Bank accounts for business and personal

alanjohnson

Could anyone tell me....

Am I allowed to use my personal bank account as my business bank account too (as in have both personal transactions and business transactions all in the same account) and then just seperate the personal from the business during accounting / return / expenses books?

Reason is I can't get another bank account (dont want to go into reasons why)

Thanks

Horace

Ideally you should have two separate accounts as it is easier to see what is business and what is personal. You could try getting another account (even another personal one that you just use for business) - try somewhere like the co-op. Am assuming that it is due to debt problems which is why it is difficult for you to get another bank account.

Business and personal money should be kept separately because ni payments are made from the business one and that way you can keep on top of what you have paid - eventually you will pay your tax as you need to keep a third back of all monies received into the business to cover tax. Have you registered your self employment with the HMRC?

paulwf

OP you posted another thread recently about whether to go Ltd or sole trader. Just to follow on from Horace if you go down the Ltd route you will need a separate bank account.

As you intend to be VAT registered (either as Ltd or sole) a separate account is really the way to go.

ukbill69

Always get a separate bank account from personal and business, you dont want the inland revenue looking at all your other personal items do you?