Business account

rose11

My bf is a trainee driving instructor, is self-employed and is a limited company. We are still trying to get the hang of what to do, and he was told you had to get a business account, which he did. For a while now he hasn't been to busy so money is abit tight, we are just managing to pay things like car hire, agency etc for his driving, so we don't usually have that much money in the account, it goes in then comes straight out again. Anyway one thing I need to know, do we really need to have a business account being such a small business? because we are being charged for everything eg putting money in putting cheques in etc etc and it may not be alot to some people but to us it is at the moment. We are in a Barclays account. Don't know if anyone can help but just getting it off my chest helps abit! :mad:

paulwf

rose11 wrote: »

My bf is a trainee driving instructor, is self-employed and is a limited company.

I guess I'm being a bit pedantic here but your bf isn't self employed, he is payed a wage by the Ltd company which he just so happens to also own.

We are still trying to get the hang of what to do, and he was told you had to get a business account, which he did. For a while now he hasn't been to busy so money is abit tight, we are just managing to pay things like car hire, agency etc for his driving, so we don't usually have that much money in the account, it goes in then comes straight out again. Anyway one thing I need to know, do we really need to have a business account being such a small business? because we are being charged for everything eg putting money in putting cheques in etc etc and it may not be alot to some people but to us it is at the moment. We are in a Barclays account. Don't know if anyone can help but just getting it off my chest helps abit! :mad:

Of course a business account is required - your bf and the company are two entirely separate legal entities. You can of course look for business accounts with either 18 months free banking or some offer free banking for life, although most of these are targeted at online customers not those banking cash regularly.

Are you sure Ltd was the right way to go? Have you had advice from an accountant on the most tax efficient way to withdraw money, i.e. the split between wages and dividends?

Horace

If he is a member of The Federation of Small Businesses then via them he can have a business account at the co-op for free (free banking for life).

Your b/f isnt self employed if he has a limited company - he is an employee and pays himself a wage. With a limited company he will need to produce annual accounts a copy of which must be submitted to Companies House and he will pay corporation tax and will pay his wages and take NI and tax from those wages as well as paying VAT. What does his accountant say? One presumes that he sought advice from an accountant before setting up as a limited company?

He most certainly needs a business account as he needs to keep business money separate from his personal money.