Starting a small business - Bank account advice needed

Wywth

cc95597 wrote: »

As stated, my point is that I am very unlikely to get a business account. This is why I am seeing if there is a way to start a small business without the need to open a specific business account?

Try your own bank. As I said, if they discover you using your personal account for business purposes they'll probably change it to a business account anyway.

Or they'll suspend it, so you'd be best of asking than using the personal account against the agreed terms.

Have you looked at NatWest Foundation Current Account - a business account for those with poor credit history
http://www.natwest.com/business/products/business-current-accounts/foundation-current-account.ashx#tabs=section1

Wywth

lazer wrote: »

I don't think a self employed construction worker really needs a business plan TBH.

Has he explained that to the bank? :cool:

Fail to plan = plan to fail

lazer

Wywth wrote: »

Has he explained that to the bank? :cool:

Fail to plan = plan to fail

It was a case of the contractor looking self employed workers - so off he went and went S.E to get a job.

So it's not really really failing to plan, as it was making the best of the circumstances and doing whatever it takes to get a bit of work.

Wywth

lazer wrote: »

It was a case of the contractor looking self employed workers - so off he went and went S.E to get a job.

So it's not really really failing to plan, as it was making the best of the circumstances and doing whatever it takes to get a bit of work.

Are you sure that isn't just disguised employment?

Or is your husband working under the CIS which is more usual in the construction industry?

CIS only applies to construction workers who are self-employed - it doesn't cover employees. So if your contract is a 'contract of employment' then you're an employee and CIS doesn't apply to that contract. Instead you'll pay any tax you owe through PAYE (Pay As You Earn).

Employment status - whether you're self-employed or an employee - is covered by general law. Your own employment status will depend on the terms of each engagement you undertake. It's quite possible to work as a self-employed subcontractor on one contract and then as an employee on the next.

When you're working for someone else, it's important to know whether you're working as a self-employed contractor or as an employee. The HMRC's website has guidance to help people decide their employment status, including an employment status indicator tool.

http://www.hmrc.gov.uk/cis/intro/con-or-sub.htm

Even if he somehow proves self employment, yet only works for one company and gets paid ay once a month, I doubt the bank would consider that as being used for business as it's effectively just a wage he's bringing home.

Worth double-checking with the bank though, as he doesn't want to fall fould of the terms and conditions

If he really is self employed, he really should have produced a business plan (simple as it may be) before embarking on such a venture.

lazer

He is indeed CIS registered and as well as working for whatever contractor needs him he does some homers and other bits and pieces.

(Don't worry - I'm an accountant I know the rules)

Wywth

lazer wrote: »

He is indeed CIS registered and as well as working for whatever contractor needs him he does some homers and other bits and pieces.

(Don't worry - I'm an accountant I know the rules)

Even more the surprising you don't realise the importance of a business plan then

lazer

Wywth wrote: »

Even more the surprising you don't realise the importance of a business plan then

I do realise the importance of a business plan - but think the banks should be sensible enough to not need one from everybody.

How exactly are you mean to do a business plan for self employed construction worker who will take whatever work he can get - there is no way to calculate even slightly accurate projections as he could get work for 2 weeks, then none for 4 weeks or nothing for months etc.

The business plan would be a simple one line statement

xxxx xxxx is a fully qualified xxxxxxxxx and has over 10 years experience in this field having worked on a number of different constructions sites and has experience in x,y & z.
Due to the recession and being made redundant, I have set up my own business T/A xxxxx xxxxx xxxxx.

I intend to offer my services to anyone looking for a xxxxxxxx, and build up a business.

We had nothing to lose by him going self employed, he had no work, and lots of people looking construction workers wanted self employed, and a number of commercial premises were looking for him to do a bit of work and for tax purposes he therefore needed to be self employed to declare the income.
If a PAYE job comes up - he would happily take it.

As much as a business plan is a good idea - it's not relevant here at all IMO (and professional) opinion - the only reason for one would be to get finance which he isn't looking, just a bank accoutn in the Trading as name to cash cheques!

Wywth

lazer wrote: »

I do realise the importance of a business plan - but think the banks should be sensible enough to not need one from everybody.

How exactly are you mean to do a business plan for self employed construction worker who will take whatever work he can get - there is no way to calculate even slightly accurate projections as he could get work for 2 weeks, then none for 4 weeks or nothing for months etc.

The business plan would be a simple one line statement

xxxx xxxx is a fully qualified xxxxxxxxx and has over 10 years experience in this field having worked on a number of different constructions sites and has experience in x,y & z.
Due to the recession and being made redundant, I have set up my own business T/A xxxxx xxxxx xxxxx.

I intend to offer my services to anyone looking for a xxxxxxxx, and build up a business.

We had nothing to lose by him going self employed, he had no work, and lots of people looking construction workers wanted self employed, and a number of commercial premises were looking for him to do a bit of work and for tax purposes he therefore needed to be self employed to declare the income.
If a PAYE job comes up - he would happily take it.

As much as a business plan is a good idea - it's not relevant here at all IMO (and professional) opinion - the only reason for one would be to get finance which he isn't looking, just a bank accoutn in the Trading as name to cash cheques!

You start by claiming "I do realise the importance of a business plan..." but then go on to demonstrate otherwise :cool:

lazer

Wywth wrote: »

You start by claiming "I do realise the importance of a business plan..." but then go on to demonstrate otherwise :cool:

The importance of a business plan depends on the reason for starting a business IMO.

I just don't know where to start on a business plan (For a business with no plan - except look for work and take anything!).

Any pointers?

Atidi

lazer wrote: »

The importance of a business plan depends on the reason for starting a business IMO...

The reason for starting a business should only be based on a realistic & viable business plan ... IMO :money: