Child Minder Business Account

Keith

jonesMUFCforever wrote: »

OP you want a business account without a fee - fair enough but would you look after my kids as I don't want to pay the fee??

Yes business bank charges are tax deductable.

I'd rather not pay the fee as I find it rather ridiculous that a small business with a 12k turnover is grouped in with much rather companies paying the same set of fees.

However, it looks like HSBC have a good deal available to her:

Start-ups with a turnover up to £2m get 18 months' free business banking

Caladan wrote: »

If there are going to be lots of cheques and/or cash payments in and out of the account though then I'd argue on the side of the bank and say it should be a business account. Not to mention the fact it should actually be a business account anyway.

More likely to be payment in from parent, national insurance out, payment to personal account, any tax payment that is due and perhaps a few purchases for the business per month.

InsideInsurance

Keith wrote: »

I'd rather not pay the fee as I find it rather ridiculous that a small business with a 12k turnover is grouped in with much rather companies paying the same set of fees.

However, it looks like HSBC have a good deal available to her:

To carry on the analogy, some kids take a lot of looking after, others don't and yet you charge the same to look after them and simply band it based on the number of kids.

Banks are the same, they will have SME, commercial and corporate rate bands but within that band each pay broadly the same.


Most banks offer 12-24 months free banking for new businesses or switchers in the SME space. It ultimately comes down to the amount of effort it takes to switch accounts -v- the cost.

Metro Business has a free account with certain conditions attached. Of cause they are a new company so undoubtably trying to do a land grab and most likely will end the free offer at some point in the future once they decide they've balanced the book size with the lost revenue

System

Cater Allen did/do offer limited free banking, assuming your not going to pay in cash as do RBS Business Banking Direct.

Caladan

Keith wrote: »

I'd rather not pay the fee as I find it rather ridiculous that a small business with a 12k turnover is grouped in with much rather companies paying the same set of fees.

However, it looks like HSBC have a good deal available to her:





More likely to be payment in from parent, national insurance out, payment to personal account, any tax payment that is due and perhaps a few purchases for the business per month.

I'd say it's all a matter of if somebody notices or not. If they do - you're in breach of T&Cs and they're well within their rights to close the account. Several banks have good offers for startups, as InsideInsurance said, between 12-24 months free banking. Switchers don't tend to get such a long period anymore so you may find that once you do go the business route you either have to switch regularly or settle with someone you actually like. £5-7 a month doesn't really seem that high to me.