Do I Need a Business Bank Account?

fleeze69

Hi

I have a regular job with a salary but also do a bit of freelance work at night and at weekends, currently my wages from my job and my freelance cheques get paid into the same bank account, I save my wages in the bank (or transfer them to my ISA) and drawer the freelance cheques out to pay off my credit card, and for general spending.

I quite like doing things this way and feel I don't need a Business Bank Account, Legally am I alright in doing this or should I have a business account?

Also on my tax return for 2006-2007 In the section that said did you earn any interest from the Bank I put NON as I spend it as soon as I get it and save my wages from my normal job, again am I correct in doing this.

Thanks in advance

fengirl_2

Legally, you don't have to have a separate account for your business, but by mixing the two lots of income up, you are opening yourself to trouble if HMRC decide to open an enquiry into your affairs. they could argue that your recrods are not sufficent for your business side and it also opens up your private side to them without a fight.
If you get interest on your account, then you declare it, but if you don't earn any interest, there is nothing to decalre.