Bank account advice for Small Start Up Business

[Matthew Storrs]

Fair enough, I'd have thought if you had all your statements and receipts to prove how could they take issue? If that is the case though would they also take issue if you were running one account for personal and business, because if so I can't see why they'd take issue running 2 of the same. At the end of the day there is nothing they can do about it if you can prove you are not cheating the system and in the case of the sole trader staring out many of his expenditures may be both business and personal- i.e. Running a pickup or buying a new laptop etc

[waterbuoy]

The inspector at the first inspection said just about the only thing I had done right was to have separate bank accounts for personal and business use. Believe me that during an inspection you want them 'onside' or they can simply make life hell for you - not everything is as objective as you might think.

 

My second VAT inspector came back 8 times over two months, following which I had to pay the princely sum of £8.40 - but had lost over £2k in turnover.

 

Keep it simple and transparent, and above all make sure there is a paper trail for everything.

 

Back on thread, I use the Clydesdale as I'm based in Scotland and the monthly charge is £5 per account which I don't think is too bad to be honest.

[aspenarb]

Choose a bank that still has branch managers and build up a decent rapport with him/her. If and when you need them its a lot a lot easier than banks that are run through faceless call centres.

 

Bob

[simonm]

Why does it matter how many accounts you have? As long as your statements match your invoices and its all legit?

I have 4 business ones 1 where bacs go the other whilst still in free banking period gets cash and cheques paid in, the other is a vat account and the final is a business savings account. Never been an issue, everything is above board as bookkeeper stays on top.

[Richard 1234]

Why does it matter how many accounts you have? As long as your statements match your invoices and its all legit?

I have 4 business ones 1 where bacs go the other whilst still in free banking period gets cash and cheques paid in, the other is a vat account and the final is a business savings account. Never been an issue, everything is above board as bookkeeper stays on top.

 

 

It doesn't matter at all!

Just keeping stuff separate and using a business account will make life easier if they do come looking at your accounts.

Also you really should not be using a personal account for business as it's not allowed by the banks (look in the terms of personal accounts those of you who are advocating doing it!) besides that if you can't afford a few quid a month to pay for it you are doing something wrong.

 

 

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[skyhuck]

It doesn't matter at all!

Just keeping stuff separate and using a business account will make life easier if they do come looking at your accounts.

Also you really should not be using a personal account for business as it's not allowed by the banks (look in the terms of personal accounts those of you who are advocating doing it!) besides that if you can't afford a few quid a month to pay for it you are doing something wrong.

 

 

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This is the voice of someone who will never be wealthy, its not about what you can afford, its about avoiding needless expense.

[simonm]

This is the voice of someone who will never be wealthy, its not about what you can afford, its about avoiding needless expense.

 

It costs me £6 a month for the Barclays account, Barclays savings and vat account are free as linked into main business one, hsbc is in free banking period so no account fee and can pay as much cash or cheques in as I like for 18 months. When. The 18 months is up I will close that account and look for another bank with free banking period. I was paying £40 a month paying everything into Barclays with charges now I only pay the account fee of !6

[swinny]

What sort of money are you people turning over if only using a personal account? Cant be vat registered or near there surely...

[skyhuck]

What sort of money are you people turning over if only using a personal account? Cant be vat registered or near there surely...

 

Why?

 

I passed the VAT threshold while still running my business from a second personal account.

 

I only opened a business account when I started my limited Co.

[Mark Bolam]

 

 

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