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Original poster

Business Bank Accounts

30 replies

NotAnApple · 20/12/2010 11:34

Are they all much of a muchness or are there any I should avoid/look into?

I am starting my own business, due to launch (if that's the word) in February but am starting to advertise for clients and take bookings etc.

I have looked at the Natwest one which looks very comprehensive but really, I don't know what I want in a business account so have no idea how to appraise them.

Any advice?

OP posts:
ItsAHollyJollyTee · 20/12/2010 12:21

Do you absolutely need one? I run my business money through our regular Current Account, rather than pay the fees for a business account.

Of course, I only have 2 clients right now, so it's easy to separate out what's for my company and what's for our family.

I asked HMRC and they say you do not need to have a business account if you can keep things very clear for them.

I am waiting until I have a few more clients before I open a business account!

Trifle · 20/12/2010 12:25

Dont get a business account. I am self employed and dont have one (Nat West turned me down despite banking with them for 20 years). Blessing in disguise as I pay no bank charges. My accountant said you dont need a busienss account. Most of my clients pay via on-line banking, some still write cheques but no one has queried making the cheque out to a personal name as opposed to business one. Plus it's also two fingers up to the bank. Why pay for something you can get for free.

arentfanny · 20/12/2010 12:27

We have a business one, because we wanted to be able to take deopsits and payments by card. We have a NAtwest one.

amothersplaceisinthewrong · 20/12/2010 12:30

If you are a limited company the company should have its own bank account.

I would personally avoide Nat West like the plague. That's because we used to bank with them (company and personal) and they made so many mistakes that I switched to Bank of Scotland who were offering a good deal at the time (no bank charges - though I suspect that may have changed for new businesses now).

Original poster
NotAnApple · 20/12/2010 13:02

Thanks for all of your replies.

Hmmm, I was advised that if I am a limited company then I should get one. I won't be trading in my name, I don't know if that makes a difference.

I do have an account which I don't use at all for personal use, it's left over from my house-share days when we used to split bills. I could use that and keep transactions very separate. Would the bank have an issue with me running my business through a personal account though if they could make money from me having a business account? I don't have a card for the other account, I can just see it, sat with it's 1p credit balance when I login to do my online banking!

OP posts:
mranchovy · 20/12/2010 13:08

As a small business you will get appalling service from all the banks I am afraid. I agree with the others - use your personal account until you decide that you would be better off as a Limited Company (which might be the case anyway - what do you plan to do?)

I use HSBC and I like their online banking service, the CoOp I have also heard good things about but they don't have a branch network if that is important to you, others I only hear bad things about.

Original poster
NotAnApple · 20/12/2010 13:14

Oh ok, I shall use the account I have that doesn't have anything in it. It has no direct debits etc attached to it so it will be as straight forward as a new account to keep track of expenses and I assume that is the main reason for having separate accounts.

I had planned to set up as a limited company, I thought I needed to if I am trading under a brand rather than my own name. I shall look into that now too.

Thanks so much for your help!!

OP posts:
ItsAHollyJollyTee · 20/12/2010 13:18

I don't trade under my own name, but a company name, and am Self Employed, not Limited.

I think you only have to be Limited if you have employees, but I may be wrong on that!

HMRC does some excellent free seminars about this sort of thing. If you go to their website you can sign up for one in your area.

Original poster
NotAnApple · 20/12/2010 13:27

Thanks ItsAHollyJOllyTee I shall have a look now. Not as straight forward as it all first seemed!

OP posts:
mranchovy · 20/12/2010 13:37

No, employing people is nothing to do with trading as a company - you can have a company that doesn't employ anyone, and you can employ people even if you are self-employed yourself.

Holly you trade under a business name, not a company name.

Business Link is the best place to go for all-round information.

The main reason for registering and trading as a company is to avoid personal liability if something goes wrong with your business.

santadefiesgravity · 20/12/2010 13:43

If you join the Federation of Small Business then you can get a Co-op business account with no charges.

My local town has a co-op branch (and being 5 mins walk away from the dc's school it is very handy) so it is ideal for us.

However we have in the past had very good service from HSBC its just their charges were high.

WestMidsAccounts · 20/12/2010 13:46

NotAnApple: speak to an Accountant.
Set things up properly in the first instance and it will save you a lot of heart-ache (aka save you money) in the long run.
Once the business is up and running then you may be able to do without your Accountant but please make sure that it is set up properly/efficiently in the first place.

