Hsbc bank blocked my account overnight

beenish

I am receiving this message that you can't tranafer as you don't have funds or your information is not upto date. Called bank and waiting for their call in 3 days. I am  part time self employed and earn £300/month. However there is combined property of me and my husband and rental income has been coming in my account for many years ( 5 years)  and mortgage also goes out of my account. Also husband ( also from his hsbc account)  transfers money into my account  every month for daily expense. I have been with hsbc for 14 years. I recently made transfer internationally which is not unusual as I do on and off of 100. Rental income came yesterday of £1500. Husband paid me £1100 yesterday and there was a refundable security deposit  of £170 from an organization. I asked an agent to update  contact and financial details. But I forgot to mention about rental income( incoming) and mortgage ( outgoing) which i'll tell today whennI go to branch. I don't have any credit card and I have another account with another bank.  But hsbc is my main account and I have a saving account as well with them. I have a good credit history.  Does anyone have any idea what is going on or had experienced this?

born_again

Is this a personal or business account?

If personal then they may have decided that you are running a business. As such this is against the T/C of a personal account.

beenish

born_again said:

Is this a personal or business account?

If personal then they may have decided that you are running a business. As such this is against the T/C of a personal account.

Its a personal account. I am a childminder (registered with ofsted) so basically not running  a business and have been in this for many years. 

Nasqueron

beenish said:

born_again said:

Is this a personal or business account?

If personal then they may have decided that you are running a business. As such this is against the T/C of a personal account.

Its a personal account. I am a childminder (registered with ofsted) so basically not running  a business and have been in this for many years. 

How do you mean "basically not running a business" when you are taking money for providing a service i.e. running a business?

danny13579

beenish said:

I am receiving this message that you can't tranafer as you don't have funds or your information is not upto date. Called bank and waiting for their call in 3 days. I am  part time self employed and earn £300/month. However there is combined property of me and my husband and rental income has been coming in my account for many years ( 5 years)  and mortgage also goes out of my account. Also husband ( also from his hsbc account)  transfers money into my account  every month for daily expense. I have been with hsbc for 14 years. I recently made transfer internationally which is not unusual as I do on and off of 100. Rental income came yesterday of £1500. Husband paid me £1100 yesterday and there was a refundable security deposit  of £170 from an organization. I asked an agent to update  contact and financial details. But I forgot to mention about rental income( incoming) and mortgage ( outgoing) which i'll tell today whennI go to branch. I don't have any credit card and I have another account with another bank.  But hsbc is my main account and I have a saving account as well with them. I have a good credit history.  Does anyone have any idea what is going on or had experienced this?

beenish said:

Its a personal account. I am a childminder (registered with ofsted) so basically not running  a business and have been in this for many years. 

You are running a business. You are a sole trader. As you earn over £1,000 per year from it you need to register as a business with HMRC. You cannot use a personal bank account to run a business. This link may help explain your obligations. 

HMRC defines a business as any trade, profession or vocation. Business activities are those of persons supplying goods or services including exploiting tangible or intangible assets with the intention of generating income by doing so on a continuous basis.

penners324

Have you received a letter about not running a business through a personal account. Rental income is considered to be a business.

If not then it's likely a fraud check on one the payments.

Suggest you open a business account elsewhere for the rent monies, asap. Starling or Monzo would be suitable 

danny13579

penners324 said:

Have you received a letter about not running a business through a personal account. Rental income is considered to be a business.

I was referring more to the childminding. But I guess the rental income makes it 2 businesses.

beenish said:

Its a personal account. I am a childminder (registered with ofsted) so basically not running  a business and have been in this for many years. 

This link may help you understand better your obligations as a professional childminder.

Jhorrn

danny13579 said:
You are running a business. You are a sole trader. As you earn over £1,000 per year from it you need to register as a business with HMRC. You cannot use a personal bank account to run a business. This link may help explain your obligations. 

HMRC defines a business as any trade, profession or vocation. Business activities are those of persons supplying goods or services including exploiting tangible or intangible assets with the intention of generating income by doing so on a continuous basis.

I have been running my new sole trader business since start of last tax year using a personal account and was unaware HMRC doesn't allow this. I asked my bank, HSBC, if could use the account for this purpose and they said yes and it has worked well so far. Also checked HMRC website about sole trader rules and never noticed anything about a need for a business non-personal account for it.
The link above doesn't directly mention anything about a need for a business account.
Have just submitted tax forms for last tax year (SA100, SA103S) so will mention this issue to them at next opportunity.

marcia_

Jhorrn said:

danny13579 said:
You are running a business. You are a sole trader. As you earn over £1,000 per year from it you need to register as a business with HMRC. You cannot use a personal bank account to run a business. This link may help explain your obligations. 

HMRC defines a business as any trade, profession or vocation. Business activities are those of persons supplying goods or services including exploiting tangible or intangible assets with the intention of generating income by doing so on a continuous basis.

I have been running my new sole trader business since start of last tax year using a personal account and was unaware HMRC doesn't allow this. I asked my bank, HSBC, if could use the account for this purpose and they said yes and it has worked well so far. Also checked HMRC website about sole trader rules and never noticed anything about a need for a business non-personal account for it.
The link above doesn't directly mention anything about a need for a business account.
Have just submitted tax forms for last tax year (SA100, SA103S) so will mention this issue to them at next opportunity.

 HMRC are not concerned about how you use your bank account. The bank makes and enforces their rules. 

penners324

Jhorrn said:

danny13579 said:
You are running a business. You are a sole trader. As you earn over £1,000 per year from it you need to register as a business with HMRC. You cannot use a personal bank account to run a business. This link may help explain your obligations. 

HMRC defines a business as any trade, profession or vocation. Business activities are those of persons supplying goods or services including exploiting tangible or intangible assets with the intention of generating income by doing so on a continuous basis.

I have been running my new sole trader business since start of last tax year using a personal account and was unaware HMRC doesn't allow this. I asked my bank, HSBC, if could use the account for this purpose and they said yes and it has worked well so far. Also checked HMRC website about sole trader rules and never noticed anything about a need for a business non-personal account for it.
The link above doesn't directly mention anything about a need for a business account.
Have just submitted tax forms for last tax year (SA100, SA103S) so will mention this issue to them at next opportunity.

It's a bank rule, every bank has the rule in their T&Cs, including HSBC. It's also good governance practice to have a different business account.

Considering you can get fee free business accounts these days, why not have one?

beenish

I went to the branch, updated all my details with them including profession , rental income etc. They can't help me except they can forward the request to move my money into my another account.  What triggered red flag, they don't know! Its forwarded to Global financial team. They would investigate. There is no timeline given. I looked into my account again. I can see I forwarded small amount of money  to my relative abroad and to registered charity account abroad few times ( 2 times that payment reverted back in my account and 1 time I accidentally transferred into an account which was closed so money was reverted). But that has been in span of 2 years and I used global account of hsbc which is meant for the purpose of sending money abroad.