business bank account

boo80

Can anyone tell me if I need a business bank account? I'm currently on Maternity leave but still have to pay the ridiculous £5.50 a.month charge plus when I do.use it i have to pay for each transaction. If I close the account could I do it all through my personal account? If I close the account I won't be able to open a new one due to defaults on my credit history...

CKhalvashi

Are you Ltd, or sole trader?

If Ltd, you need a separate company account.

If sole trader, you can do it through your personal account, but I'd wager odds on the bank closing the account, as it will be against the terms and conditions.

CK

boo80

Close my personal account? I don't have a high turnover, I don't even earn enough to pay NI, do you think they'd be that bothered?

Thanks for your reply. Xx

Laurajo_2

I doubt they'd close your personal account. There is no legal requirement for a sole trader to have a separate account, and I know a lot of 'one man bands' don't bother.

Atidi

I doubt they'd close it too.

If you use a personal account for business purposes, and such use is against the terms & conditions of use of such account (as it so often is) then if a bank discovers it is being used for business purposes they usually simply transfer it to a business banking tariff.

Much better than closing the account when they can charge you for using it, for not only your business banking but also each and every one of your personal transactions.

Atidi

And what on earth have you gone and done in the last 6 months to trash your credit history so much that you wouldn't be able to obtain a new bank account? :huh: :eek:

Only 6 months ago I remember you were positively considering of getting a bigger house & mortgage.
https://forums.moneysavingexpert.com/discussion/4631785

Savvy_Sue

If you've already got a biz a/c, have you looked around to see if you could do better elsewhere? If you've got a good history on that, it might be possible, or go for a 'basic' biz a/c if it does what you need.

Do check with the bank whether you're on the best tariff for your biz needs as well, and whether your transactions are as cost-effective as possible. There may not be a lot of choice but it is worth checking.

boo80

Thanks Sue. My problem atm is I'm not using the account as I'm not working, but still getting the charges on the account. I wonder if I ask nicely if they'll freeze the account?

Atidi, we'd still like to move to a bigger house and it is something we are working towards. The defaults are not new, and if you really do need to know I'm not on our current mortgage as we got a better rate with just OH as he has a fab credit history