Self employed bank account - which one?

14
Found 29th Feb 2012
need to open a bank account now that i am self employed

probably wont be borrowing any money from bank, just to deposit away more than anything

which one is best/cheapest?

thanks in advanace
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o/h uses santander..i know he wont pay fees so im guessing it was cheapest.
We have a free business account for life with alliance and leicester which became santander. Not sure if its still free for life though.
Look at the promotional rates, how long they last and what the rates are at the end of the promotion. Most banks seem to have two years as their promotional offer period, so keep an eye on the rates after that, you'll be very suprised at how high they can be for a small business.
gavjbrown

We have a free business account with alliance and leicester which became … We have a free business account with alliance and leicester which became santander.


i think this is what he has..
being self employed, you don't have to open a business bank account.
doritos

being self employed, you don't have to open a business bank account.


^^^^^ This

and avoid santander at all costs!
been told by accountant to set up as a LIMITED LTD company

and that i will need a business bank account in business name

(thanks for the replies so far

doritos

being self employed, you don't have to open a business bank account.



I use my normal account, didnt realise you even had to? are you taking direct payments from customers?
adam2116

been told by accountant to set up as a LIMITED LTD company and that i … been told by accountant to set up as a LIMITED LTD company and that i will need a business bank account in business name(thanks for the replies so far



But what are you likely to even turn over?
Is the business going to be profitable in year 1-3?
What is your business dealing with?

I for one am self employed, and would rather pay the slight extra in tax (than ltd company), than have my accounts published for all to see.

AND: Do not even think of being VAT registered yet, if your accountant has suggested that from the offset I would change accountants.
Edited by: "doritos" 29th Feb 2012
adam2116

been told by accountant to set up as a LIMITED LTD company and that i … been told by accountant to set up as a LIMITED LTD company and that i will need a business bank account in business name(thanks for the replies so far



So, not self-employed then; you will be an employee of your Limited Company & most probably sole, or co-share owner. Most likely also a Director, or the Company Secretary.

However, I am guessing, you will not be "self-employed".
You don't have to be limited company but it can be tax efficient to be. It will depend on your business, circumstances and other stuff but only go limited if you need too. Limited company has it's benefits ie. cheaper tax, you're not personally liable for company debts (unless you sign a guarantor).

As you're other post - I would stick with your account to set up the company as they know about your requirements and will help you from making a mistake when registering. Doing yourself isn't difficult but if you do make a mistake, then the repercussions can be a pain.

I have just switched my banking from Santander to HSBC which offers free business banking if you don't do cash transactions. Santander started taking the pee with charges and support so went with HSBC as I got to know my local business bank manager through my networking.
I went with HSBC, I found having a business account was easier to keep everything separate.
adam2116

been told by accountant to set up as a LIMITED LTD company and that i … been told by accountant to set up as a LIMITED LTD company and that i will need a business bank account in business name(thanks for the replies so far



so you wont be self employed?
Best setting up business banking to keep details separate.
It may be worthwhile charging vat at 20 percent, signing up for flat rate vat and only paying 12 percent. Can I ask what sort of business? Are you freelancing by any chance?
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