& that is where i struggle. My bank charges me about £90 pm for paying in cash and the Post Office / Alliance & Leicester Bank accounts are not interested as i pay in too much cash.
I have been with NatWest since I started up six years ago and about 18 months ago threatened to move to the Halifax who were offering free business banking forever. So NatWest gave me free banking!! BUT, although its a small business, i.e. only me in my office at home, there is a large amount of cash coming and going each week, nearly all by BACS and VAT which sits in a high interest a/c until it needs to be paid. I must compare rates though and see if I can do better elsewhere, but it is useful having all your a/cs under one roof - business, personal and savings.
I get free business banking with HSBC for 2 years because I am a personal customer. Many banks will do this. If you really don't want to pay charges you can change banks every year or every other year and keep getting the 'introductory offer'.
One point about using a separate personal account for business transactions: you can't have your trading name on a personal account, obviously. I was once refused payment of an invoice by an educational institution because my trading name *was* my own name.
They said they would only write a cheque in my name if I gave them a copy of my annual accounts and gave them my tax code so they could check with the Revenue.
It so happened that I was in the process of changing my trading name so I didn't have to fight that particular battle.
Just wantd to say thanks for the comments and advice on this thread. My sister now has an Abbey free banking account for her new web design company - she's offering such cheap prices that she can't afford much of a margin, and the transaction limits are generous enough for a new business, so the account is ideal for her. I opened the same type of account for my (ailing!) business after Barclays ripped me off something rotten.
Also opened a second account with my bank to keep web design freelance work separate to everything else - no hassles, just told the bank it was "to keep some things separate from my main account" - got a Solo card and chequebook no worries, and no overdraft to tempt me either
Just wanted to say, I have recently set up my own business and use Bank of Scotland.
They have a business account where you pay no charges for anything other than cheques, which are 40p per cheque. This is ideal for me as I write a minimal number of cheques each month, most transactions are via direct debit with is totally free!
They made opening the account really easy and (touch wood) have had no problems with them whatsoever.
I am a sole trader and use a Natwest current account solely for business use, I also have a friend who is a inland revenue registered (or something like that) accountant. Natwest clicked onto the fact i might be using this account for business and asked me. I said I was and they tried to insinuate that legally I should have a business account. I asked my friend and he said tha bank is trying to say its a legal thing to make you get there product, he said you don't have to have one. They kept hounding and I threatened to move all my other products ISA's etc elsewhere as it wasn't a legal requirement, I thought they might stop my account but 2 years on they still haven't.
But having read The Money Diet and proving loyalty doesn't mean jack i am due to swap my other products the best rates. So i will have to use another excuse next time.
As a sole trader- you are the business, so can't see how it could "legally" make any difference- but you may be breaching their terms and conditions by using a personal account. That said look at this thread for other options tghat may be free anyway.
I use Abbey- free and they pay interest.
Used to use LlloydsTSB (still open) and they charge me for direct credits - and for transferring funds from Bus A/c to personal account - even if I do it myself on the internet.
Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
Replies
i hope it's not a naiive question, but how do you bank your cash (coin & notes) ?
MTC
Mark
hence my problems
MTC
They said they would only write a cheque in my name if I gave them a copy of my annual accounts and gave them my tax code so they could check with the Revenue.
It so happened that I was in the process of changing my trading name so I didn't have to fight that particular battle.
Also opened a second account with my bank to keep web design freelance work separate to everything else - no hassles, just told the bank it was "to keep some things separate from my main account" - got a Solo card and chequebook no worries, and no overdraft to tempt me either
Brilliant advice from all - thank you!
Hi There,
Am new to the board!
Just wanted to say, I have recently set up my own business and use Bank of Scotland.
They have a business account where you pay no charges for anything other than cheques, which are 40p per cheque. This is ideal for me as I write a minimal number of cheques each month, most transactions are via direct debit with is totally free!
They made opening the account really easy and (touch wood) have had no problems with them whatsoever.
Hope this helps ;D
But having read The Money Diet and proving loyalty doesn't mean jack i am due to swap my other products the best rates. So i will have to use another excuse next time.
I use Abbey- free and they pay interest.
Used to use LlloydsTSB (still open) and they charge me for direct credits - and for transferring funds from Bus A/c to personal account - even if I do it myself on the internet.