Best Business Account very low transactions

lanerose60

Nearly 60 and will be doing a few local deliveries self employed, wont earn enough to pay any tax, is a business account necessary and if so which one? I will be paid monthly and the only other transactions will be fuel and the odd motor expense, so no more than 50 transactions a year

colsten

Whilst you might get away using your personal account for it, it would be against the T&Cs of the current account and you would risk that the bank close it.

Much safer to go with a business account. Starling Bank offer a free one for sole traders, so this sounds ideal for you. It also keeps your personal and business transactions nicely separate so you can see at a glance how your business does. Also, if HMRC want to know about your business, it will be very easy to pull the numbers together.

In the context: do you already have enough NI years for a full state pension? Would you be eligible for NI credits?

bazzyb

Whilst I agree with the advice from Colsten above, it is worth noting that it is extremely difficult to open a business bank account right now with most banks and you may be waiting for many weeks. Indeed Starling are not currently accepting applications for sole traders accounts at all. 

With the limited amount of business transactions that will be going through it, you will probably be fine using your personal account, just be aware it is technically against the T&Cs. 

If you do feel a business account is necessary then it may be worth trying with who your personal current account is with in the first instance as it may be an easier/quicker route in (assuming you need the account this side of Christmas). Most banks offer fee free banking for the first 12 months and then you can use the switching service to change your account when things are back to a little more normality in the new year. 

colsten

bazzyb said:

Whilst I agree with the advice from Colsten above, it is worth noting that it is extremely difficult to open a business bank account right now with most banks and you may be waiting for many weeks. Indeed Starling are not currently accepting applications for sole traders accounts at all. 

Starling are accepting applications again now.

bazzyb

colsten said:

bazzyb said:

Whilst I agree with the advice from Colsten above, it is worth noting that it is extremely difficult to open a business bank account right now with most banks and you may be waiting for many weeks. Indeed Starling are not currently accepting applications for sole traders accounts at all. 

Starling are accepting applications again now.

Good to know, I thought they were still restricted to limited companies only. 

BrownTrout

Starling are great for business accounts like that

fenwick458

i'd just use a personal account. if you think you will have a turnover of more than 100k OR will need to be in the branch depositing coins every week then go for a proper business bank account, if you dont; need that, don't bother!

colsten

fenwick458 said:

i'd just use a personal account. if you think you will have a turnover of more than 100k OR will need to be in the branch depositing coins every week then go for a proper business bank account, if you dont; need that, don't bother!

Given that there is at least one free account for sole traders, as already covered, it would however be quite silly to knowingly breach the T&Cs and to risk having an account blocked/closed.