Help regarding bank account for a sole trader

proudgecko

A friend of mine is going to start up as a sole trader alongside their main job, but is wondering whether they need a business account or if they can use a personal account for this.

I gather some banks allow a small side hustle to be managed through a personal account but some don’t

Has anyone get info about which banks allow a personal account to be used in this way

And which banks offer free business accounts is she has to go down that route

thanks in advance for any advice

EarthBoy

I don't think any banks officially allow personal accounts to be used for business purposes. If you check their terms and conditions they will almost certainly forbid it. Some banks might turn a blind eye to it if it's a very small business, which only makes a very few transactions, but you'd still run the risk of them closing the account if they decided to tighten up their procedures and investigate.

flaneurs_lobster

List of small business account providers here.

https://www.knowyourbusiness.co.uk/banking/compare-best-business-bank-accounts/

I know that opening a Tide account can get you £100 at Topcashback.

lr1277

I know a taxi driver who is self-employed and used to run everything through his day to day personal account.

With the advent of Making Tax Digital he has now opened a business account to keep everything separate.

I don't know if your friend was going to use their day to day personal account or open another current account. If opening another account I would advise it be at a different institution than where they have their day to day current account, just incase there are problems at either.

And your friend should look into whether they are affected by Making Tax Digital.

Edited to change pronouns.