Sole Trader & Bank Account

mrsmoneyworries

Can a Sole Trader have just a normal Current Account, instead of a Business Bank Account?

I can't remember where I read it, but i'm sure it's possible.

Any help/advice appreciated.

polymaff

mrsmoneyworries wrote: »

Can a Sole Trader have just a normal Current Account, instead of a Business Bank Account?

I can't remember where I read it, but i'm sure it's possible.

Any help/advice appreciated.

If by "normal" you mean Personal - then, assume not. You need to study the T&Cs of the account you have in mind to be sure, but most, if not all, say no - and if you try it on, you're likely to get your account closed.

That said, it depends upon what kind of sole trader you are. There's a world of difference between someone occasionally depositing a cheque and someone regularly turning up at the counter with carrier-bags full of small change.

mrsmoneyworries

polymaff wrote: »

If by "normal" you mean Personal - then, assume not. You need to study the T&Cs of the account you have in mind to be sure, but most, if not all, say no - and if you try it on, you're likely to get your account closed.

That said, it depends upon what kind of sole trader you are. There's a world of difference between someone occasionally depositing a cheque and someone regularly turning up at the counter with carrier-bags full of small change.

I do mean 'personal'.....sorry, I wasn't very clear.

I would never have suggested it, had I not thought it could be done - I really did see something on a forum somewhere. I just can't remember which one.

I had better check the T&C's of the account.

agrinnall

Of course it can be done, the real question is whether doing it as contrary to the T&Cs, with supplementary questions "will they find out?" and "what happens if they do?". As polymaff has advised and you have agreed to do, studying the T&Cs of the chosen account will give you the main answer, and probably the answer to the second supplementary, but the first supplementary will probably depend partly on luck and partly on how you operate the account.

bigadaj

It's probably worth having two accounts with different institutions at least.

Unless you are doing large numbers or particular types of transactions then it's unlikely up you have any problems. However a second account would at least mean you would have access if there were issues, as well as the fact that bank systems can go wrong and a secondary current account is useful for many.

Not forgetting the benefits of having more than one current account of course!

polymaff

bigadaj wrote: »

It's probably worth having two accounts with different institutions at least.

Unless you are doing large numbers or particular types of transactions then it's unlikely up you have any problems. However a second account would at least mean you would have access if there were issues, as well as the fact that bank systems can go wrong and a secondary current account is useful for many.

Not forgetting the benefits of having more than one current account of course!

Gosh! I wonder how many accountants would be happy to engage with a sole trader with multiple bank accounts.

bigadaj

polymaff wrote: »

Gosh! I wonder how many accountants would be happy to engage with a sole trader with multiple bank accounts.

Well keeping personal and business spend separate would be useful.

mrsmoneyworries

agrinnall wrote: »

Of course it can be done, the real question is whether doing it as contrary to the T&Cs, with supplementary questions "will they find out?" and "what happens if they do?". As polymaff has advised and you have agreed to do, studying the T&Cs of the chosen account will give you the main answer, and probably the answer to the second supplementary, but the first supplementary will probably depend partly on luck and partly on how you operate the account.

I have done it again - I should have asked if I could legally do it.

I cannot find the T&C's of the account, so may have to ask the bank to send me them again.

mrsmoneyworries

bigadaj wrote: »

It's probably worth having two accounts with different institutions at least.

Unless you are doing large numbers or particular types of transactions then it's unlikely up you have any problems. However a second account would at least mean you would have access if there were issues, as well as the fact that bank systems can go wrong and a secondary current account is useful for many.

Not forgetting the benefits of having more than one current account of course!

Now I have been reminded, there is another personal account and I think that could be used for non-business money.

It's regular money coming in/out, so there is no way I want to risk getting into trouble by using a Personal account as a Business account.

mrsmoneyworries

bigadaj wrote: »

Well keeping personal and business spend separate would be useful.

I definitely think this is the way to go.

bigadaj

mrsmoneyworries wrote: »

I definitely think this is the way to go.

Well you'll upset polymaffs accountants if you do!