New sole trader - personal or business account??

[blackstar]

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Hi all

I'm about to launch my first site and want to get my finances sorted. I'm only going to be doing affiliate marketing on the side for the moment, so I won't be turning over much. I but would like a seperate account away from my personal account, can I use a personal account as a sole trader, or do I need a business account.

If I went for a business account, I've seen a few free ones, but heard about some terrible customer service problems. Can anyone advise what to do??

[phildarv]

Get a business account - keeps everything seperate and much easier

Try abbey - free banking forever

www.anbusiness.com

[blackstar]

Hi

Thanks for the advice. Just a bit concerned going for one of these small business accounts, as it gets some terrible reviews on review centre. Do you use this account??

[Jubes]

I believe that as a sole trader there is no legal requirement to have a separate bank account. If you do open up a separate account (which as phildarv says is advisable), then as far as I know this can just be another 'personal' current account which you can then treat as your business account.

[phildarv]

I've used an Abbey business account for over 3 years with no problems

If you are happy using online banking/telephone support then it should fit your needs ok

The best thing is its free, unlike many other business accounts (which is what you need when your just starting up)

[hrbs]

Hi,

As an accountant specialising in new businesses, I always recommend opening a separate business account. It keeps your personal affairs private and your business affairs in one place - easier when completing your accounts/tax return - reduces accounting fees and, should HMRC decide to visit you, keeps them strictly focussed on your business and not asking potentially embarrassing questions as to your spending habits.

If there are any bank charges to pay, they are tax deductible and worth the benefit. Free banking, where available, is a bonus. Most banks give the first year free.

Good luck in your new business!

Keith
HRBS
Small Business Specialists

[essdeekay]

I've been self-employed since 1995.

I have approximately 50-60 "business" transactions per month.

I have two personal current accounts and have never had any problems.

Si

[blackstar]

Brilliant - thanks for all the replies guys!! Think I'll start with a second personal account for the moment, as I'm only going to be having a few network payments in each month. Once I'm a bit more set up I'll move to a free business account.

Thanks for the advice all!