Different bank account for sole trader?

antonyg18

Hi. I hope I posted this in the right place.

I've been self employed sole trader for the past 5+ years and always used my personal bank account for everything. But this means I have to keep receipts for everything to give my accountant. Somebody I know uses the Natwest business one card so all he does is uses that card for everything business related. And set it up so it gets repaid in full at end of every month. And then just gives the accountant the statements from that card.

So my question is, can I just open a normal credit card in my business name? And use that in the same way and set it to be payed off in full every month? And which would be best?

Or will it be best to open another bank account in a business name(if I can do that)? And which would be best?

And also the Natwest business one card I'm not sure if you get charge for the card. As I've read that business accounts can charge a lot.

Thank you for any help.

HappyMJ

For simplicity you really should have a business bank account. A credit card would help with cash management but it's not necessary.

antonyg18

I read on MSE website that I should use a personal bank account if I can as they can charge a lot?

So would I be able to open a credit card in a business name but the name won't be resisted as I'm a sole trader?

bigadaj

If your managing to run the business through a personal current account then the easiest thing might be to open up a second current account and put business through one and persoanal though the other, it would make things simpler and easier to track.

londonTiger

i have a ltd company and a sole trader (ltd company is a a startup and i reinvest every penny back into the business, sole trader is what I live off).

Sole trader = freelance work that I do in evenings, weekends and inbetween quiet moments of my company.

I have a normal current account for the sole trader stuff. You dont really need to have a business account. A business account is free initially for the first year and then they charge £20+ a month. Completely pointless as the business bank account is designed for actual business and not sole trader.

The ONLY reason why you may want a business bank account for your sole trader work is probably if you want your bank account to be named after a busienss and not in your name. To appear more professional. But it's hardly necessary.

antonyg18

Thank you for the reply. I think a credit card will be best? If I set it to be paid in full every month and just use that for everything, petrol, tools etc. then I don't have to worry about transferring money around?