Opening a business account

[850Rick]

Hi i was wondering how do i go about about opening a bank account for sticking money in from the business?I will be working for my self and i dont need any credit from the bank or anything.What stuff do i need to take to the bank,im new to all this as you can tell.

 

[jtsplumbing]

Just go into bank and tell them you want a Business account but ask about charges! some can be quite high,

 

[SimonG]

Shop about you should get some free banking initially.

From memory I had to take in passport, a couple of utility bills (gas electric council tax) and a company letter head.

 

[850Rick]

Shop about you should get some free banking initially.

From memory I had to take in passport, a couple of utility bills (gas electric council tax) and a company letter head.

Thanks Simon thats very help full of you much apprieciated

 

[Koogatubac]

I know a far! Better answer when its just yourself... Why do you need a BUSINESS account? Just open a flexi or something... Doesnt cost you anything to pay in pay out etc

 

[jtsplumbing]

Thats OK as long as you are working useing your own name and not a Co name.

 

[850Rick]

Whats a flexi account ive never heard of one lol

 

[850Rick]

And how much am i allowed to earn before the tax man wants his piece

 

[dontknowitall]

Supply:

Passport
Driving licence
Utility bill
Status
Date of birth
Mother's maiden name (if known)
Father's name (if you know who the father was)
Name, address, email, telephone number, sort code, account name and account number of existing bank details
Van registration, V5, MoT certificate, insurance
PL details
Number of children bred
Number of children for whom you're responsible
Number of dependents
Date you took your GCSE maths exam
Best present you had for your 5th birthday
Number of hairs on your chest
Which ball hangs lower

The list is endless ...

 

[850Rick]

That bad aye lol.I will be the proprieter.I want to do this right first time round

 

[Phil]

If possible don't give them you're name or address or they (any bank) will send you untold junk mail every day, its totally relentless. :32:

 

[850Rick]

In many years to come i want to move to another country,and if the emirgration people want proof that im earning and proof of what ever i would like it right first time round instead of guessing.

 

[Guest123]

The easiest way is to apply online. If approved they'll contact you and tell you what to do next.

I like Lloyds TSB and you get free banking for a year, which most of the other major High Street Banks do as well.

One thing to remember is to go with a bank that has the most branches near you and offers online banking for out of hours use.

 

[Phil]

Flexi account lol.

 

[850Rick]

I never knew you could get charged for having a business account,this is certainly an eye opener.Do you pay it each year and does the cost vary from bank to bank?

 

[850Rick]

The easiest way is to apply online. If approved they'll contact you and tell you what to do next.

I like Lloyds TSB and you get free banking for a year, which most of the other major High Street Banks do as well.

One thing to remember is to go with a bank that has the most branches near you and offers online banking for out of hours use.

Thanks mate for your advice.My missus seems to think that Lloyds and royal bank of scotland are the only english banks left lol and all the other banks have there customer services over seas .

 

[jtsplumbing]

I use Nat West, very good call center's in UK, was with Barclays for years glad I got rid of them, bank charges high every quarter, charge for putting in & takeing out number of Cqs used anthing they could think of.

 

[Plumbus]

If you use the same bank as where you have your personal bank account (if they offer business accounts) you may not need ID as they will know you from records. The advantage of having both accounts at the same bank is ease of transaction - you can pay in, transfer funds etc in one visit/online. Years ago having accounts at different banks helped with cash flow but that's a different story!!

What you will need in all cases is a business card and/or letter headed paper and depending on the banker maybe even a business plan however simple. most offer foc banking for 12 to 18 months so long as you don't use an overdraft or go overdrawn and at the end the period you will pay for paying in, cash withdrawals, statements, transfers, bank appointments with you Manager if needed etc.
if you are trading in your own name only then you may get away with using a dedicated personal account.

Hope that helps...I worked for a bank many moons ago when the bonuses were worth getting out of bed for!!!

 

[Phil]

I have a Santander internet account that enables me to access balance, transfer money online etc.

Only trouble is the password system, you more or less have to crack the Enigma code each time you visit just to see your accounts. Pfft.

 

[stevetheplumber]

if your paying in more than a thousand a month santander is free and 5 pounds a month if your under ive never been charged for any transactions

 

[kay-jay]

Hsbc is free for a year. Then its pennies for a cheque paid in and a few pennies more for cash paid in. 3grand overdraft. Online business banking is really good and really easy. I have an hsbc app for business account and can do it from my phone in seconds

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[850Rick]

I have a Santander internet account that enables me to access balance, transfer money online etc.

