Going Self Employed

smudge09

Hi guys, this is my first post here :j

Im looking to go self employed next year and i just have a few questions maybe you guys could help me with ?

is there anywhere to get grants for setting up a new business ?

Is it worth setting up a business bank account or just using the normal one i have now ?

Thank you for your time and your help

TrickyWicky

You need a seperate bank account if nothing else to stop HMRC trying to con you out of more money.

Won a few hundred on the lottery and paid it in? HMRC will almost certainly see that as takings instead of cash winnings (which are tax free) and as you'll have no proof its their word against yours.

With a seperate business account it's all seperate.

PlutoinCapricorn

A limited company needs a new bank account. A sole trader can sometimes use their existing bank account depending on what sort of work they are doing: a sole trader IS the business.

If you are going to use a "trading as" name, you will need a separate bank account because the payee will be different from your own name. You will also need a separate account if you are paying in a lot of cash or have a high volume of transactions i.e. are obviously running a business. Banks do not allow you to use your personal account for selling huge numbers of items on eBay or for paying in the takings from a burger van for example.

If you are a consultant on the other hand, you can get away with using your personal account - I do this myself - as the account looks much the same as it would if you were an employee. One or two payments coming in per month are nothing to worry about.

So the answer depends partly on how active the account would be and partly on whether you will trade under your own name or as "Sparkling Windows" for example.

There may be grants for people aged 18-24, but to get even a loan you may be expected to invest some of your own money in the business.

phill99

I'm self employed and have. Separate business account. It just makes things so much easier. If you don't need branch services, look at the Santander business account. It's a postal account but totally and permanently free. You deposit cash via the Santander cash machines and send cheques by post (they supply all freepost envelopes). You can still call them about your account, you just don't have face to face meetings etc.

In terms of grants, try your local authority, and if under 25 try the Princes Trust. Otherwise, it's quite difficult.

smudge09

Thank you guys,that's brilliant information, I will get a business account.

Thanks again

imatt

Grants can be a minefield! A lot depends on where you live. Some areas such as Leeds where I live has seen an expansion in its finacial sector over the past 25 years, becoming the biggest finacial centre in Britain outside the City of London.

As such it is generally harder to get business grants compared in Leeds compared to areas in S.Yorkshire such as Sheffield, Rotherham and Doncaster which have seen massive layoffs and deprivation over the past 30+ years due to pit closures and the decline in the steel industry.

With the current ecnomic climate, grants are going to be even tougher irrespective of where you live. Some areas are aloways going to be easier / tougher than others.

When looking at grants a few years ago, one of the conditions put to me by a small biz advisor was that I'd have to be employing someone from the off. No all business startups are able to be in this position.

I am now starting another business veture, slowly but surely. I haven't even bothered looking into grants this time round!

mr_pjr

phill99 wrote: »

look at the Santander business account. It's a postal account but totally and permanently free.

Where did you find this account?

The only Santander account I can see says free for 12 months then £7.50 a month.

phill99

mr_pjr wrote: »

Where did you find this account?

The only Santander account I can see says free for 12 months then £7.50 a month.

When I opened the account it was free. They tried to bring in a £7.50 monthly charge for existing customers, but there was such a backlash against it, they suspended it.

However, it may be that for new customers they have bought in the £7.50 charge. It may be though that the £7.50 monthly charge works outa lot lower than other banks who charge per transaction.