When do I need a business account

Tomc3

Hello,

I've got a full time job paid through PAYE, but also do a little bit of music teaching on the side, for which I'm paid by cash or cheque and it all gets declared through my tax return. At the moment, the amount of money coming in each week is very small (£20-£30), and gets deposited to a normal personal current account every few weeks (the account is not used for anything else.)

I'm aware that this is probably not within the account's terms and conditions, as it amounts to business usage. However, I have been doing this for a year without any complaint, and I rather begrudge having to pay fees to deposit cash when the amount of money is so small.

I would like to gradually build up the teaching business, so can anyone suggest when I should be switching to a proper business account, and when I might risk getting told off?!

Thanks!

Tom.

jonesMUFCforever

You should be ok continuing doing what you are doing.
It is a good thing to keep other earnings seperate.

The only time you may need to open a business account is if you start trading and name the business say Tomc3 t/a rubbishmusic teacher (only joking!) where any cheques made payable to the businss name would have to go into a business account.
Any cheque payable to you could be payable to either account.

Tomc3

Hi, thanks for the reply. All the cheques I get are made out to my name so that's not a problem. I'm just concerned that at some stage the bank might wonder why I'm paying so much cash and cheques in, and tell me to open a business account (not that it's a problem now, as I'm sure I pay in no more than a typical personal customer.)

Tom.