Business Bank Account Rejection..

Orville

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?.

lovinituk

Why not use your name as the business name and then it won't matter if you use a personal account.

Orville

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

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

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

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

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

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

Ok so do you guys know of any Basic types of account i could apply for..?

lovinituk

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

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..?