Can I get a separate bank account for freelancing?

jimmymoon

I work as a video editor for a company but I'm hoping to start finding some freelance work on the side to get some extra money. I was initially freelancing with the company I was working with before I was working permanently, but felt weary of having my own bank details on my invoices rather than a separate account just for such a thing.

I'm a bit of a novice with banking in all honesty. The most adventurous thing I've ever done was switch banks after being with HSBC since I was a kid. So here's what I'm looking to find out...

- Is it plausible (or sensical) to open an account specifically for prospective clients to pay me for work?
- Can this be with the bank I'm already with, or will I have to open one with somebody else?
- Would I be theoretically able to transfer money from this account to my personal one to keep in a savings account?

I know this sounds a bit "plebby" but as I say, I'm pretty clueless with banking when I'm doing anything more intense than setting up a standing order. Any help would be greatly appreciated.

System

Personal accounts generally prohibit business transactions. That said if you are sole trader and it's infrequent you'll probably get away with it. If you get caught, they'll either close your account or insist you open a business account.

However, why would you have an issue putting your own bank details?
A business account would still have an sort code & account number.

jimmymoon

I guess sending out documents with my sort code and account number just unsettled me at first. I know it'd be the same if I had a dedicated freelance account but I figure my own personal savings would be safe... Maybe I'm just paranoid.

As far as I'm concerned I don't have a "business". I have a website to advertise myself, and I'd send invoices to clients who'd transfer the money to me. How do banks tell the difference between a personal transaction and one for business?

eDicky

You are free to have as many additional accounts as you like or need, with your present bank or with others, and to transfer funds between them at any time with yourself as the payee.

dj1471

As suggested you're free to have as many current accounts as you like with as many banks as you like.

But be in no doubt: you have a business. This comes with legal obligations that you need to familiarise yourself with.

tifo

jimmymoon wrote: »

How do banks tell the difference between a personal transaction and one for business?

Its not hard if they look, you'll prob ask clients to use a certain ref number.

Most banks won't look into it, i've never had it in a decade and clients use all sorts of ref numbers including 'consultancy'. Many times i've pointed these out to my bank and said "look there's my income" ....