Do I really need a business bank account?

NealJ

I have just set up a limited company for myself to provide IT services. I already have an addtional personal bank account open that I don't use and could use this as a dedicated bank account for the business. Do I have to have a "business bank account" where they charge per transaction?

Dird

I'd just use your 2nd personal account (solely for business expenses/payment etc) and see if the bank notices

TheTracker

It's against the Ts&Cs to use it in this way.

Get a business account. It's free for 18+ months with most banks and they don't charge per transaction.

jimjames

NealJ wrote: »

I have just set up a limited company for myself to provide IT services. I already have an addtional personal bank account open that I don't use and could use this as a dedicated bank account for the business. Do I have to have a "business bank account" where they charge per transaction?

How will you accept cheques paid to ABC Ltd if you have no account?

NealJ

Thanks for all the tips. I doubt the bank would notice, but it is a fair point that I would need to accept cheques, etc. that I would want to be made out to the business, not a person. Still, it is frustrating as there will probably be less transactions going through the business account than my current account and the terms aren't that great!

I noticed that after the free period Barclays charge per transaction. I will keep shopping - perhaps use MoneySavingExpertt!

AJ1982

I use Cater Allen.

To stress, your business need a bank account. They are two separate legal entities!

In terms of will they notice, im a contractor, and agencies ask me for proof the account number is a business one, usually checkbook stub or bank statement.

polymaff

NealJ wrote: »

Do I have to have a "business bank account" ?

No YOU don't - but the Limited Company does, if you are to have any credibility.

Get used to the idea that the limited company is an individual entity.

Yorkshire Bank appear to offer 25 months of zero service charges. That is probably the best you'll find at present.

colsten

NealJ wrote: »

I doubt the bank would notice

So did many others that came on here crying that their accounts had been closed at short notice.

JuicyJesus

polymaff wrote: »

No YOU don't - but the Limited Company does, if you are to have any credibility.

Get used to the idea that the limited company is an individual entity.

This is entirely right.

OP - The limited company is effectively a person in its own right, and needs its own bank account. Money owned by the company doesn't belong to you, it belongs to the company, which is owned and controlled by you.

gropinginthedark

The problem I had getting a business account was that all the banks were quoting 6-8 weeks for the process. The one exception was Barclays who when I asked how long to open quoted 2 weeks but further down the line that proved to be 2 weeks after a successful initial interview and they had no interview slots available until a month's time - so 6 weeks again.

I got Cash Plus as a short-term expedient but can't accept or write cheques. Longer term I did get an a/c with HSBC but when my 18 month free introductory period runs out it's going to get expensive even if I maximise use of CashPlus but have to keep HSBC. I'm using the 18 months to try to get my customers used to the idea of using BACS (maybe PayPal as an alternative for those that can't. Alternatively maybe I can find an affordable alternative.

Owain_Moneysaver

JuicyJesus wrote: »

OP - The limited company is effectively a person in its own right, and needs its own bank account. Money owned by the company doesn't belong to you, it belongs to the company, which is owned and controlled by you.

And putting the Ltd Co's money in your personal account can lead to all sorts of legal and tax complications.