Can't use current account for sole trader business

pixiewoowoo

I have been with Nationwide for many years. I have been working as a sole trader/self employed for the past 18 years, and have been having invoices paid into my current account, and business outgoings going out from it for all this time. Nationwide have always said this was acceptable. It isn't huge figures, I don't pay any staff and general outgoing payments are for professional associations/insurance and work related expenses such as paying for entry to events/attractions ( other outgoings are for mine and  my children's activities and general ( online ) purchases. 

Today I received an email saying that it looks like I using my current account for a business, and that I must stop, or they will close my account. Nationwide don't even offer a business account, so if I need to open one elsewhere, I will be moving ALL my accounts. 

I just wondered if anyone else had recently been told the same? 

I'm thinking of moving to Starling?

dr_adidas01

pixiewoowoo said:

I have been with Nationwide for many years. I have been working as a sole trader/self employed for the past 18 years, and have been having invoices paid into my current account, and business outgoings going out from it for all this time. Nationwide have always said this was acceptable. It isn't huge figures, I don't pay any staff and general outgoing payments are for professional associations/insurance and work related expenses such as paying for entry to events/attractions ( other outgoings are for mine and  my children's activities and general ( online ) purchases. 

Today I received an email saying that it looks like I using my current account for a business, and that I must stop, or they will close my account. Nationwide don't even offer a business account, so if I need to open one elsewhere, I will be moving ALL my accounts. 

I just wondered if anyone else had recently been told the same? 

I'm thinking of moving to Starling?

Yes it’s standard in all the T&Cs of most personal bank accounts that you shouldn’t use it for business purposes. 

You’ve been lucky that NationWide have told you to stop doing it and not immediately closed it for  breaching your account T&Cs, as has happened to other posters on this forum who have done this with other accounts held with other banks. 

If you do decide to go with Starling you’ll also need to open a business account with them as if you use your personal account they will do the same as NationWide or worse immediately close your account. 

You could also try Monzo as they offer current accounts and business accounts to existing account holders. 

colsten

It's not unusual that financial institutions are enforcing their T&Cs. The T&Cs for all UK current accounts state that they are for personal use only. Unfortunately, some people choose to ignore the T&Cs and get upset when they get reminded what they agreed to.

It would be silly to move your personal accounts to where your business account is. Keeping personal and business separate is a good idea, as is to have at least two personal current accounts.

Starling is probably a good choice for a business account though I believe they force you to open a personal account first. If you have difficulties getting a Starling account, potential alternatives are Monzo and Tide.

pixiewoowoo

Thanks both.

I've spoken to Starling who say I can open a business account without a personal account, which is what i was thinking about doing. 

and as for breaching t&cs ... until recently, it was 'allowed'. And as a sole trader, I don't actually legally HAVE to have a business account.

colsten

No bank allows a personal current account to be used for business purposes. Ignore those T&Cs at your peril.

ThisnotThat

pixiewoowoo said:

Thanks both.

I've spoken to Starling who say I can open a business account without a personal account, which is what i was thinking about doing. 

and as for breaching t&cs ... until recently, it was 'allowed'. And as a sole trader, I don't actually legally HAVE to have a business account.

Well, it was allowed until it wasn't allowed.

Unless you have it in writing that it will always be allowed and that rule doesn't apply to you you were always running the risk they'd pull you up on it.

As others have said, be thankful they only warned you.

Zanderman

pixiewoowoo said:

Thanks both.

I've spoken to Starling who say I can open a business account without a personal account, which is what i was thinking about doing. 

and as for breaching t&cs ... until recently, it was 'allowed'. And as a sole trader, I don't actually legally HAVE to have a business account.

Legally you don't.  But that's not relevant. 
Don't confuse legal rules with bank rules. 
The bank rules say you must use a business account for business.
Just be grateful they neglected to enforce this rule for so long!

GeordieGeorge

pixiewoowoo said:

Thanks both.

I've spoken to Starling who say I can open a business account without a personal account, which is what i was thinking about doing. 

and as for breaching t&cs ... until recently, it was 'allowed'. And as a sole trader, I don't actually legally HAVE to have a business account.

What do you mean “legally”? It’s nothing to do with the law, it’s the bank’s (completely normal) rules that are the issue here, not the law.

pixiewoowoo

Thanks all. 

Thrugelmir

pixiewoowoo said:

I just wondered if anyone else had recently been told the same? 

Certainly a trend that's gained momentum. As the extent of non compliance has come to light. 

Daz2009

I've had the same email.
I've had a current account with Nationwide for 25 years and never used it for my business,I have a business account elsewhere for that.
I don't know what they're playing at,I've fired off a complaint and am waiting for their response.
It's quite likely I'll be closing my account now