Do i need business bank account?

mahdi87

Hi guys,

I am recently registed as self employed and i will sign up as MIP shortly mu question is do i need Sole trader business account or just use personal account?

what docs do i need to open business account apart from usual docs (passport & proof of address)

many thanks

JodieR

3 things to consider:-

1. It's easier to keep track of your business affairs if you've got a seperate account for business transactions

2. Some banks don't allow business transactions in a personal account - they may not mind a few cheques paid in here and there, but I did have a client who's bank threatened to close the account because of this.

3. If you operate through a personal account you will only be able to bank cheques made out to you personally, this doesn't look professional if you operate under a trading name and then tell clients you can't accept cheques in you trading name.

Jodie

T.C.

A business account with HSBC (on the correct tariff) is free so long as you stay in credit and do not bank or withdraw cash direct to or from the account.

I agree with JodieR - it will be much easier to keep track of your business that way.

Monsoon

4. If you operate a business through your personal account, in the event of an enquiry into your business, it leaves HMRC free to rifle through your personal finances. If you keep business in a separate account, they can only look at that one!

Plenty of free business bank accounts these days, may as well get one.

Think about it too - you will have to do your own bookkeeping - if you use your regular current account, you will have to enter all of your domestic transactions to reconcile the bank, what a waste of time

mahdi87

thank you I opened business account today with santander. my next step is MIP which i will send next week... just trying to complete my CPD now