Catering tailer do we need a buisinees account?

me1234567 · 6 March 2010 at 8:55AM

Hi everyone,

I'm thinking of starting a catering trailer, I have a pitch and all that but i was just trying to find out about buisiness bank account. Do I need one or can I use my current account which i don't use. I don't need any credit or anything like that.

Is there anyone I could phone to ask to make sure thats ok?

Many thanks
Lin

Pennywise · 6 March 2010 at 10:28AM

It's between you and the bank whether you need a "business" bank account. Most banks' T&C's for personal accounts include a clause that you won't use it for business, so you need to check otherwise you could in breach of their T&C's which mean that they can withdraw their banking services from you, which could be disastrous if you have an overdraft or bank loan!

A lot of people get away with it because their transactions are few, but with a catering trailer, I'd say it'd be obvious to the bank as you'd be putting in a lot of cash. You'd be best getting a business bank account that don't charge much, or even better, free, for banking cash. You can get a Co-Op business bank account through the Fed of Small Businesses which a lot of retail shops use as you can also bank the cash in post offices. I think Alliance & Leicester and Abbey do likewise. Most of the main High St banks will charge a fortune for handling large amounts of cash so best to stay away from those if you can avoid it.

borders_dude · 6 March 2010 at 10:45AM

Things will get messy further down the line if you mix your business and personal cash!

I tend to think its best taking the time and effort at the begining to get a business account set up.

property.advert · 8 March 2010 at 12:28AM

I'd use a separate account for sure just to separate personal and business money.

As it seems an all cash business, no need for taxes and all that rubbish just yet but keep your paperwork. Just hidden.

As for banking, I have had cash based businesses and what you end up with is notes and you recycle your change. In fact, you will most probably need to find some way of regularly getting charge. It is good to do "business" with someone who gets change but does not need it, like a toilet where they charge small amounts.

You can bank whatever cash you want and you do not need anything other than another personal account. Personally I would get one where you can do it all online and where you can send money to yourself for purchases that you make on behalf of the "business".

Not that difficult but do keep it separate.

fengirl_2 · 8 March 2010 at 8:43AM

The views expressed by property.advert are not those generally given on this site where we do not encourage people to evade tax.
As borders dude says, its sensible to keep your business income separate and so a separate account is sensible.
As a cash business you are high risk for investigation, so you need squeaky clean records. Bank all your takings, compile daily income sheets and pay for all purchases by cheque or else withdraw cash specifically for purchases.
You need to register with HMRC as soon as you start to trade. You need to be aware that local authorities inform HMRC of the names and addresses of people who have street licences, as do organisers of such events as Glastonbury, etc.

Dr.Shoe_2 · 8 March 2010 at 9:47AM

Apparently Nationwide do a good one that's free.

Catering tailer do we need a buisinees account?

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