Sole trader bank account

kevSand

hi
I've recently been made redundant and so I'm setting up on my own as a self employed Electrician, I've registered with the HMRC, just waiting in my details back from them, but i now need to open a business bank account, can anyone recommend a good business account with low charges 

Many thanks 

colsten

Have a look at the Starling Sole Trader Account

yorkiechick

My OH has a Starling Account and rates it so far

J_B

Starling .....

colsten

stehouk said:

I'm a sole trader and i just use a personal current account, you are not legally required to use a business account.

There is no law that states what kind of accounts people must and must not have.

However, there are legally binding T&Cs which you have to agree to when you apply for a bank account. The T&Cs of all personal current accounts state that the account is for personal use only; some even spell it out in clear text "not for business use". If you want to join those who had their accounts closed for breach of terms, fine. But it is irresponsible to recommend other people should also breach T&Cs.

Zanderman

stehouk said:

As a sole trader, you're not legally required to have a business bank account. You can use your personal bank account for all business transactions. This is because as a sole trader, your personal and business income is treated as one and the same by HMRC for tax purposes.

quote from tinternet, i have been a sole trader for over 10yrs never been questioned, i submit my own tax retrurns every year so from my experience i have never had a problem.
When i open/apply for current account i complete the applications as self employed and i have 8 current accounts, not one of them have questioned the usage.

You're missing the point.  No-one is suggesting a business account is a legal requirement for tax or accounting..
However ALL banks, afaik, state in their personal account T&C that it must not be used for business purposes. 
The bank's T&C are the bank's rules.  Don't confuse bank rules - which are binding between you and the bank, with HMRC legal requirements, which are binding between you and HMRC..
It's not about tax, or accounting.  It's about the bank's rules - which you agreed to when you opened your personal account.

colsten

stehouk said:

As a sole trader, you're not legally required to have a business bank account. You can use your personal bank account for all business transactions. This is because as a sole trader, your personal and business income is treated as one and the same by HMRC for tax purposes.

quote from tinternet, i have been a sole trader for over 10yrs never been questioned, i submit my own tax retrurns every year so from my experience i have never had a problem.

You can quote tinternet until you are blue in the face. tinternet does not overwrite a bank's T&Cs. It's nothing whatsoever to do with the HMRC or with any law.

Just because you got away with breaching the terms of your current account for umpteen years does not mean that you couldn't find yourself with a notice from your bank that your current account will be closed within 60 days. We have seen countless posts on here over the years from people who this happened to. As I said, feel free to continue to run a risk for yourself, but please don't badly advise other people.

colsten

The OP has asked for suggestions for a business account with low charges, and has got suggestions from people for just that. In fact, the account suggested by several posters is free.

The OP has not asked for recommendations to breach T&Cs. You have chosen to provide such a recommendation regardless. Delboy tactics that might well catch up with you one day. 

Anyway, I have now said all there is to say about his.