Sole Trader Business Bank statement required?

vikashkumar23

Hi 
We are applying mortgage with virgin money. I am the main applicant and I am fulltime employed
My wife is sole trader and self employed. She is supporting applicant. 
For applying mortgage, Virgin money requested for my wife's business bank statement which she hasn't got it. 
she got only personal account and she use that for her business. 
Is it something that the bank will accept only business account bank statement and not personal account statement for provide mortgage? 

Old_Lifer

Your wife is in business  but the business doesn't have a bank account ?    Your wife  has probably broken the terms of her  bank account  by using it for business purposes.     If the account is a mix of 'personal' and 'business' entries  how on earth is anyone  going  to tell  from a simple bank statement,  the difference between  both types of entry. ?  

Thrugelmir

Similar questions asked
https://forums.moneysavingexpert.com/discussion/6194422/virgin-money-mortgage-self-employed#latest

[Deleted User]

Old_Lifer said:

Your wife is in business  but the business doesn't have a bank account ?    Your wife  has probably broken the terms of her  bank account  by using it for business purposes.     If the account is a mix of 'personal' and 'business' entries  how on earth is anyone  going  to tell  from a simple bank statement,  the difference between  both types of entry. ?  

Absolute nonsense ! Millions use a standard bank account when self employed running a small business

The mortgage company will see the entries on the standard statement 

Thrugelmir

Densol said:

Old_Lifer said:

Your wife is in business  but the business doesn't have a bank account ?    Your wife  has probably broken the terms of her  bank account  by using it for business purposes.     If the account is a mix of 'personal' and 'business' entries  how on earth is anyone  going  to tell  from a simple bank statement,  the difference between  both types of entry. ?  

Absolute nonsense ! Millions use a standard bank account when self employed running a small business

Doesn't mean that it's the right thing to do. Keeping business and personal transactions separate is useful when the HMRC choose to pick on you.  

MWT

As a sole trader there is no requirement to have a business bank account, as a sole trader HMRC treats personal and business income the same for tax purposes, so it really doesn't matter to HMRC.

Doesn't mean it isn't a good idea though...

It will not be the first time that Virgin have dealt with a sole trader without a separate business account, and they can still see the details they will be looking for, so just tell them she doesn't have one and provide her personal account statements.

dunstonh

Absolute nonsense ! Millions use a standard bank account when self employed running a small business

Actually, it is not nonsense.   Most banks have it in their T&C that personal accounts should not be used for business purposes.   However, many banks have historically turned a blind eye to it as long as counter facilities were not being used or other business banking services.      Although it has been notable that those applying for a BBL without a business account have found some of the banks less forthcoming in dealing with those people and in some cases, accounts have been closed.   So, it is very common to see it but there really is little reason for not having a separate business account.   Your accountant costs could be higher when you don't.

For a lender, it shouldn't be an issue.