Self-Employed people please look in:

Rich_T_2

Hi,

Im going self-employed soon and would like to get a few tips on managing my account. Ive been thinking of setting up another account to run along side my current one where everything I earn is paid into that account.

Is this the best way?

Any help/tips/suggestions please post.

Thanks
Rich

ClaireMR

Hi, you should definitely have a separate bank account for business - easier to look after and provide info at the end of the year to the Revenue! KEep everything - receipts / record of mileage / household bills (you can claim a % of elec etc ifyou work from home).

Try looking up business link on line & contact HMRC for a setting up business new pack - easy to follow.

Good luck

jonesMUFCforever

What sort of self employed will you be?
What sort of transactions will go through the account - a lot of cash and cheques or just the occasional transaction?
You will need to keep your own accounts for the business and inform Inland Revenue within 3 months of setting up.
For a small business to start off I would open a no2 account with existing bank and run your accounts side by side.
#However if you need finance then contact a Business manager as generally speaking Business loans are cheaper then personal loans although there may be fees to pay to set up.
Good luck.

Rich_T_2

ejones999 wrote:

What sort of self employed will you be? Trader.

What sort of transactions will go through the account - a lot of cash and
cheques or just the occasional transaction? cash, cheques, bankers drafts.

Thanks for help,

Business will require no finance yet,

Setting up another account to run along side my current account seems like the way to go. Will look into that now.

This may sound like a silly question but here goes Everyone ive spoke to have said you must keep all bills/receipts. If the transaction goes through the planned bank account then wont statements be enough? (I already keep a record of all sells tranactions)

Thanks

Rich

TonyB

I doubt it because the bank stat won't give enough detail to prove where money went

Rich_T_2

TonyB wrote:

I doubt it because the bank stat won't give enough detail to prove where money went

Do you mean I need to prove where I spent my eanrings?

inmypocketnottheirs

Rich_T wrote:

Do you mean I need to prove where I spent my eanrings?

Unless you want to pay tax on all the money you earn. The general idea is to offset as many of your legitimate business expenses against your total income as possible to reduce your tax liability. Otherwise if you don't keep any record of your expenses, you wont be able to show the revenue where you have spent your money and you will get taxed on all your earnings.

Stonk

Treat your business totally separately from your personal financial affairs. One of the most fundamental consequences of this rule is that you have separate accounts. There are far too many potential pitfalls to start mixing them up.

And ... keep your receipts!

dennyboy

Someone on this board recommened Abbey National Business banking which is free for most transactions, as your staying in credit with the business I don't think this matters. Heres the link, http://www.anbusiness.com/

If your interested theres a great hosting account with http://www.ixwebhosting.com for hosting a website if you need one, also has a free shopping cart. I have an account with em, support is top class, cheap, also, with great reviews.
Hope this helps.

maforduk

Keep a seperate account.
If you take any money out of the business account for personal use then there is a financial name for it called Drawing's!

You must keep all invoices for 6 year's and it's also best to keep any receipts for furute use if need be.
Be sure to have an accountant as their expertise is invaluable.

Good Luck with the venture.