Do I need a business bank account?

tedblight

I read the article, quite useful. It says you don’t need a business account if your are self employed. Can I ask which banks will let you run business transactions (if any)  via a personal bank account? Thanks

colsten

tedblight said:

I read the article, quite useful. It says you don’t need a business account if your are self employed. Can I ask which banks will let you run business transactions (if any)  via a personal bank account? Thanks

I am not aware of any personal current account T&S that don't specify that the account is for personal transactions only, not business ones.

But hey, in the UK it is apparently hip now to ignore rules, T&Cs and even laws. You should be awe-rite (!!) if you breach the account T&Cs in a limited and specific way only, or if you drive to Barnard Castle to test your eyes.........................just don't expect any help from the T&C breach-advisors when your account gets locked and closed.

hearnaa

We are a group of freeholders who have a common bank account to gather service charge and pay common bills.  We are not a limited company, but whoever set up the account (many years ago) opened a business account.  We are now having a nightmare with HSBC, who are insisting on all sorts of info that we cannot give - as it is not relevant to us.  If we close this account and move to another bank, do we need to open a business account?  Or would a shared personal one be sufficient?

lr1277

We are a group of freeholders who have a common bank account to gather service charge and pay common bills.  We are not a limited company, but whoever set up the account (many years ago) opened a business account.  We are now having a nightmare with HSBC, who are insisting on all sorts of info that we cannot give - as it is not relevant to us.  If we close this account and move to another bank, do we need to open a business account?  Or would a shared personal one be sufficient?

Not an expert, but a community bank account could meet your needs. This seems to be a current account for unregistered community groups. Search the internet for: Uk community bank account.

Googling suggests HSBC do these kind of accounts. Perhaps ask them if you could swith this account over to a community account?

HTH

Mmtmmb_6308

We have a small house rental portfolio, we currently use an old current account which I’ve had many years which is only for my name. We use the account to pay  mortgages by direct debit, and receive rents via standard orders. We need to change the account into joint names, But unfortunately they no longer offer this account. Can anyone recommend a business account which don’t incur high fees. We don’t need an overdraft facility 

Any advice would be greatly appreciated 

colsten

Try Starling or Monzo sole trader accounts. Mind you, I don't know whether you can have these in joint names, as two people are obviously not a sole trader. But they might have solutions for you.

J_B

Mmtmmb_6308 said:

We have a small house rental portfolio, we currently use an old current account which I’ve had many years which is only for my name. We use the account to pay  mortgages by direct debit, and receive rents via standard orders. We need to change the account into joint names, But unfortunately they no longer offer this account. Can anyone recommend a business account which don’t incur high fees. We don’t need an overdraft facility 

Any advice would be greatly appreciated 

Is the account that you have a 'business' account.

Many people use a private account to operate their business. It's of course, not strictly legal but ...............

Would you consider changing what you have to a joint account?

General_Grant

J_B said:

Mmtmmb_6308 said:

We have a small house rental portfolio, we currently use an old current account which I’ve had many years which is only for my name. We use the account to pay  mortgages by direct debit, and receive rents via standard orders. We need to change the account into joint names, But unfortunately they no longer offer this account. Can anyone recommend a business account which don’t incur high fees. We don’t need an overdraft facility 

Any advice would be greatly appreciated 

Is the account that you have a 'business' account.

Many people use a private account to operate their business. It's of course, not strictly legal but ...............

Would you consider changing what you have to a joint account?

Does using the account contrary to explicit terms of a commercial organisation not by statute make it illegal?

henm2

.  We are now having a nightmare with HSBC, who are insisting on all sorts of info that we cannot give - as it is not relevant to us. '

Sounds like you have got one of HSBCs' Safeguard' letters. So your choice is either answer the questions they are asking or transfer your account to another bank as it would appear they will close your account otherwise.
Personal accounts T&Cs as many have mentioned do not allow business transactions of any type. 

Zanderman

J_B said:

Mmtmmb_6308 said:

We have a small house rental portfolio, we currently use an old current account which I’ve had many years which is only for my name. We use the account to pay  mortgages by direct debit, and receive rents via standard orders. We need to change the account into joint names, But unfortunately they no longer offer this account. Can anyone recommend a business account which don’t incur high fees. We don’t need an overdraft facility 

Any advice would be greatly appreciated 

Is the account that you have a 'business' account.

Many people use a private account to operate their business. It's of course, not strictly legal but ...............

Would you consider changing what you have to a joint account?

General_Grant said:

J_B said:

Mmtmmb_6308 said:

We have a small house rental portfolio, we currently use an old current account which I’ve had many years which is only for my name. We use the account to pay  mortgages by direct debit, and receive rents via standard orders. We need to change the account into joint names, But unfortunately they no longer offer this account. Can anyone recommend a business account which don’t incur high fees. We don’t need an overdraft facility 

Any advice would be greatly appreciated 

Is the account that you have a 'business' account.

Many people use a private account to operate their business. It's of course, not strictly legal but ...............

Would you consider changing what you have to a joint account?

Does using the account contrary to explicit terms of a commercial organisation not by statute make it illegal?

As General_Grant suggests, using a personal account for business use is not illegal - the law has nothing to do with it. 
J_B is therefore wrong to suggest it is illegal
It is against the bank account's terms and conditions. 
That's all. 
But that's enough to be a problem.