Do I need a business account??

funky_fiddler

Hi all
Don't know if I'm the right place to ask about this.
I have a current account and mortgage with Barclays. I am a musician/ music teacher and some of my income( not much) is self- employed. Barclays are trying to make me open a business acc. as at the moment I'm just paying my cheques into my normal bank account and am not being charged- they charge 70p a cheque which is a rip off I think when It's my money and I pay tax on it anyway - I don't pay anyone else wages or anything.
I don't really know anyone else who does the same job as me who has had this happen to them.
Any thoughts appreciated.

Many thanks!!

97trophy

No you don't really need a business account. My kids music teachers do it all through a personal account.

Ballymackeonan

As long as you are trading in your own name, there shoud be no problem, it really depends on the number and type of transactions. If you are depositing a lot of small cheques and cash they could make you take out a business account as it's on counting cash and the charges for individual transactions where they make money from bank charges. What you could do is open a building society account, lodge small amounts in there and draw out a single cheque or do an on-line transfer say once a month

Extant

If you're just being paid for a few hours of your time every week, then no, you don't need a business account. If you were ever completely self employed, then yes, you would need a business account.

Also - where did the 70p come from? The highest price for cheques is 28p, and you'd probably get free business banking anyway.

poppysarah

Tell them next time you'd open an account for your business at the Nationwide where its free.


I think for tax purposes it's much better to have sep accounts - makes it easier to sort out - but that's just me

Extant

poppysarah wrote: »

Tell them next time you'd open an account for your business at the Nationwide where its free.


I think for tax purposes it's much better to have sep accounts - makes it easier to sort out - but that's just me

Except Nationwide's account has a £5000 minimum balance and is a savings account only - I assume you mean BusinessInvestor, unless they've put out a new business product?

Abbey does free business banking, as do pretty much all banks, depending on circumstances.