Sole Traders using a Second Current account?

moneysavingz

Hi all, 
I would like to use a second current account rather than a business account for my small sole trader business (part time & less than 15k turnover).

I have had nothing but problems with a certain high street business bank over the years, having to go into the bank on multiple occasions to confirm my identity, transactions being stopped and all sorts. In addition to this, the additional fees associated with business accounts just don't seem worthwhile in my situation.

I'm fully aware that by law you are allowed to use a current account for a sole trader business, but most banks stipulate that they do not accept it in ther T&C's.

I am more than happy to take the risk in this instance and am looking to hear from other Sole Traders who have been doing this for many years with a current account without issues/probing/closures, so that I can make an educated choice. 
Thank you  

jonesMUFCforever

Try it and see - but please don't come back here if your accounts are frozen or closed.
Might be worth having a look at the digital app banks - it might work for you.

Thrugelmir

moneysavingz said:

I'm fully aware that by law you are allowed to use a current account for a sole trader business, 

Which law are you referring to? 

colsten

There is no law that says you can, or you cannot, use a personal current account as a business account. It is the T&Cs of the personal current accounts that prohibit business use.

I would suggest that if you had problems with your business accounts, you'd have even larger problems if you were trying to use a personal current account for business purposes. 

If you want to avoid Branch visits, try a bank which doesn't have Branches. Though they might be asking the same questions your existing bank asked.

gt94sss2

Have you considered one of the business accounts that doesn't charge fees for normal activities?

dunstonh

I'm fully aware that by law you are allowed to use a current account for a sole trader business, but most banks stipulate that they do not accept it in ther T&C's.

Please do tell us what law you are referring to (clue: there is not one).    But yes, most banks state in their T&C that they do not allow business customers to use a personal account.    Most have turned a blind eye to it for years if you were not using counter services or business banking facilities.   However, it is clear from the bounce back loans that banks are not treating those with personal accounts the same as those with business accounts.

If you have had problems with a bank on a consistent basis going over multiple years then it probably indicates a wider problem with how they view you.  in which case, you may want to consider a new bank.  However, a personal bank account is not the way.

fenwick458

15k turnover, go for it, nobody will notice.

BrownTrout

Use starling. Very simple 

colsten

BrownTrout said:

Use starling. Very simple 

Starling are not taking new applications for their free Business account atm. 

colsten

fenwick458 said:

15k turnover, go for it, nobody will notice.

Will you help the OP out when his account gets blocked for breaching the T&Cs?

Thought not.

dr_adidas01

You could try Monzo they have business accounts.

https://monzo.com/i/business