HairbyTor
Well-Known Member
Hi, I'm off into the scary world of self employed and going freelance. Do I need a business account or is a current account ok? What does everyone else use?
Thank you! There's so much to learn and I don't want to do it wrong by starting with the wrong bank account.Most business bank accounts attract charges so you could just use a savings account for now until you really need one. The most important thing in the early days is to keep accurate records of all your income and expenditure.
You do need to get one if you're doing this full time and seriously. Most banks give you the first years business banking free and you need it for tax purposes.
You'll have fun doing your tax return next year without it. I wouldn't want to try it!No, there is no legal or tax requirement compelling you to open a business bank account.
It can take a few years to get really established with a busy clientele and throwing money away on bank charges after the first year of operation, isn't necessarily a good idea.
You'll have fun doing your tax return next year without it. I wouldn't want to try it!
You'll have fun doing your tax return next year without it. I wouldn't want to try it!
Thank you, I will probably do this for the first year and see how it goes!A simple excel spreadsheet or even just a cash book helps chart income/expenses. You could even use an ordinary notebook - Income at the front, expenses at the back - I take 10 mins (if it even takes that long!) every Friday to update mine and use my personal bank account. Absolutely no problem when it comes to tax return time.
Enter your email address to join: