Business Banking Advice?

[hannah1991]

Hi,

Just about to set up as self employed and i've been told by some people that a business bank account is needed. Does anyone have one of these for their finances, if so which bank would you recommend?

I can see that having a separate bank account would obviously be so much easier but why pay for a business one instead of just having another current account?


May seem like a silly question and i may have posted in the wrong bit but i would just like peoples opinions really.


Thanks!

Hannah

 

[justlead1]

Hi. If its just one sole trader? It may well be cheaper to use your existing account. How ever i would say most self employed plumbers are better at plumbing than book keeping. As a result January time is stressful trying to find all expenses and income. My advise would be to use cards attached to your bank account for all purchases connected to business. This will result in you having monthly statements of purchases including fuel etc, posted to your house. Which make managing / accounts easier to evaluate, regarding tax and cash flow. Good Luck

 

[charliejamesuk]

Just signed up to Natwest Business Banking as they are offering 2 years free banking. I explained I had been using my personal current account for business to date and they said they'd close my account if I continued to do this, not sure why.

But there business banking appears fine. I've got a new current account and a savings account (which is I pay my tax into so earn interest on it).

 

[jmsgas]

hi i use alliance and lester (santandar soon) as business banking is free and you bank your money in the post office been with the over 5 years know been great

 

[BLOD]

I was with Alliance & Leicester, but sometimes cheques would take up to 8 days to clear when paying in through post office - this didn't help the cash flow at all.
They wouldn't even let you pay a cheque into a business account at a local branch - ridiculous !

I've been with HSBC for a few years now & reckon they're much better.

blod

 

[jmsgas]

this is changing soon as yo will be able to pay in at any santandar branch

 

[BLOD]

Only once you've got to the front of the queue 😉

 

[plumbster3456]

you will need a business bank account if you are going to do any sub contracting for any of the larger firms.
and also as said before you will find things easier if you use your card for any purchases as book keeping will be 10 times easier if you do this.