Only trouble is the password system, you more or less have to crack the Enigma code each time you visit just to see your accounts. Pfft.

I like that one mate

 

[850Rick]

Hsbc is free for a year. Then its pennies for a cheque paid in and a few pennies more for cash paid in. 3grand overdraft. Online business banking is really good and really easy. I have an hsbc app for business account and can do it from my phone in seconds

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Why do they charge for putting money in?I put a cheque in this morning at hsbc in my personal account lol.Whats the difference?

 

[Guest123]

Almost every business account now offers online banking. Mines supplies a small security card machine where you have to key in a number to access your account.

Don't like RBS, much prefer Lloyds TSB and they're UK banks mate, not English!

 

[JCplumb]

Why do they charge for putting money in?I put a cheque in this morning at hsbc in my personal account lol.Whats the difference?

It's how they make money, it's got nothing to do with the cost of the process. Makes me sick to be honest.

 

[kay-jay]

Why do they charge for putting money in?I put a cheque in this morning at hsbc in my personal account lol.Whats the difference?

Not exactly sure as Im still in the free 12 months but its only pennies really

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[850Rick]

It's how they make money, it's got nothing to do with the cost of the process. Makes me sick to be honest.

Makes me sick they make enough money anyway

 

[850Rick]

Not exactly sure as Im still in the free 12 months but its only pennies really

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Have you not long being working for your self then Kay-jay? How are you finding it.

 

[850Rick]

Also going back to the tax man,i know everybody has there do's and donts you no what i mean lol but how much can you earn before the tax man wants a piece

 

[Plum Bob 66]

I know a far! Better answer when its just yourself... Why do you need a BUSINESS account? Just open a flexi or something... Doesnt cost you anything to pay in pay out etc

There are issues with doing this , the main one is that the HMRC can choose to look through any personal accounts you have opened in your own name, if they know you are a trading as a plumber but have no recognised business account.With a running business account by law this is all they can have access to. IMO this is a risky way to operate.Im sure your 100 % above board and everything goes through the business, but they dont know that and will snoop into every aspect of your financial affairs to assess your tax liability should they have a doubt that your paying the right amount. The reason I know this is because it happened to me in another life, after that I took my accountants advice.

 

[850Rick]

There are issues with doing this , the main one is that the HMRC can choose to look through any personal accounts you have opened in your own name, if they know you are a trading as a plumber but have no recognised business account.With a running business account by law this is all they can have access to. IMO this is a risky way to operate.Im sure your 100 % above board and everything goes through the business, but they dont know that and will snoop into every aspect of your financial affairs to assess your tax liability should they have a doubt that your paying the right amount. The reason I know this is because it happened to me in another life, after that I took my accountants advice.

Well said and good advice even for the new people who are starting out

 

[hammers4spanner]

There are issues with doing this , the main one is that the HMRC can choose to look through any personal accounts you have opened in your own name, if they know you are a trading as a plumber but have no recognised business account.With a running business account by law this is all they can have access to. IMO this is a risky way to operate.Im sure your 100 % above board and everything goes through the business, but they dont know that and will snoop into every aspect of your financial affairs to assess your tax liability should they have a doubt that your paying the right amount. The reason I know this is because it happened to me in another life, after that I took my accountants advice.

if you get a full inspection they will break don every expenditure of your life to what you declare each year anyways .

 

[TBServices]

Santander. Free forever and I've never had a problem. Plenty of branches and their online banking system is top notch.


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[850Rick]

Santander. Free forever and I've never had a problem. Plenty of branches and their online banking system is top notch.


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Thanks for the heads up

 

[REDSAW]

There are issues with doing this , the main one is that the HMRC can choose to look through any personal accounts you have opened in your own name, if they know you are a trading as a plumber but have no recognised business account.With a running business account by law this is all they can have access to. IMO this is a risky way to operate.Im sure your 100 % above board and everything goes through the business, but they dont know that and will snoop into every aspect of your financial affairs to assess your tax liability should they have a doubt that your paying the right amount. The reason I know this is because it happened to me in another life, after that I took my accountants advice.

unless its a personal account, joint, you and the missus, as she has nowt to do with your business they need permission.

