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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Using joint account for business?

7 replies

Skyvemind · 21/01/2022 10:11

(Name changed for this). Married for years and husband and I share finances, financial decisions and communicate well about it. Have taken a 15yr career break due to pregnancy, childcare and to be a carer and am now about to set up as a freelancer. We have a number of jointly held investments (share & ISAs), savings accounts and 2 joint current accounts, the secondary one being one that I mostly use for weekly household shop. DH works full time on a contract basis and his pay goes through an agency into a holding account where fees and deductions are made (I don't see it because I am not the earner) before being transferred to our current account from which monthly outgoings, mtg etc is paid. (I am confident that this is all above board and honest, it's just how it's set up as the payments go through an agency first.)
Rather than set up a new business account, DH is suggesting I just use the joint account as my new business account and send those details to our accountant so he can set it up with FreeAgent accounting software.
I can see the logic in this, however in practice it means that DH is a joint a/c holder on the bank account for my fledgling freelance business bank account - can make withdrawals and deposits and see transactions etc (he wouldn't. but still...). I don't suspect any malevolence behind this suggestion, or financial coercion, but at the same time I feel like I would like to manage the account myself and have it in my own name without oversight, even though I have oversight of all our other accounts, except the holding one that he had to set up as a contractor to process his payments.

AIBU to feel justified therefore in setting up my own separate bank account for this new self-employed business?

OP posts:
timeisnotaline · 21/01/2022 10:15

Not quite your point but it seems a terrible idea to have the one account for business and some personal/family money as well, asking for trouble! Business account should only be for the business. Setting up an account is easy so I can’t see a good reason not to open a set account for it.

Skyvemind · 21/01/2022 10:32

@timeisnotaline thanks for replying. Yes, I agree and should have said, the 2nd household account would be strictly allocated to the new business and no longer be used for household, those spends would all revert back to the main join account.
Yes, my instinct is to have my own business account, it’s just that our current suite of accounts are with one bank and it’s easier to port over details so I think that’s why DH suggested it.

OP posts:
HalfShrunkMoreToGo · 21/01/2022 10:34

Definitely a separate account and be very very rigid in your use of it for only business purposes. It will make your accounting and reconciliation of incoming/outgoing funds much easier.

Boood · 21/01/2022 10:36

You could come unstuck really easily with HMRC if you blur the lines between your business and personal spending. Keep it separate, and don’t allow anyone else access to it.

Hunderland · 21/01/2022 10:38

Mine goes through an account just in my name. Much easier to separate from the multitude of household bits that way.

I also get texts when payments have been made so can keep on top of invoicing easier.

Ariela · 21/01/2022 11:18

Much easier to go into a separate business account. Most offer free accounts for start ups/low turnover, so it's not as though it'll cost more. I think Starling Bank is a free one that seems to be well recommended.

Skyvemind · 21/01/2022 11:42

@Ariela thanks for the recommendation. Was just looking at Starling. Seems well reviewed.

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