Freelance self employed, I want a separate bank account for payments in out etc. Does it need to be a business account?

[Comfysock]

So average incomings will be between £300-500 each month nothing major.

I want a separate bank account so I can keep a check easily plus keep some back to pay tax at end of year etc.

What's best options?

Do I need a business account? Do you get charged for this type?

I don't see why you need a business acc

Just a bog standard current acc would do

You do get charged for a business account, if it's obvious it is a business account the bank may not like it.

Definitely a good idea to have a separate account to keep things transparent with no confusion over your personal spending etc. It’s not a legal requirement to have a business account as such, but some banks would insist on it for Ltd companies for example. A sole trader or freelancer can use a normal account though. Business accounts usually have restrictions like a certain amount paid in each month, and charges based on that but come with benefits like help with payroll/linking to external systems like Xero etc. I assume as you don’t need those type of benefits then a regular account will suit you. Something like Revolut, Starling or Tide Maybe?

Because payments will be coming in each month...prob from one account at mo...I wasnt sure if I need to declare this is business?

I have my current account with Santander.

It’s not a legal requirement to have a business ac but it might state on the banks terms and conditions that you have to tell them if you’re using it for business purposes. Definitely a good idea to have a separate ac though, as I said, keeps things transparent for tax etc.

I dont need any payroll and not Ltd company or need to link to anything...so nothing extra needed.

*I just want payments to come in
*Want to keep most of the money there as a type of savings
*Also keep there %age inreadiness for tax bill next year.

l already have a Revolut Account

I needed to as I became limited even though my income was only slightly more then yours. I would look into becoming limited, when I did it, it made more financial sense, it's very cheap to do and a business account can often be free for the first year or two.

If you’ve already got two separate accounts can you move to using one only for the business money? Save you opening another.

Open a Revolut business account, or a Wise business one (which pays good interest).

I'm a sole trader and opened a business account with Starling. It's free.

I’m a sole trader and I’m with Starling and have 2 accounts within the same app - my personal account and my business account. There is no charge and super easy banking. It makes my life so much easier to keep them separate.

What do you get as extra for a business account with Revolut or Starling?

My Revolut is something I used when a family member was abroad I could transfer money. Not used it for anything else so think I will use this for business at the moment.

Monzo have an excellent free business account

Totally depends on the terms and conditions of the account really. Santander do not allow business use of personal accounts and have been known to close accounts, and not just the one account, all accounts you have with them.

Quick question...so Im going to use my Revolut....the client doesnt need a Revolut account do they to pay into....I just state the sort and acc number on my invoice

Ahhh should be ok just if I need to transfer back and forth immediately via currency which I wont

I use mettle. It’s free and really easy to use.

Right not sure about Revolut, my frirnd did a test to transfer and her bank flagged up it wasnt a bank on their listing etc as it's Revolut who work alongside HSBC not an actual bricks and mortar bank etc. she said potenial clients and she would be put off by this.