is a £5.00 charge (that was as of about a month or so ago)

Abbey national's offer of FREE business banking really is FREE

just watch the small print and double check with whomever you go with - interesting point re clearance of funds cathie thanks

kx

Haven't come across that so far but I'll check out my literature....thanks for the heads up!

I did get a much better deal with my Merchant account with A&L, although you do need to put through £20 of transactions or you pay the difference....which on an average month isn't an issue for me.....

I guess it depends on the size of your business and what is best for you.....

Abbey and A&L and also possibly Halifax are the only ones who offer free banking forever....the usual High Street banks tend to offer 6 or 12 months free and then pile on the charges.

 

[MrsR]

Thank you for everyones feedback on this - very helpful x

 

[Minipig007]

I opened my Abbey account in January, and so far have had nothing but problems. The abbey account is what they call "self managed" - that seems to mean that if anything goes wrong, it is not part of their service to correct it. For e.g. one of their atms registered a deposit on to my account in error and then deducted it, so it looks like a cash deposit and withdrawal, but as i never made this transaction it's mucking my accounts up. It's apparently not part of their service to either a) remove the transactions, b) amend the narrative on the transactions to atm error, or c) send me a letter confirming their error. they state that if the HMRC contact them, they may confirm it to them, but not to me. This is just one of 3 complaints I have had with them since January.

My advice is to be completely ready for a non-supportive bank if you use abbey. I used to work for them and i really should have known better than to give them the benefit of the doubt... they're just as bad as i already knew they were!!

sorry guys... rant over...!!!

 

[hippy-chick]

just get 2 current accounts, one for personal, one for biz.

I have a post office account that I have a standing order that goes in every month to pay for my tax bill. If I don't have any tax to pay, I transfer it to my ISA.

 

[laalot]

I think its handy to have a seperate account for your business be it a personal account or a business account as I find it easier if I want to check a past transaction I'm not sifting through masses of statements trying to pick it out between the tesco and petrol entries!

I thought my 2 years free biz banking with natwest was good but I can't believe you can get lifetime free banking with abbey and a&l it sounds like a fantastic offer! I really should learn to shop around more!

Hope you find something that suits you hun! xx