HSBC Now charging for business bank accounts

straygoat

I'm a contractor and have used HSBC for a while as they offered free business banking. That worked out fine for me, but now they are introducing a £5.50 per month fee. I'm not too happy about that.

Does anyone know of any free business bank accounts that are suitable for contractors? I know I can switch to Barclays for 2 years and get free banking, but I wondered if there are any other options?

Thanks

paul2345

RBS Business Banking Direct

WarrenG_2

There a few threads now about this.

Personally I'm looking at the Free Business Banking with the Co-Op as a member of the FSB.

As a contractor you may find other benefits via the FSB useful?

straygoat

Thanks, I will take a look at them both. What is FSB?

EarthBoy

Federation of Small Businesses.

http://www.fsb.org.uk/

spenderdave

The subject line is misleading. HSBC have always charged for their business accounts. Business Direct is a relatively recent addition that was free for online transactions but charged for cheques counter transactions. It has never been 'free'. The new charges make it still cheaper than their normal small business tariff if you do everything online, but not if you need to pay in cash and cheques.

I was on their small business tariff for many years but moved to Business Direct a year or so as my business actity had markedly reduced. Now is the time to close the account for good.

dazbear

Royally annoyed about this.

I moved from Lloyds to HSBC in January when they starting asking for £60 a year to manage the account.

The sell was "free business banking for life" at the time, as Santander were doing a similar offer.

When I rang HSBC I specifically asked if the "no monthly fee" was a permanent feature. I was categorically told that they couldn't introduce a monthly fee on this account as wasn't part of the pricing structure. "It would be free for the life of my account" - I have it written down in my notes. I went ahead.

Of course by stopping Business Direct and moving me to Electronic Tariff, I suppose their loop-hole will be that the life of the account has ended and this is a new one :os

Will be ringing them on Monday!

I now feel mis-sold!

jonesMUFCforever

Claim the charge back against your tax as a legitimate business expense - hey presto you have free banking again.

dazbear

Putting it through as an expense would only mean getting tax relief on it - it wouldn't get it all back - only 20%

Not sure its the money here - its the principal. When is a promise of a life time free banking not a promise at all....

jonesMUFCforever

dazbear wrote: »

Putting it through as an expense would only mean getting tax relief on it - it wouldn't get it all back - only 20%

Not sure its the money here - its the principal. When is a promise of a life time free banking not a promise at all....

Are you sure ? I would have thought his accounts would read income minus acceptable expenses to give a figure which would then be taxed.

dazbear

Yes, but the tax man doesnt give me the £60 back, just tax relief on it which equates to a reduction in corporation tax of £12.

As I own the company, I still have to pay the £48