 

[Mike Jackson]

The most important thing as far as I'm concerned is to have a bank with a manager in the local branch that can male decisions and you have someone to talk to. I used to bank with the Abbey National (now Santander) and they were fine until administration of the accounts was taken out of the branches and put into a regional office. An admin error (someone pushed the wrong button and blacklisted my account) ended up with me being over a thousand pound overdrawn and none of my bills paid. This happened in the space of a week and took a further three to sort out whilst I was getting demands from all over the place because payments were bouncing. They then did the same thing 6 months later but I caught it a lot quicker.

I'm now with Nat West.

 

[850Rick]

The most important thing as far as I'm concerned is to have a bank with a manager in the local branch that can male decisions and you have someone to talk to. I used to bank with the Abbey National (now Santander) and they were fine until administration of the accounts was taken out of the branches and put into a regional office. An admin error (someone pushed the wrong button and blacklisted my account) ended up with me being over a thousand pound overdrawn and none of my bills paid. This happened in the space of a week and took a further three to sort out whilst I was getting demands from all over the place because payments were bouncing. They then did the same thing 6 months later but I caught it a lot quicker.

I'm now with Nat West.

OMG not good at all

 

[petercj]

I would suggest you talk to your existing Bank about what kind of a business you are going to run, and get some advice on the various types of accounts available.

If you are running a business you need to keep some record of expenses and receipts for your own protection, using a Bank account with a card for all your purchases, fuel, etc, is a good way of keeping a basic record.

It pays to get an accountant to prepare your accounts for the HMRC, and they will find your Bank statements very useful for the purpose.

A few folders for your invoices, and a couple of duplicate books for estimates and invoices should be enough to get you going.

Keeping your accounting simple but consistent is the way to go.

 

[850Rick]

I would suggest you talk to your existing Bank about what kind of a business you are going to run, and get some advice on the various types of accounts available.

If you are running a business you need to keep some record of expenses and receipts for your own protection, using a Bank account with a card for all your purchases, fuel, etc, is a good way of keeping a basic record.

It pays to get an accountant to prepare your accounts for the HMRC, and they will find your Bank statements very useful for the purpose.

A few folders for your invoices, and a couple of duplicate books for estimates and invoices should be enough to get you going.

Keeping your accounting simple but consistent is the way to go.

Thankyou for your advice

 

[A1P]

Santander. Free forever and I've never had a problem. Plenty of branches and their online banking system is top notch.


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They are soon going to start charging from £7.50 monthly upwards.The 'free forever' has been conveniently forgotten.They are going to offer an improved service which 'according to a customer survey' will be welcomed. Robbing bar stewards.Not yet found an alternative but will probably move on principle.

 

[850Rick]

They are soon going to start charging from £7.50 monthly upwards.The 'free forever' has been conveniently forgotten.They are going to offer an improved service which 'according to a customer survey' will be welcomed. Robbing bar stewards.Not yet found an alternative but will probably move on principle.

This is getting from bad to worse,i dont even want credit

 

[TBServices]

They are soon going to start charging from £7.50 monthly upwards.The 'free forever' has been conveniently forgotten.They are going to offer an improved service which 'according to a customer survey' will be welcomed. Robbing bar stewards.Not yet found an alternative but will probably move on principle.

Thanks for that, I didn't know!

Will have to figure out if the subscription is cheaper than fees for paying in etc at other banks.


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[galaxy_plumbing]

Just go into bank and tell them you want a Business account but ask about charges! some can be quite high,

yep. Lloyds gave me 18 ,moths free business banking and I get statements for different types of business account during these 18 months showing different charges, so I can decide after trial period which type will suit me best. Got debit card and cheque books too

 

[dontknowitall]

This is getting from bad to worse,i dont even want credit

They're not ranked below MPs and estate agents and called fat cats for nothing - there's a reputation to maintain.

 

[petercj]

yep. Lloyds gave me 18 ,moths free business banking and I get statements for different types of business account during these 18 months showing different charges, so I can decide after trial period which type will suit me best. Got debit card and cheque books too

Been with Lloyds for over 40 years, can't recall then making one mistake.

The nearest was when I had some transactions cross over one night, and for an hour or so my account was in the red - I usually keep at least a thousand in my current account.

