Please help me to choose a new business/personal account

Zanderman

travelodger said:

I've also read online that it's ok to use a personal current account for business if you are, like me, a sole trader with a small turnover!

Where online?  There's a huge amount of stuff that you can read online that's not entirely accurate! 

Many sole traders may well use a personal account for business use - I know a few of them - but just because it seems to be 'ok' for them doesn't mean it is ok. It will be against the bank's T&Cs and, if the bank chooses to (it may not) then it can close the account for misuse. 

Personally, as there have always been free to use business accounts about (and there are several at present) I've never seen the need to take the risk. And, of course, having a business account separate to personal banking does help with accounting..

travelodger

Zanderman said:

travelodger said:

I've also read online that it's ok to use a personal current account for business if you are, like me, a sole trader with a small turnover!

 there have always been free to use business accounts about (and there are several at present) I've never seen the need to take the risk. And, of course, having a business account separate to personal banking does help with accounting..

I've hit a problem, Zanderman. I checked my specific bank and it does indeed say that personal accounts may not be used for business.

Firstly, I would like to ask, what is "business"?

If I sell a secondhand book on Ebay (etc) and am paid via bank transfer, is that "business"? If I write a book and have it printed, and then sell it on Ebay (etc) and am paid via bank transfer, is that "business"?

I tried to open a business bank account but they need me to prove my identity with a driving licence (I can't drive) or a passport which is in date for travel. I do have a passport but it has expired and I won't be renewing it as I am now disabled and will never go abroad again.

What now?

eskbanker

travelodger said:

Firstly, I would like to ask, what is "business"?

If I sell a secondhand book on Ebay (etc) and am paid via bank transfer, is that "business"? If I write a book and have it printed, and then sell it on Ebay (etc) and am paid via bank transfer, is that "business"?

I doubt that any bank would publish a clear definition of 'business' so any discussion on the topic would probably rely on other definitions, such as how HMRC considers the activity.

travelodger said:

I tried to open a business bank account but they need me to prove my identity with a driving licence (I can't drive) or a passport which is in date for travel. I do have a passport but it has expired and I won't be renewing it as I am now disabled and will never go abroad again.

What now?

Chances are that you'd face the same issues if trying to open a personal account too, so you'd be best to read the published ID verification criteria closely for any account you're considering, as some may be more onerous than others, but it might be pragmatic to renew your passport even if you don't plan to travel.

Zanderman

travelodger said:

Zanderman said:

travelodger said:

I've also read online that it's ok to use a personal current account for business if you are, like me, a sole trader with a small turnover!

 there have always been free to use business accounts about (and there are several at present) I've never seen the need to take the risk. And, of course, having a business account separate to personal banking does help with accounting..

I've hit a problem, Zanderman. I checked my specific bank and it does indeed say that personal accounts may not be used for business.

Firstly, I would like to ask, what is "business"?

If I sell a secondhand book on Ebay (etc) and am paid via bank transfer, is that "business"? If I write a book and have it printed, and then sell it on Ebay (etc) and am paid via bank transfer, is that "business"?

I tried to open a business bank account but they need me to prove my identity with a driving licence (I can't drive) or a passport which is in date for travel. I do have a passport but it has expired and I won't be renewing it as I am now disabled and will never go abroad again.

What now?

It depends.

If you sell a second hand book because you don't want it any more because you've read it, or were given it and don't want to read it, then that's just shedding stuff. But if you buy a second hand book at a boot sale with the sole intention of selling it on at profit, that's business.

And if you write a book and sell it - on Ebay, or hawking it in the street, or via bookstore chains, or whatever, that's definitely business. Maybe small scale, but definitely business.

As for you opening a business account and failing because of not having photo ID, that will, as eskbanker says above, be a potential problem with any bank account, it's not a specific problem of business accounts as such.

Which bank was it?  I currently have free business accounts with Virgin and with Mettle (a NatWest brand). I can't remember what ID info they needed but both were fairly easy to open. Both were, also, switches from businesses accounts elsewhere.