Business account or not

[curlycan]

Hi
In September i'm starting my tiling business, could someone please tell me if i need a business bank account or can i just use a normal current account (or under the mattress might be safer). If I need a business account then would any one recommend one, got a meeting with the loyds business manager soon so want to be prepared with some questions.

Thanks

[david campbell]

to the forum!
it's entirely up to yourself if you want to use a business account straight away,bearing in mind some have seperate charges for things and it could be money spent elsewhere when starting up!
i would recommend getting a meeting with business gateway they will give you some free and impartial advice

[WHID to?]

Your bank might get a bit funny about cheques from a business going into a personal account. I am with Nationwide at the moment and they have said its not allowed but they are probably a dodgy example.

A little impartial advice is the way forward.

[CDS]

I have 2 personal current accounts with the same bank and use one of them solely as my business account. Pay cash and cheques in and no one has ever questioned me... fairly obvious I'm using for business when i go in wearing scruffs! Have enquired about business banking but refuse to pay the charges whilst I'm getting away with the current arrangement - Did look at Abbey some time back, they appear to have excellent business facilities and charge very little/nothing up a certain number of deposits.
Cheers Chris

[david campbell]

i am the same as above,i bank with clydesdale and they have known i was self-employed before i started tiling and never question anything!

[Dan]

Checkout THIS thread that Darren made the other day. Most business banks do free banking for 12 - 18 months, though check what the charges will be from then-on.

HSBC, Lloyds, Natwest, they're all pretty much the same really.

Though as said above; I'd use some of the advice available to you for 'free' (it's government funded, so not quite free) as you might be able to get a grant or low interest loan through something like the princes trust and the likes if that helps with starting your business off.

All the best,

[harry]

I have 2 personal current accounts with the same bank and use one of them solely as my business account. Pay cash and cheques in and no one has ever questioned me... fairly obvious I'm using for business when i go in wearing scruffs! Have enquired about business banking but refuse to pay the charges whilst I'm getting away with the current arrangement - Did look at Abbey some time back, they appear to have excellent business facilities and charge very little/nothing up a certain number of deposits.
Cheers Chris

Exactly the same here

[harry]

I am the same as above, two current accounts with Barclays never been questioned.

[davy_G]

Im a current account man. No hassles yet but i suppose in time i will have to change to a business account.

[Bolter]

As I understand it, and please correct me if I am wrong, but as a sole trader, you can operate from a normal account.

If you are a limited company, you must have a business account.

Hope that helps.

[grumpygrouter]

You will almost certainly find that somewhere in the small print of personal current accounts that it states that they are not to be used for business purposes. You may also find that te same small print says they can close the account without any notice should they find it IS being used for business purposes.

HOWEVER...and this is important....currently legislation forbids HMRC to have access to personal accounts. To get access they need to have your permission or get a court order UNLESS THEY HAVE GROUNDS TO BELIEVE BUSINESS MONEY IS GOING THROUGH IT. If that is the case, they can demand access without your permission or reverting through the courts TO ALL OF YOUR PRIVATE ACCOUTS. For this reason alone it is better to keep personal and business accounts separate.

[doug boardley]

I have business and personal accounts, all monies earned via work go into my business account, altho' I quite often use money in my business account for personal reasons and account for it under "drawings (personal)"

[Colour Republic]

most banks as Dave said will give you 18 months free banking, most accounts also come with a lot of start up freebies such as accounting software, free time with business advisers (not in house either but independant consultants which the bank will pay for) and if you're really lucky they chuck in a free Bic pen.

Customers are much happier making cheques out or bank transfers to companys compared to personal accounts, It makes you that little bit more professional IMO

For many years I had a business account with Barclays which were really good, as if the bank was busy you could by pass and see a business manager who would pay in checks, let you draw money, or just have a chat without having to que... I left becuase one of the cashiers really p***ed me off! She had seen me countless times, seen me pay in a hell of a lot of money and one time when I didn't have any ID she refused to let me withdraw money, now it has to be said that I knew all the girls in the bank and none of them ever asked me for ID becuase I was in there daily, but for some reason this women took a disliking to me and cuased me hell, so being a typical bloke I threw my toys out the pram and closed my account there and then! So i moved to Lloyds and whilst not a bad bank they don't offer the same service, to get the same sort of service that I had at Barclays I'd have to bank over £500k a year. wish i hadn't moved

[curlycan]

Thanks guys the info is helpful but still no definite way to go.Suppose at the end of the day it's a bit of a personal choice. Have seen Abbey do a Business account online with no charges for life of account. But will look at what Business gateway have to say before I decide. Once again thanks all

[curlycan]

most banks as Dave said will give you 18 months free banking, most accounts also come with a lot of start up freebies such as accounting software, free time with business advisers (not in house either but independant consultants which the bank will pay for) and if you're really lucky they chuck in a free Bic pen.

Customers are much happier making cheques out or bank transfers to companys compared to personal accounts, It makes you that little bit more professional IMO

For many years I had a business account with Barclays which were really good, as if the bank was busy you could by pass and see a business manager who would pay in checks, let you draw money, or just have a chat without having to que... I left becuase one of the cashiers really p***ed me off! She had seen me countless times, seen me pay in a hell of a lot of money and one time when I didn't have any ID she refused to let me withdraw money, now it has to be said that I knew all the girls in the bank and none of them ever asked me for ID becuase I was in there daily, but for some reason this women took a disliking to me and cuased me hell, so being a typical bloke I threw my toys out the pram and closed my account there and then! So i moved to Lloyds and whilst not a bad bank they don't offer the same service, to get the same sort of service that I had at Barclays I'd have to bank over £500k a year. wish i hadn't moved

Probably because you were earning more money than she was.

[Colour Republic]

Probably because you were earning more money than she was.

Turnover and profit are two very different things!

[curlycan]

Turnover and profit are two very different things!

Still would you like to be stuck behind a plastic screen counting other peoples monies.

[doug boardley]

Still would you like to be stuck behind a plastic screen counting other peoples monies.

I would rather be on the street selling "Big Issue" seriously!!

[Colour Republic]

Depends on how you count it, I like the 'One for me, one for you' method