They charged me for every standing order on the account - £45, all of which are normally free on a private current account.

Went to the local branch and asked about charges, and the the member of staff explained that I'd been caught out by the figures shown on the cash point screen, i.e. I'd been guided by what was on the screen - apparently there is a lag (or was) between what you see, and what is deemed to be in your account.

She was quite sympathetic and said she would speak to the manager (who was new to the branch and I'd never met), she came back looking embarrassed and said: "he says the charges must stand!" Without me asking she gave me the address for making a complaint. Sent a letter off, and within two days had a phone call from a woman who introduced herself as the regional manager for Lloyds covering the South of England.

She apologised (which actually sounded very genuine) and said: "I've told him (meaning the local manager) to remit all charges from your account, which should have been done by now". She gave me her mobile number, and said that if there were any further problems related to the matter to ring her and she would sort it immediately.

I was surprised that they'd taken the matter so seriously, but seriously impressed.

I opened Bank accounts for my sons when they were about 12, and paid their pocket money into their accounts by standing order every month so that they would get a credit history. When my youngest son was in sixth form he wanted to borrow £4000 (he did have a part time job at weekends) and Lloyds gave him the loan - no other Bank would even consider it.

Never the cheapest for loans, etc, but for efficiency and politeness of staff, I have to give them five stars.

 

[mjt]

Whats a flexi account ive never heard of one lol

is that like a flexi pipe?!

 

[dancinplumba]

Santander. Free forever and I've never had a problem. Plenty of branches and their online banking system is top notch.


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t
hats what they told me
now they are going to steart charging me !!!!! bstards

 

[REDSAW]

not been in a bank for 15-20 years now, stuff em!.

last business account i had was with NAT WEST, after presenting to them a 5 year business plan and depositing £250 to it our business took a little longer to set up than expected. it was when we finally got going we realized NAT WEST had taken the whole lot on charges even though nothing went in nor came out of it!!

con artists and they wont get my business. problem is every bill you get wants paying through a bank?

 

[850Rick]

not been in a bank for 15-20 years now, stuff em!.

last business account i had was with NAT WEST, after presenting to them a 5 year business plan and depositing £250 to it our business took a little longer to set up than expected. it was when we finally got going we realized NAT WEST had taken the whole lot on charges even though nothing went in nor came out of it!!

con artists and they wont get my business. problem is every bill you get wants paying through a bank?

Oh im a little stuck then with what to do,it seems people have had ups and downs with there bank accounts

 

[petercj]

Oh im a little stuck then with what to do,it seems people have had ups and downs with there bank accounts

"Lloyds for the journey", as far as I'm concerned.

Banks are all the same at root - they all make their money out of lending other people's cash to their customers - they'll be nice to you as long as you stay in the black, and will get nasty if they think you might default on paying them back money they've lent you.

Banks are: "fair weather friends", never forget that, and you shouldn't be disappointed.

 

[850Rick]

"Lloyds for the journey", as far as I'm concerned.

Banks are all the same at root - they all make their money out of lending other people's cash to their customers - they'll be nice to you as long as you stay in the black, and will get nasty if they think you might default on paying them back money they've lent you.

Banks are: "fair weather friends", never forget that, and you shouldn't be disappointed.

Thanks for the advice,im only starting out small,keeping the day job at taking from there building it up piece by piece

 

[Guest123]

t
hats what they told me
now they are going to steart charging me !!!!! bstards

Welcome back Steve, where have you been hiding?

 

[A1P]

Thanks for that, I didn't know!

Will have to figure out if the subscription is cheaper than fees for paying in etc at other banks.


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Good news!!!! Due to protests Santander have backtracked.This account was supposedly 'free forever ' so no wonder people were angry.The situation now is existing account holders can stay in their 'free' account or opt for all the benefits (repeated with heavy sarcasm from their statement) of the new account with fees of £7.50 ++ monthly.There must have been a mass protest,possibly via Money Expert.com .

 

[TBServices]

Good news!!!! Due to protests Santander have backtracked.This account was supposedly 'free forever ' so no wonder people were angry.The situation now is existing account holders can stay in their 'free' account or opt for all the benefits (repeated with heavy sarcasm from their statement) of the new account with fees of £7.50 ++ monthly.There must have been a mass protest,possibly via Money Expert.com .

Awesome! This is good news!


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