Banking for small amounts self employed 11 August 2022 at 7:35PM in Boost your income 2 replies 267 views

BRichard

Do people normally use a business account for small self-employed payments in? I have always used my regular current account for these small payments but I am wondering if I should have a business account, even though it's only about 3k per year going in.
I just noticed in the Halifax T&Cs that it says they can close accounts if they suspect it's being used for business purposes. I have my mystery shopping fees paid in there but they are only small amounts, and I assumed it would not be a problem, but now I am not so sure. There must be a lot of people doing that sort of thing because business accounts don't seem worthwhile for these small amounts.

fluffig

I suspect the answer is people should, but most don't.

SlinkyWeevil

BRichard said:

Do people normally use a business account for small self-employed payments in? I have always used my regular current account for these small payments but I am wondering if I should have a business account, even though it's only about 3k per year going in.
I just noticed in the Halifax T&Cs that it says they can close accounts if they suspect it's being used for business purposes. I have my mystery shopping fees paid in there but they are only small amounts, and I assumed it would not be a problem, but now I am not so sure. There must be a lot of people doing that sort of thing because business accounts don't seem worthwhile for these small amounts.

Small business owner here! I use my personal bank account for my business transactions as I am a sole trader.  It’s not a legal requirement to have a business bank account unless you are a Ltd company.  That said, my business has very few expenses and running costs.  If I was purchasing stock to resell or had loads of allowable expenses, then I’d open a business bank account to make it easier to do my accounts.  It also makes it easier to apply for a mortgage if you have a separate business bank account as the mortgage lender can then clearly identify the incoming and outgoing transactions related to the business.