Starting up - Bank account - The Book-keepers Forum (UK)

ProBowlUK · Senior Member

Starting up - Bank account

ADAS · Guru

Hi Bob,

I'd open a seperate business account, it will make your own bookkeeping much easier. There'll be no problem then opening the account RJ Sharp t/a Needlesharp.

I'm no banking expert but banks often offer free banking for new business customers

hth.

Jymlyn · Senior Member

Hi Bob

Most banks offer 1 year free banking when opening a business account. Just opened mine with my bank and it was all done online, cheque book and debit card arrived within 3 days! Kind regards Lynda

Amanda · Expert

Hi,

NAtwest offered 2 years Free Banking when I took out mine, I am just about to change again as they charge me now £10 managing fee for doing absolutely nothing, I only have a couple of D/D and 1 S/O and a few payments in per month by BACS, and I now feel I am getting ripped off!!!!
Regardless of what little activity there is in my account they have a minimum charge per month. So make sure you get a business account which offers you a long period of FREE banking.

cheers
A

-- Edited by Amanda on Wednesday 20th of October 2010 12:02:49 PM

BudgetB · Guru

I use Santander. Free banking forever! The only disadvantage (not that I've personally found it to be a problem) is that you can't speak to the counter staff in the branches, you have to phone Business Banking if you have a problem and use the cash machines to pay in any chqs/csh.

BackOfficeGroup · Guru

Jenny

Are you saying you cannot pay your chqs in over the counter?? Scandulous. I wouldnt accept any charges if thats the case, so lucky they don't charge any.

In answer to the query, a business bank account is a must, as you should keep personal and business expense seperate - isn't that what we tell out clients!! Practice what you preach.

P

BudgetB · Guru

No I can't, not even allowed to speak to counter staff! That's why it's free. That said I have managed to get a few past them sometimes, seems to depend on whether the staff member notices it's a business account!

RuthA · Senior Member

I'm with Santander as well and pay in using the machine, I wouldn't want to wait to use the counter so it's not a problem for me!

Going back to the original post, a personal account is just that, an account in the name of a person (and that person's ID needs to be verified by passport, driving license or whatever). So by definition, no, you can't open a personal account in the name of something that isn't a person's name.

Quentin Pain · Senior Member

The Coop has been offering free banking for businesses for years. The truth is, you do not need a business bank account! Everything can be treated as 'cash' for your own books, but the revenue may have few questions if you ever get a visit!

BackOfficeGroup · Guru

Quentin

I firmly believe that if you are in business, you should treat your personal income and business income seperately, as it makes life so much easier and gets your mind focused on your business. Even if you just have a 2nd personal account, it makes sense.

P

Scrat · Veteran Member

Hi Phil/Quentin,

I did the books for my wife's piano teaching business for 14 years, income went through our joint bank account and costs (not many entries) through the bank and sometimes our credit card accounts.
I never had a problem reconciling it all and kept copy statements highlighting business transactions. She was never visited by the tax man, though, so don't know what he would have said.
Now I'm starting up my own bookkeeping business, because I expect t/o to be very low initially, I intend using my personal bank account for now (all the pre-startup costs have gone via my own bank account and several credit card accounts anyway).
Once things get going, and accounting volume starts to become significant, I think I may then do as you suggest Phil.

Phil

kjmcculloch · Guru

It's just worth remembering that with most, if not all, personal current accounts it's against their terms and conditions to use them for business use. As we advise our clients to keep business separate from personal isn't it just good practise that we do the same?

As has already been said, some offer free banking periods, some for life.

Kris

Scrat · Veteran Member

Yes, you are correct in what you say Kris.
However, having worked for a high street bank for many years, I know that it is a common practice amongst sole traders and begrudgingly tollerated by banks.
Whether things have changed since I left in 2000, I don't know, but these days there is much less of a personal touch to banking services - can a computer work out what is personal and what is business? Guess I'll find out soon enough!

Phil

kjmcculloch · Guru

I understand what you are saying, but when you can get a free business bank account is it a risk worth taking?

Kris

Scrat · Veteran Member

I could open a business account now and put next to nothing through it for the next six months, banks don't like that either, especially when it's free smile

Be assured, if/when I reach the happy position of having some serious business coming in, I will do the necessary wink

Flex Accounting Services · Senior Member

I agree with Kris to keep separate accounts where possibel for sole traders, and thats what HMRC advise too.
Bev

BC Boy · Veteran Member

I joined the FSB which brings a number of benefits among which is free banking with Co-op bank.