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what sort of account for payments?

(11 Posts)
EEatingSoupForLunch Wed 05-Mar-14 20:39:57

I am opening a new account to keep payments for my self employed work separate. I applied for an ISA as it had a good interest rate and planned to get my invoices paid direct into that. DH says I should open a current account as he has heard that you have to declare interest earned on the self employment tax forms and it is really complicated. Is he right? Don't current accounts also earn interest? What are you doing and can you advise me? Thank you!

TalkinPeace Wed 05-Mar-14 20:42:16

DO NOT USE AN ISA AS A BUSINESS ACCOUNT
then you cannot draw any of it back out

ISA interest would not need to be disclosed, but should be kept entirely separate from your business

current accounts earn diddly squat interest

if you are a sole trader, just use your normal bank account for now IMHO

Hoppinggreen Wed 05-Mar-14 20:56:29

Business accounts don't pay much if any interest and often attract bank charges but that's just how it is.
An iSA is totally unsuitable as a business account.
Some people do just use a personal account but I'm not sure if the banks generally lie that as they like to charge for business accounts ( although I did get 6 months free)

EEatingSoupForLunch Wed 05-Mar-14 22:11:59

Thank you both. Scrap the ISA idea then! My normal account is joint with DH so I'd prefer to keep this income separate. I am a sole trader so maybe new current account then?

EEatingSoupForLunch Wed 05-Mar-14 22:12:11

Thank you both. Scrap the ISA idea then! My normal account is joint with DH so I'd prefer to keep this income separate. I am a sole trader so maybe new current account then?

EEatingSoupForLunch Wed 05-Mar-14 22:12:35

Sorry about double post!

TalkinPeace Wed 05-Mar-14 22:13:37

yup, any ordinary current account should do the trick
I ran my business through a joint account up till I went limited - the bank never seemed to notice

WilsonFrickett Fri 07-Mar-14 00:37:20

Yes, just open a normal current account. Don't tell them what it's for though or they'll tell you you need a business account - and you honestly dont. I used to work for a bank and it was a rule you had to have one of their accounts to receive your wages, but our main current acc was completely different, so i now use that old account for my business. You just need to be able to see all your work transactions in the one place, that's all.

NigellasDealer Fri 07-Mar-14 00:44:38

business accounts attract a lot of charges.
i now use PayPal, you can get a MasterCard connected to it, it's brilliant.

TalkinPeace Fri 07-Mar-14 16:03:11

SAntander's account is still free
as is the Co-op if you are an FSB member

whatdoesittake48 Mon 10-Mar-14 07:26:19

My husband and i are both self employed and we use our joint account for everything. it saves us the hassle of having to transfer funds.

that said - it can be tricky to keep track of everything and to see exactly how you are doing in terms of incomings and outgoings.

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