Self employed-account help?

[charlene1983]

Hi
I was wondering if I need a business account to be self employed. I know most charge to use them I used to have a salon a few years ago. But I'm recently starting back up on a smaller sale and wanted to know. X

 

[souz]

yes you need a business account otherwise its too confusing to separate whats personal and whats business when you come to doing your accounts and self assessment. all the banks do great deals now, i managed to get 2 years free banking and lots of help included x

 

[Kim Lawless]

You don't 'need' one but you'll get yourself in an right old mess if you don't have one. Santander do free business accounts. It makes it much easier when you or your accountant do your accounts.

 

[Tommo]

Hi ladies, do you think it needs to specifically be a business account or could you open up another current account to keep things separate? This is what I did but I have wondered whether it is best to have a business account - but wasn't sure on the difference!

 

[charlene1983]

That's what I was thinking- opening a second current account to keep things seperate. I think it put me off when I had my business account as it was not free and I literally got charged for everything to do with it.
I was lazy and last time I was in business I let me dad do a lot of my book keeping stuff. But this time I'm determined to do it all on my own since I'm a big girl now haha!
Thank you all for your help! Going to look at deals now for business banks

 

[gjg1]

At first I had just a separate current account but then had to get a business account as it got a bit confusing. I also went on to get a pdq machine and couldnt have one without the business account. I got 2 years free and ive been really happy I did it x

Sent from my GT-I9300 using SalonGeek

 

[nicolaluise]

I use a separate currant account and I have a switch machine that pays into it, my credit score was shocking so couldn't get a business account at the time, I have never been asked to change it x

 

[Littlegems1]

Hi sorry to hijack the thread but can I ask you geeks something instead of starting a new thread.
I'm going to start self employment in a few months and am confused😱

Basically I will only be accepting cash to start off with. I will be declaring all my incomings but do I need to put it all in the bank to declare it?
I was planning to put the cost of service/ travel etc in the bank to cover ordering/insurance etc and keeping the rest as my wage, and declaring it all on a receipt book/ incomings on an account book

Would that work or do I have to put it all in the bank and "Withdrawer" a wage?

Any advice would be appreciated and hope I made sense xxx

 

[kimi1101]

In my opinion I would pay it all in, even if you instantly withdraw your "wage" part of it. So if you made £500 Monday-Friday, the following Monday I'd go to the bank, pay in the £500 and then withdraw £200 or transfer this to your personal bank account. It's called a paper trail, so that everything tallies up for the tax man. Especially if you are only dealing in cash.

 

[chazz!!]

I just u my personal account and and I have a pdq machine as well it wasn't a problem, I just sumit what the salon took and what I spent. Keep it very simple. X been going 4 years like this but if you have staff then you'll want a separate account Santander are free business banking for life but u get nothing but the bank account x x

 

[Littlegems1]

That's great thanks for your help

 

[lynn amber]

As far as im aware as a sole trader you do not legally need a business account and you also do not need to do a bank reconciliation :-D

Sent from my LT30p using SalonGeek

 

[squidgernetball]

Hi sorry to hijack the thread but can I ask you geeks something instead of starting a new thread.
I'm going to start self employment in a few months and am confused😱

Basically I will only be accepting cash to start off with. I will be declaring all my incomings but do I need to put it all in the bank to declare it?
I was planning to put the cost of service/ travel etc in the bank to cover ordering/insurance etc and keeping the rest as my wage, and declaring it all on a receipt book/ incomings on an account book

Would that work or do I have to put it all in the bank and "Withdrawer" a wage?

Any advice would be appreciated and hope I made sense xxx

If you are a sole trader - working on your own - you don't need to pay anything in anywhere. All the money you earn is yours - at the end of the year, you declare your takings - for example £12000, write down all your outgoings - say £4000 and pay tax on whats left - £8000 (Don't think that would qualify for tax lol). The self assessment form does it all for you, and you can declare low earnings and avoid paying certain contributions. Keep receipts for everything work related, whether you pay cash/cheque etc. It really is quite simple, if you keep on top of it. The tax office are really helpful and you can ask lots of questions without giving them much info!!!

 

[sanilulu]

No need for a business acc - I have 2 accounts - 1 x I use for my business, 1 for my personal use, phone, - ie mortgage house bills etc.

 

[Fifibugz]

I also have 2 current accounts and just keep them separate between personal and business.

 

[Steph86]

My bank manager wasn't happy i'd used my personal account before setting up a business account...it was suppose to be free for 12 months, and 18 months later I still haven't been charged. That said, when I do Ill be switching to another bank. Xx

 

[kimi1101]

Your bank manager wouldn't have been happy because they can squeeze money out you for a business account - if you are a sole trader then you can use a personal account. I would recommend using a seperate one for work. I see others have said you don't need to pay in etc, but honestly I think this will make things really messy if you get investigated etc. I just find things much tidier if you do it through your account.

 

[tamara jayne]

Hiya, a bit of help please, I currently have a diary where by I write in all the monies in and monies out and then put all receipts in at the end of each month, I'm not really earning very much at the mi, is there an easier way of recording this info? X

 

[tobl55]

Which bit do you find hard about writing down your ins and outs on a daily basis? I don't think it gets much easier than that xx

 

[Suzy c]

You don't need a business account, just makes life easier