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All you freelancers out there-do you have a separate bank account

(30 Posts)
bigspender30 Mon 11-Aug-08 20:56:56

for all things work related?

funnypeculiar Mon 11-Aug-08 23:12:56

Yup. Apart from anything else, much easier to keep track of al outgoings if when I mislay loose receipts smile

overthemill Tue 12-Aug-08 11:37:03

yes, kind of thought you had to for tax

Boco Tue 12-Aug-08 11:38:07

Yes.

BeckyBendyLegs Tue 12-Aug-08 15:41:05

I do. I have a business account with Nat West. As everyone above says, just makes it easier to keep track of expenditure and income when it comes to doing accounts, tax, etc. I periodically transfer chunks of money from my business account to the personal one.

Cappuccino Tue 12-Aug-08 15:41:47

yes

PInkyminkyohnooo Tue 12-Aug-08 15:45:53

Yes.I also have a mastercard for it which actually works as a chrage card- the balance gets paid off each month automatically. That way you only pay one outgoing payment charge each month, rather than each time you have to buy something, or withdraw cash from paypal account, for example. Most business acounts give you a free banking period to start you off, too.

funnypeculiar Tue 12-Aug-08 15:47:30

Mine isn't a business account btw, just a personal one (I though bank charges were higher with business accounts?)

ShrinkingViolet Tue 12-Aug-08 15:54:18

Abbey do free business accounts.

funnypeculiar Tue 12-Aug-08 15:55:41

Do they? What's the advantage of 'em, shrinkingviolet?

overthemill Tue 12-Aug-08 16:01:09

HSBC seems to do afree one for 18 months and their fees seem ok. that's what i've opened anyway.

the advantage is it entirely separates business from personal. for me i have had to set up a ltd company and therefore have to have a bank account with that name on it.
think it makes it nice and clear and easier for tax.

hassle to set up but from then on its ok. also discount for card services like accepting visa payments/debit cards

think clients of mine prefer it - makes it less personal so they can whinge!

ShrinkingViolet Tue 12-Aug-08 16:06:11

what, the advantage of Abbey over anyone else, or seperate business accounts? No particular reason for Abbey other than that when I opened mine, they promised free for life (don't know if that's still the case). They're as good(or bad) as any other bank IME. Have a weird online statement though.

Spereate accoutns are good, becasue when you hand it all over to your friendly bookkeeper, she doesn't need to wade through your Sainsbury's payments to get to the work payments. Or in the case of one of my clients, struggle to identify the Pizza Express receipts he's claiming as business from all the rest (he eats in PE a LOT hmm)

funnypeculiar Tue 12-Aug-08 16:10:28

No, sorry shrinkingvoilet, I meant advantage of business vs 'normal' ie personal account. I have a 'for work' account, but it's not a business one. IYSWIM.

I don't process small transactions, so the only advantage for me would be that the account would presumably then be in my business rather than my personal name (which actually would be a good advantage for me as I use my maiden name for business, but no-one will let me ahve an account in that name now...

PInkyminkyohnooo Tue 12-Aug-08 16:27:53

I used to have a normal, personal account, but a client years ago, a museum I think needed a business account to do a BACs payment into- there was some fuss about not paying freelancers into personal accounts, that's why I opened one, but it's handy to have an account in business name - I have to take out accounts with suppliers etc. and it looks much better.

It prolly depends upon the nature of your business.

motherinferior Tue 12-Aug-08 16:31:25

Yes. And a separate phone line.

TantieTowie Wed 13-Aug-08 10:01:43

I don't - I get paid into my personal account and then shuttle household money over to the joint account.

I don't think it matters so much if you're straight self-employed like me - I'm a freelancer - but I think it does if you have a ltd company or if your business finances are a bit more complicated.

But I'd be interested to know if I'm wrong...

motherinferior Wed 13-Aug-08 10:48:27

I'm a freelancer with a limited company. I have a business account, personal account and joint account.

A business account makes things so much easier for my lovely accountants grin

bigspender30 Wed 13-Aug-08 12:46:19

I am going freelance and I think my earnings will be so small and expenses pretty non existant that I will be doing the same as TantieTowie. Unless its illegal or something?? Will ask the tax people when I call to register.

cornsilk Wed 13-Aug-08 12:50:15

I'm worried now - hadn't considered this. I'm going to be doing tutoring as my main income - should I open a business account?

bigspender30 Wed 13-Aug-08 13:05:13

I'm the OP and I have no idea!!! You will need to register as self employed with your tax office but you cant register til you have started working. Not sure on the legalities. Am hoping someone will enlighten us

cornsilk Wed 13-Aug-08 13:06:30

Are you starting out as self-employed as well then?

bigspender30 Wed 13-Aug-08 13:11:59

yes-after a career break of 2 years and no income! I know the Tax office give you a good pack explaining everything.

clumsymum Wed 13-Aug-08 13:25:53

If you are just self-employed , then there is no legal requirement to have a seperate account for business transactions, but I'd reccommend it (I do bookkeeping for small businesses as one of my income streams).

This may be a 'business account' or any ordinary bank account you can get cheaply/free.

If you choose not to have a seperate account, then you must be absolutly rigourous about keeping notes/a spreadsheet with all your income and outgoings.

If you have a limited company, that MUST have seperate business account, in the company name, as it is a legal entity in it's own right.

bigspender30 Wed 13-Aug-08 14:28:38

thanks Clumsymum!

TishTashToys Wed 13-Aug-08 14:34:45

We do our business banking with Lloyds TSB - pretty good so far !!

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