ItsAHollyJollyTee · 20/12/2010 13:51

Westmidsaccounts the HRMC classes teach you how to do that, without paying an accountant. Sorry if that leaves you with less clients. Grin

highriggs · 20/12/2010 13:59

I use business banking direct with RBS as it is free. They send me envelopes for my cheques. BACS payments are free , I have two accounts, one current and one deposit, current account is swept into deposit every night. Can do payments online, direct debits, standing orders, have visa debit card with the account and it doesn't cost a thing.
Been with them ten years and would recommend.
The only thing I don't get is a business advisor.

WestMidsAccounts · 20/12/2010 14:03

LOL @ HJT

I was going to give an example of how complicated it can get but the sentence go so convoluted that I gave up! The HMRC will give info but it won't give advice. For example on the 'employed or not' question above: if you are self-employed then you are not employed [d'oh emoticon] which means that you do not need employers' liability insurance. If you have employees then ELI is a legal requirement, even if the only employee is yourself.
So a quick 'shall I be self-employed or a Ltd Co' decision could cost thousands of pounds over the years in insurance. Making the right or wrong decision at the outset can have big implications, and the employee question is only one of many factors to consider.

Original poster
NotAnApple · 20/12/2010 14:05

Ooh Thank you highriggs I shall go and look at that now.

OP posts:
highriggs · 20/12/2010 14:24

It is really good as you can do everything on line such as at the end of the month you can do your reconciliation without waiting for the bank statements. Also I think you could be a Sole Trader . Check out of that is possible. Also join your local FSB as the one in our area is very active with networking lunches and lots of advice, also with the membership comes insurance for a tax investigation which can be very costly.

Much would depend on what you decide to be, on the nature of your business ie whether you decide to be a Sole Trader or a Partnership or a Ltd Co. This is possibly more important than a bank account at this time.

Original poster
NotAnApple · 20/12/2010 14:32

I have just found something on HMRC about sole trader/ltd co etc so I think I am just a sole trader actually.

I looked at FSB but it seems pretty expensive and I am not sure if I'd benefit from it.

Do you think it's worth the membership fees highrigg?

OP posts:
orangina · 20/12/2010 14:35

Get a business account. Much easier to keep everything clearer.

I have a business bank account w Santander (opened it when they were Abbey).

Free banking, they have always been v helpful and I do nearly everything online. If you are likely to want to do a lot over the counter, it may not work for you, sa I think it is promarily done with machines,, online and by post.

Previously had business bank account w Lloyds TSB (as I already had a personal bank account with them). Terrible. And charged me a LOT.

Am v happy w Santander. Think Halifax offer similar free business banking, might be worth looking into.....

Original poster
NotAnApple · 20/12/2010 15:32

Thanks Orangina I don't expect to be handling cash but if I did I could probably pay it into my personal account and transfer it, or does that look like some dodgy money laundering....

Wow, I am struggling to remember why I wanted to work for myself now...

OP posts:
Original poster
NotAnApple · 20/12/2010 16:20

ooh Santander one looks good, thanks Orangina Xmas Smile

OP posts:
Bramshott · 20/12/2010 16:36

Santander are no good if you are ever likely to have to pay in cash, but fine if all your business receipts are by cheqe.

As a business customer, you have to pay in through the machine in branch, rather than over the counter, which is fine if you have cheques and notes, but impossible if you have coins - they are not allowed to change them at the counter, neither are they allowed to accept them, and they can't offer any explanation of how you are supposed to get the cash into your account Hmm.

orangina · 20/12/2010 16:55

Yes, if I need to take out larger sums for any reason (ie, whatever I can't take out through the cash machine) I have to transfer it to my santander current account and do a counter withdrawal from my current account (if that makes sense). They also give hyou a debit card from the business account, and you can get a business reserve account (like a business savings account) that you can skim money to from your business account (was useful back in the days when a savings account didn't just pay you fark all....)

Grin

Yes Bramshott, you are right. I am paid either by cheque or by direct transfer. I don't really deal with cash at all. So it suits me.

HouseOfBambooootiful · 20/12/2010 17:00

If it's all free then you may as well get a separate business account to keep things clear and separate. But check all charges carefully. I opened a Lloyds business account but closed it when I realised how expensive it was - doh.

I opened a second Current account instead which is free (when in credit) and use that instead.

TracyK · 20/12/2010 17:04

Ask them how long you can access your online transactions for.
Barclays is only 30 days and then they 'disappear' and you have to pay for reprints - unless you never lose your posted out copies.
My client always loses his and can never just go online and reprint - its a pia!
I am with A&L/Santander - which is free if you pay in £500 min a month - and I think you can reprint up to a years transactions.

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