Business bank account help

Totalmusic

Hi,

I'm after some advice from the great community on here. I've traded as a sole trader and covered my own self-assessment tax returns for 17 years but have been speaking to an accountant who has suggested I become a limited company since this will work better for me.

I therefore need to have a new bank account and advised to have a business bank account, not a personal account. I need to still keep my personal accounts but my income now needs to come via a business account since it will have 'ltd' at the end of my name.

Seemingly the rules for business banking are very different and none of them seem to encourage new customers in the way personal bank accounts do. Since I've been trading for a number of years, I can't take advantage of the fee-free periods of banking. I simply will be receiving money from the 3 places where I work and won't need to make many transactions or have an overdraft through it since I will drawing a monthly amount from it to my personal account.

Seemingly I have to pay a monthly fee AND pay the bank when I put money into the account. This seems crazy to me but seemingly this is how business banking works. I'm fairly naive in this area so any suggestions or help would be really welcome.

Many thanks,

Neil

eskbanker

Totalmusic wrote: »

Since I've been trading for a number of years, I can't take advantage of the fee-free periods of banking.

You may have been trading for a number of years but the new limited company hasn't and so is technically a startup - from memory at least one of the banks offering new business deals (Santander perhaps?) has a clause excluding such changes of legal entity but worth checking the small print thoroughly....

alanq

With low activity you may be able to avoid transaction and monthly fees.

e.g. MetroBank gives 50 transactions per month and no monthly fee provide a minimum balance of £5000 is maintained. (Not much help if you do not have a Metro Bank nearby)

https://www.metrobankonline.co.uk/business/current-accounts/products/business-bank-account/#a88b3c11-80af-49ef-961b-343aae7c8810

Zanderman

Starling have a new very low cost business account for limited companies: https://www.starlingbank.com/business-account/

will-he-payitoff

I had no problems opening one with Santander and then Yorkshire Bank.

Totalmusic

Many thanks all of you. I have been researching and feel a lot better following on from some of your advice too.

Neil

jonesMUFCforever

I think Lloyds treats a ltd company as a new entity so a new start.

Don't forget bank charges are a valid business expense so you will pay less tax anyway.