sole trader bank account?????

hosebergine

Hi

I'm just establishing myself as a freelance PR consultant which I plan to fit in around my toddler. I have decided to go the sole trader route because it seems more appropriate to my ad hoc working life.

I will not be earning a huge amount and some months may not earn a thing. However I do want to have a bank account purely for work so I can do my self-assessment more easily. I'm not fussed about an overdraft facility - I just want to bank the money, occassionally dip into it, set up a direct debit for my NI contributions and use the debit card for expenses incurred such as food, travel, stationery etc.

I've had a quick look at business bank accounts but are they the right thing for me? Then I considered just using a standard current account with a good rate of interest but I'm not certain I will earn enough to make monthly minimum payments.

Can anyone help me out with some advice please? I'm a bit stuck!

yeovilmac

Hi,

I'm much in the same position as you.

I'm going to restart my courier business on January 1st once I have all my relevant paperwork sorted. Like you, I won't be able to pay in the minimum payments required on some accounts ( up to £1,500 / month ) so I think the very basic bank account at Co-Operative Bank will do me. It comes with a Visa Electron debit card which will also help me no end. Their internet banking is good too.

Only trouble I find with them is that there aren't many branches about so internet banking is more important than ever.

Good luck in your new business.

the_optimist

You don't need a business account. As long as you keep book and can account for your business transactions, you can just use your current account.
My OH has been self employed for years. He uses his credit card for purchases and his current account for payments and he has had no problems with his self assessment.
I've started working freelance a few months ago and am doing the same.
As long as you keep book - which you would do anyway, whether with a separate account or not - you'll be fine. Good luck

oldrimes

It may be worthwhile having a look at Abbey National's free business account:
http://www.anbusiness.com/

It comes with a cheque book and a card that allows you to withdraw money. There are limits on the number of free transactions, but as long as you can fit within those limits, the account is free.

martindow

It is more convenient and makes the book keeping easier to use separate accounts but you don't have to do this.