Ebay Business Bank Account

gavjbrown

Our is with Abbey (Santander) and its free business banking forever.

http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&c=Page&canal=CABBEYCOM&cid=1237863683378&empr=Abbeycom&leng=en_GB&pagename=Abbeycom/Page/WC_ACOM_TemplateW2

gmc_3

Hi Gav,

I've been looking at this account. Am I right that you manage it online only? How have you found this? May I ask what type of business you have on ebay? I'll mainly be selling 2nd hand stuff to begin with, picked up from car boots, jumble sales etc and wonder if this would be good for me.

Are you a sole trader or ltd company? What do you think the benefits of this account are?

Cheers

gavjbrown

gmc wrote: »

Hi Gav,

I've been looking at this account. Am I right that you manage it online only? How have you found this? May I ask what type of business you have on ebay? I'll mainly be selling 2nd hand stuff to begin with, picked up from car boots, jumble sales etc and wonder if this would be good for me.

Are you a sole trader or ltd company? What do you think the benefits of this account are?

Cheers

Hi, we manage ours online as our nearest branch is 12 miles away so all cheques are sent using free post envelopes. But they give you paying in, cheque books & cash cards etc. Ours have been running now for 5 years and not had any problems. Both companies are Ltd and one is ebay sales of new products and the other is a local non internet company.

gmc_3

Hi Gav, thanks for your reply. I think i'm going to go for the Santander one.

StaffsSW

gmc wrote: »

Thanks for all the replies.

I'm thinking of a similar route as you Steve, starting off as a sole trader then looking to grow into a ltd company. I understand that it is more beneficial for tax to become a ltd company once you reach a certain level of income. Do you know at which point it becomes more tax advantageous to become ltd? (ie how many £'s profit)

gmc

Without getting too in depth in the accountancy, I pay myself a salary of £6k per year (so within my tax free allowance), a "significant" pension funded by the business which reduces the corportaion tax, and exercise my right as sole shareholder to take up to £30k per year tax free dividends from the business profits.
I also have a healthy Directors Loan Account in place from when I "sold" the sole trader business to the Ltd company, and the tax liablilty on this capital is quite low due to Entreprenuerial Allowances.

£36k per year tax free is not a bad place to start from... so your Ltd business if you are sold director/shareholder would need to be clearing this in profits. In theory if your business makes at least £6k clear profit that you would want to take as drawings then it can be done.

Any accountant can do your books, a good accountant will save you an absolute packet in tax. Legitimately.