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Business Bank Account Rejection..

Orville
Orville Posts: 1,906 Forumite
Part of the Furniture 1,000 Posts Combo Breaker PPI Party Pooper
in Budgeting & bank accounts
Hi.

I have recently failed a business bank application with my personal bank Santander.

I should point out that i have recently come out of a Debt Relief Order at the end of September.

I am starting up an on-line business. The money will be generated by phone calls (call diversion) which the phone company will send me an amount generated statement to which i will then invoice them the amount.

I gather i need a bank account in the companies name and cannot use my personal account, is this true?. If so are there any basic business accounts i can apply for without a overdraft etc for people with a poor credit rating?.
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Comments

  • lovinituk
    lovinituk Posts: 5,711 Forumite
    1,000 Posts Combo Breaker
    Why not use your name as the business name and then it won't matter if you use a personal account.
  • Orville
    Orville Posts: 1,906 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker PPI Party Pooper
    lovinituk wrote: »
    Why not use your name as the business name and then it won't matter if you use a personal account.

    Would that cause any probs with HMRC?.
  • lovinituk
    lovinituk Posts: 5,711 Forumite
    1,000 Posts Combo Breaker
    Orville wrote: »
    Would that cause any probs with HMRC?.
    If you register with HMRC as a Sole Trader then you register in your own name anyway - as a Sole Trader you are the business. HMRC won't be interested in what type of bank account you use. There is no legal requirement to have a business bank account for business - its just bank policy.
  • richt71
    richt71 Posts: 946 Forumite
    Orville wrote: »
    Would that cause any probs with HMRC?.

    Yes. They could use everything in your personal account as income related unless you can provide lots of proof otherwise. Could be a real night mare TBH. So definitely need another bank account for business if possible.
  • Orville
    Orville Posts: 1,906 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker PPI Party Pooper
    lovinituk wrote: »
    If you register with HMRC as a Sole Trader then you register in your own name anyway - as a Sole Trader you are the business. HMRC won't be interested in what type of bank account you use. There is no legal requirement to have a business bank account for business - its just bank policy.

    OK so what happens then if the bank cotten onto that and stop me from using my personal account..? ( Sorry just trying to cover all areas)

    What about paypal?. Would that be a viable option..?
  • lovinituk
    lovinituk Posts: 5,711 Forumite
    1,000 Posts Combo Breaker
    Orville wrote: »
    OK so what happens then if the bank cotten onto that and stop me from using my personal account..? ( Sorry just trying to cover all areas)
    Yes its a risk and they could ask you to stop or even ask you to take your business elsewhere. I've been using a separate personal account solely for my business for over 2 years with no problems.
    Orville wrote: »
    What about paypal?. Would that be a viable option..?
    The only way the phone company could pay you via Paypal would be if they used a credit card and its unlikely they would do that. Also you would be charged a fee each time you received a payment. If the phone company pay you by cheque or bank transfer then you will have no fees to pay.
  • lovinituk
    lovinituk Posts: 5,711 Forumite
    1,000 Posts Combo Breaker
    richt71 wrote: »
    Yes. They could use everything in your personal account as income related unless you can provide lots of proof otherwise. Could be a real night mare TBH. So definitely need another bank account for business if possible.
    As a sole trader, all your finances are related to you as an individual. Any other income going into the personal account would have to be declared alongside the business earnings anyway.

    I agree that having a separate bank account (another personal account will do) makes things easier when it comes to book keeping and completing a tax return, but its not impossible to run it all from one account.
  • Orville
    Orville Posts: 1,906 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker PPI Party Pooper
    Ok so do you guys know of any Basic types of account i could apply for..?
  • lovinituk
    lovinituk Posts: 5,711 Forumite
    1,000 Posts Combo Breaker
    Orville wrote: »
    Ok so do you guys know of any Basic types of account i could apply for..?
    Not sure - you may want to ask this on the Debt Free Wannabe sub forum as they will probably have more knowledge for someone in your situation.
  • Orville
    Orville Posts: 1,906 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker PPI Party Pooper
    lovinituk wrote: »
    Not sure - you may want to ask this on the Debt Free Wannabe sub forum as they will probably have more knowledge for someone in your situation.

    ?? Which sub forum..?
This discussion has been closed.
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