bank accounts

franz · Apr 9, 2011

Being a sole trader and times are tough i thought why should i be paying my bank for every single transaction i make (and i mean every transaction) using a business account.
So i asked my bank , and they said i have to use a business account by law.
Is this true, and why cant i use another account if i only use it for business?😕😕

Blake · Apr 9, 2011

Swap banks and you will often get 12-18 months free banking. I use HSBC, I pay cash into my personal account and then transfer it online into my business ac as I refuse to pay charges for cash deposits.

Not sure if it is a law or just a cunning plan to get more money out of us.

dontknowitall · Apr 9, 2011

An account by their law!!

No law required for a business account as far as I know. If you are VAT registered then I'd assume it is obligatory and perhaps for some types of businesses. But a reasonably simple one man band business? No way!!!

Having one does make you look more professional though and you're not the only one to despise the charges.

franz · Apr 9, 2011

Thats what i thought, as long as the accountant and tax man can see where it goes in and out,should not matter.

desrob · Apr 9, 2011

franz said:
Being a sole trader and times are tough i thought why should i be paying my bank for every single transaction i make (and i mean every transaction) using a business account.
So i asked my bank , and they said i have to use a business account by law.
Is this true, and why cant i use another account if i only use it for business?😕😕

i have had a business bank account with the abbey now satander,and to be honest i was bemused when you said you get charged,every thing is free for me and i have had the account for 20yrs

dontknowitall · Apr 9, 2011

Some banks charge - Barclays are vulchers imho. At least I presume that's why they have that logo?

jase158 · Apr 9, 2011

I think he may have thought the whole issue is not that you have to have one by law but the fact that if you are using a personal account then you are lieing to your bank and saying that you are using it for personal reasons not business reason, also you can not put cheques in a personal account if they are made out to the business, I may look into going with a different bank as i have 12 months free and after that i have to pay to pay money in, cheques, i.e. absolutely ridiculous

secret squirrel · Apr 9, 2011

If you run a ltd company or a company you must have a business account.

I have one with santander which is free business banking for life...... I know couldn't believe it myself.

If your not a company you will find it easier to have an ordinary current account in your name but only used for business. This will make your life much easier. YOU do not need a specific business account for a sole trader.

I agre what other have said. Its banks on the make again..

moogwai · Apr 9, 2011

desrob said:
i have had a business bank account with the abbey now satander,and to be honest i was bemused when you said you get charged,every thing is free for me and i have had the account for 20yrs

i'm with lloyds...bleedin rip off....just applied with santander online,thanks for that desrob!! cant beleive ive been paying them scoundrals every month when you can have free banking!!

franz · Apr 9, 2011

cheers for that lot boys,off to SANTADER monday morning.
I know if you change a business account to another bank (loyds) they will only give the first six months free then you can start paying.