Banking advice

Ems1 · 02-06-2007, 11:14 AM

Hi all,was just wondering if anyone can help me out with this question please.As a sole trader are you required to use business bank accounts or can you use a "normal" account,any help would be great thanks

Mac1205 · 02-06-2007, 02:20 PM

I dont think its essential to have a busines account however it would be useful when dealing with accounts.

Saajan · 02-06-2007, 02:27 PM

Quote:

Originally Posted by Ems1

Hi all,was just wondering if anyone can help me out with this question please.As a sole trader are you required to use business bank accounts or can you use a "normal" account,any help would be great thanks

Well since your a Sole Trader, a business bank would not be required. Once your ready to become a LTD Company then it's useful to have one.

Ems1 · 02-06-2007, 03:46 PM

Thanks for that Mac1205 and saajan,but what do you mean when you say it would be usefull???Do you mean the taxman would want it that way or merely just to simplify matters?

**MustHaveMobiles** · 02-06-2007, 06:35 PM

I think that most banks will notice the 'trade' element of the bank account and require you to upgrade to a business account. You should set up a business account anyway because you need to keep these transactions free from your own monies so as to make the accountancy elements as easy as possible. Also allows you to see your progress instantly without having to factor in your personal (non business related expenses)..

Ems1 · 02-06-2007, 07:16 PM

Thanks for that MustHaveMobiles,just wondering whether banks would cripple a soletrader with charges and politics??Do you know of any that don't? as i am not going to become Bill gates any time soon and i don't want to give all my profits to a bank manager

**MustHaveMobiles** · 02-06-2007, 10:18 PM

I've been running with HSBC for years and they are pretty good, build a rapport with your business manager and things will go well...

Ash_mk · 03-06-2007, 04:42 AM

Abbey do a free account.

http://www.anbusiness.com/

**MustHaveMobiles** · 03-06-2007, 09:18 AM

Free isn't necessarily the best, look at the service options that you get with the account also. After all you are trying to make this your living and the best option is paramount to support your development.

Supremetronics · 03-06-2007, 11:03 AM

I'd personally advise opening a sole trader bank account. Firstly as stated above, it will make accounting easier and will keep your personal expenses seperate.

Secondly having worked in a bank previously, i can say that if they do are not aware of you being self employed, and they suspect you of doing so they are legally obliged to report you to the police for suspected fraud/money laundering and also the tax man.

I have seen it happen many times to ebay traders who are also in full time employment. They may be doing nothing wrong however it can cause an inconvenience.

So unless you plan to trade on a very small scale i would advise opening a seperate sole trader account. Shop around and see who will do you the best deal