Best basic free personal account for business?

GlynG

I'm self employed as a sole trader and want to set up separate basic free bank account for my business income this new tax year as it'll be a lot easier should the tax people ever want to see it. It'll basically just be a holding account for money to sit in very temporarily when I get paid and then I'll shift the money out to my personal account.

I don't want or need a business account but it might be safer to use a personal current account where using it for business doesn't break the terms. Apparently it does with some but not others?

Separately I want to occasionally switch my personal account plus direct debits from bank to bank to get the free money offers. I'd rather leave this prospective business account long term and if possible I'd would rather go for a bank that doesn't go in for these offers, so I can take advantage of them with my personal account instead.
I need online banking but don't want an overdraft. Any suggestion(s) please?

mgdavid

Accounts are *either* personal or business.
I've never heard of a personal account that can be used for business.
However I've seen many posts on this forum where people's accounts have been stopped, frozen, closed etc because they've used personal accounts for business.

eskbanker

mgdavid wrote: »

Accounts are *either* personal or business.
I've never heard of a personal account that can be used for business.

It's the piece at http://www.moneysavingexpert.com/banking/small-business#acc that suggests it may be possible, but unhelpfully not listing any examples:

Step 1: Use a personal account if you can

If you are a sole trader (not a limited company), then you may be able to use your normal bank account for your business, with all the better terms that involves (though check your terms & conditions - some banks won't allow this).

It does list some cheap business accounts there though....

Zanderman

GlynG wrote: »

I'm self employed as a sole trader and want to set up separate basic free bank account for my business income this new tax year as it'll be a lot easier should the tax people ever want to see it. It'll basically just be a holding account for money to sit in very temporarily when I get paid and then I'll shift the money out to my personal account.

I don't want or need a business account....

You might not want one but, if you want to be working within the bank's t&c, you do need one.

They can be a bit of a hassle to apply for, as the bank wants so many details, and they can seem costly - but they are usually necessary and many banks have a fee free trial period, some up to 2 years.

GlynG

eskbanker wrote: »

It's the piece at http://www.moneysavingexpert.com/banking/small-business#acc that suggests it may be possible, but unhelpfully not listing any examples:

Yeah, it read that just before posting my question due to the lack of examples.


I'm 100% definitely not opening a business account. I'll open a separate personal account and take the risk. As a sole trader it's in my name and I'll only be paying in or out 1-2 transactions a week. If I have to break the T&Cs to do so then I will try it. If the bank objects I can always open a different account elsewhere.

jonesMUFCforever

What is the difference between opening a business account today and getting up to 2 years free of charges or opening a new personal account every time you get caught out?
Indeed why bother - just put it into the personal account in the first place?

mgdavid

GlynG wrote: »

Yeah, it read that just before posting my question due to the lack of examples.


I'm 100% definitely not opening a business account. I'll open a separate personal account and take the risk. As a sole trader it's in my name and I'll only be paying in or out 1-2 transactions a week. If I have to break the T&Cs to do so then I will try it. If the bank objects I can always open a different account elsewhere.

If that's how professional your approach to business is - I'm speechless, it beggars belief.

trailingspouse

Business bank accounts aren't expensive!!

Ours is with Barclays, we got the first year free, then it was £5.50 a month, then it increased to (wait for it...) £5.52 a month. To be fair, it actually went up to £6.50 but they then applied a 'loyalty bonus' of 98p.

If your business isn't able to stand a £6.50 monthly fee, it's time to pack up and go and do something else.

I realise there are additional charges for some things - but if you don't need those things, there's no charge for them (all our transactions both in and out are either electronic or via the business debit card).

mt99

There is certainly nothing illegal about using a personal account as a business account at worst it will be against the banks terms and conditions and they could suddenly and without warning suspend and close your account

for this reason if you do decide to use a personal account as a business account I would recommend you use a completely separate bank - that way your own personal account will not be compromised

mt99

one option is a sbiuk savings account it comes with a mastetcard and t&c allow individuals firms companies etc to open it

it pays interest on any balances over £500 you can operate it online etc etc it might be something you could look at

https://www.sbiuk.com/footer/bottomfooter/general-terms-and-conditions

jonesMUFCforever

mgdavid wrote: »

If that's how professional your approach to business is - I'm speechless, it beggars belief.

I wanted to say that but you will probably be yellow carded now - take care.