self employed pt time cleaning-do I need a business bank account?

melissa'smoney

Hi all,
I'm not sure If I need one?
I've recently become self employed and set up cleaning. I'm only working 3 days a week which is currently 16 hours a week.
Do I need to have a business bank account, currently customers are paying into my first direct account (only in second week of working)

Any advice would be appreciated xx

Aquamania

melissa'smoney wrote: »

Hi all,
I'm not sure If I need one?
I've recently become self employed and set up cleaning. I'm only working 3 days a week which is currently 16 hours a week.
Do I need to have a business bank account, currently customers are paying into my first direct account (only in second week of working)

Any advice would be appreciated xx

There is no legal requirement to have a business bank account.

BUT...

You will probably be in breach of the terms you agreed with your bank regarding your personal account if you use it for business purposes.

I think these are the terms regarding your account, but you should check yourself

For accounts opened before 01 October 2015

The product/service you have with us should not be used for business purposes. No third party will have any rights under the Terms.

http://www1.firstdirect.com/content_static/pdf/account_terms_1114.pdf (towards bottom of page 2)


For an account opened since 01 October 2015

You must not use your account for business purposes.

http://www1.firstdirect.com/content_static/pdf/account_terms_1015.pdf (near top of page 14 - General Terms)

melissa'smoney

Aquamania wrote: »

There is no legal requirement to have a business bank account.

BUT...

You will probably be in breach of the terms you agreed with your bank regarding your personal account if you use it for business purposes.

I think these are the terms regarding your account, but you should check yourself

For accounts opened before 01 October 2015
http://www1.firstdirect.com/content_static/pdf/account_terms_1114.pdf (towards bottom of page 2)


For an account opened since 01 October 2015
http://www1.firstdirect.com/content_static/pdf/account_terms_1015.pdf (near top of page 14 - General Terms)

Thank you for your time in applying, I will read above x

RobsterUK

Apart from what you have to or are allowed to do, I'd say having a business account or at least a separate personal account that you only use for your business is a very very good idea. That way it's much easier to keep track of your finances and keep accounts for your business and much easier to figure out how much money you're actually making. Otherwise things are likely to get quite confusing.

melissa'smoney

Thanks all.
I spoke to first direct and they are happy for me to use my current account. I have a separate savings account with sort code and acc. That I'm going to use and keep things seperate.
Thank you x

leveller2911

I've run a vat registered business from a current account for 20yrs and although my bank (HSBC) tried to get me to switch over to a business account I refused.


A business account will cost money to run after the initial 12 months so my advice is stay on a current account.

Open another current account somewhere and as soon as you get paid by a client put some income tax money in the other account so you know you will have enough money at the end of the year to pay tax, if you don't have to pay (which you probably won't) then you have a nice little sum to use the following Christmas.

One question, why only 16hrs a week?. When you're self employed you decide on how many hours you work .

Spuggy200

I'm self-employed and my clients dictate how many hours I work......doh I'm doing it all wrong