Can anyone explain - bank insist on two separate business accounts.

CKhalvashi

pooch wrote: »

I think you probably got it right

I just looked the the 2011 tax return (the last paper copy I got) and it definitely says "Fill in a separate Self-employment page for each business and say how many sets of pages you are completing"

I very much doubt it has changed since, but I don't know for sure. I'm not self employed.

I've never had more than one 'self employed business' at any one time, so I was going from memory there.

Thanks for pointing that out, however as stated, it may not be as simple as two separate areas.

CK

Wywth

InsideInsurance wrote: »

Certainly with the online form it is optional if you enter them separately or roll them into one.

The OP however doesnt have two businesses, he is a sole trader that happens to provide more than one type of services to his clients. Legally there is only him as he is a sole trader and so purely his decision how many bank accounts he has, subject to the banks T&Cs, but HMRC can ask to look at all of them because they are all "his"

My online tax return for 2012 says exactly the same as pooch posted for his paper 2011 return. (well almost the same wording as makes no difference here)


Has it changed for 2013? I've not done mine yet.

How would you differentiate a self employed, sole trader having one business supplying two entirely different services and one that has two businesses then? :huh:

Yes, I agree, the taxman will certainly be interested in everything regarding the individual's finances.

colino

They seem to be chasing fees and I wouldn't entertain two accounts for one business (bank will be happy but it just piques HMRC curiosity). Main point that I would make is NOT to have your personal account with the same bank as your business account(s).

Mistral001

colino wrote: »

Main point that I would make is NOT to have your personal account with the same bank as your business account(s).

For what reason?

CKhalvashi

Mistral001 wrote: »

For what reason?

Offsetting being one of them.

With a different bank, it becomes easier to find a little breathing space, should it go wrong.

For the purpose of transparancy, please bear in mind that I don't mean debt avoidance, I mean paying every penny back with interest.

CK

nomunnofun

Wywth wrote: »

My online tax return for 2012 says exactly the same as pooch posted for his paper 2011 return. (well almost the same wording as makes no difference here)


Has it changed for 2013? I've not done mine yet.

How would you differentiate a self employed, sole trader having one business supplying two entirely different services and one that has two businesses then? :huh:

Yes, I agree, the taxman will certainly be interested in everything regarding the individual's finances.

You need to complete a set of self-employment pages for EACH business, and always have done in the same way that, if you had multiple employments, an employment page would be required for each. It actually asks you to state the number of businesses on the main return below,

http://www.hmrc.gov.uk/forms/sa100.pdf

Brassedoff

Why don't you just open an A & B account? When I open accounts for clients who may move quicker than their plan suggests, I open an A & B, this can then convert into the aim you are trying to achieve without the current headache.

Does that help?

w211

OuterNet wrote: »

I am a freelance sole trader, and for the first few months was using my personal bank account to receive money from customers. Now things have started to get more regular, and my accountant advised me to set up a separate bank account for the business to make everything clear and separate when it comes to HMRC and accounting.

If you only receive income from your self-employed job as a freelance sole trader, and nowhere else, I don't see why you need a separate business account anyway, since all incomings are from that job.

Unless you got significant income from elsewhere (such as investments, or a PAYE job), even then I don't see why the accountant can't work out where each income comes from - you could just write it beside each entry on the bank statements.

InsideInsurance

Wywth wrote: »

Has it changed for 2013? I've not done mine yet.

How would you differentiate a self employed, sole trader having one business supplying two entirely different services and one that has two businesses then? :huh:

Its obviously changed since I last did one. I am not self employed any more as I incorporated into a Ltd and the company accountant does my returns these days.

At a guess, trading names? Legally there is only you irrespective of how many names you use or the variety of services you may offer under one or more names.

Mistral001

The reason the bank wants two accounts it would seem is because of the word "and" in the name of the business. If it was "farming AND hairdressing" , I see how the bank might want two business accounts, but not with "research and management".

The Op needs to see someone higher up in the bank and maybe they will understand that it is not really two different businesses