Bank charges

[m4tty]

Hi,

Just wondered if you lot all use business bank accounts or private accounts and also does your bank charge you to pay cash in/cheques.

I'm with Natwest and have had free business banking for past few years and looked into charges today and they are

 

[kme]

This is what banks do mate - there isn`t really any such thing as "free banking", IMO.

I`d always recommend a business A/C rather than using a private account - the bank can be really snotty about that mate.

 

[ProDave]

Well I'm never one for following the herds.

I just pay everything into and out of my personal bank account.

I have not paid one penny in bank charges since charges were generally abolished on personal accounts something like 30 years ago.

As long as ALL transactions are recorded in your accounts, then there's no problem IMO with mixing business money, personal money, rental and B&B money all together.

What it DOES mean is you HAVE to keep your accounts up to date whenever you receive or make a payment. I get the impression that some (perhaps lazy) people don't meticulously record all their transactions, but just rely on looking at the bank statement to find out what they have earned.

Regarding cash, within reason I keep it and spend it, It seems a bit pointless to pay it in, then later go to a hole in the wall to draw some out. But ALL transactions, even cash transactions go in the accounts.

P.S my bank keeps trying to get me to upgrade to a "better" current account that has a monthly charge, but I have never found any reason why I would want to pay for benefits that are of no interest to me.

 

[septiclecky]

This is what banks do mate - there isn`t really any such thing as "free banking", IMO.I`d always recommend a business A/C rather than using a private account - the bank can be really snotty about that mate.

Think the tax man might have something to say as well if you use a private account for business purposes

 

[Robojin]

Think the tax man might have something to say as well if you use a private account for business purposes

Not sure HMRC really care what type of account you have so long as you keep good records, think they are more interested in those who don't declare all of their income in reality

I'd imagine if you're LTD company you'll not be able to get owt but a Business account, if you use a personal account and the Bank decide they don't like it move to another bank

 

[Cirrus]

Mine is a LTD co and I have a business account. We had 2 years free banking initially as I was a sole trader and at the 2 year point started attracting charges of about

 

[mikel]

I use Santandar internet business bank account, They don't charge for paying cheques or cash in, I can pay cash in at post office or branch and cheques get posted or paid in at branch. The only time I've paid any charges has been if I've overdrawn the account or not paid in

 

[wozz]

Im with natwest matty, I pay a monthly fee and pay next to nothing for transactions comes to very little usually as nearly all by money gets sent / received by BACSorFP.

I also pay for my personal account which is actually good if you use the benefits!

 

[m4tty]

How much is the bank charge if you don't pay in a grand mike please ?

 

[Andy™]

Just wondered do you lot just swallow the charges or don't pay cash in and use for materials etc.

i never put any cash into the bank - 85 p per hundred quid. so i just spand that on materials

 

[Cirrus]

Never, never, never pay cash in!

 

[professional]

Think the tax man might have something to say as well if you use a private account for business purposes

As long as your accounts are in order and you pay your dues, HMRC aren`t bothered which sort of account you operate.

 

[johninlondon1]

There is no requirement to have a business account unless your a Limited Company, You would be better having 2 personal bank accounts one used for private and other for your business transactions so that you can separate the two in order to make tax return easier. HMCE advise having a separate account for your business transactions but it is not mandatory.

 

[kerching]

I am with Santander. All done on T'internetweebymathingy. Never paid a penny in charges, not heard of the 1000 quid minimum though....[account is 3 years old so things may have changed interim]... :coat

 

[batty]

I am also with Santander have been since I started over twelve years back. The account I use was a none used private account. I don't think they mind as all my business is run through this account. Once or twice they have suggested I have a business account as its easier to get loans. I won't change unless I really have to as I have a lot of direct debits and standing orders coming out of the account and also a large overdraft facility.

 

[SLIPSHOD & SLAPDASH]

Any cash we get i pay into my private account & then transfer over on-line. The tax man is happy as its all easily traceable. Have to have a business account as its a Ltd company

 

[m4tty]

If you running a private account then is it just under your name as I the banks I've asked would allow it. Can you get a private account with your trading name on it or are you keeping it on the low that it's a business ?

 

[Evans Electric]

I'm with Natwest Matty ,I'd say if you doing subbing only and are a sole trader just keep your private current account as its basically wages going in.

As my work increased years ago they kept whinging every time we paid a cheque in " Is this a business account?" In the end I opened one but obviously they charge for each transaction .

Cheques in, cheques out, BACS , everything.

I can tell you how much they are later if you're thinking of changing.

 

[SLIPSHOD & SLAPDASH]

A private account is in your name or joint names only. You can not have a business name on a private account unless its something like 'Mc Donalds' or 'John Selectrical' and they dont notice, but you have to give proof when opening account nowadays.

 

[SPECIAL LOCATION]

In the days before the abundance of debit cards when cheque transactions were the norm..

there was a bigger case for a separate business account...

If you were purchasing some materials that exceeded the value of a personal cheque guarantee card,

Then a business cheque was generally treated far more favorably than a personal cheque.

Also when opening up accounts at some wholesalers they wanted a two or three references,

one of which typically was the Bank and the business account number.

A lot of that is no longer valid as transaction methods have changed..

and wholesalers want anyones business.. whether you are a trader or DIY bob!

I still think on a general image and professionalism stance a business bank account in the company name makes you look

a bit more pukka than the bloke who just wants cash or cheque paid to A.N.Others personal account.

All my invoices and quotes have info at the bottom on payment methods two of which are:-

Cheque payable to "Business Name"

Electronic transfer to "Business Name" "Acc No" "Sort Code"

If they want to give me a cheque to my personal name thats fine as well,

cuz I can still pay that into the business account.

But cant do it vice-versa Cheque payable to business name cannot go in personal account!

Especially if doing work for other businesses, they sometimes prefer to pay businesses rather then people..

(even if as a sole trader they are one & the same)

Also..

if at a later stage you are looking to raise some extra finance or expand the business,

a proven business account that they can see an easy figure of annual turnover can sometimes help put your case forward.

I am not a Ltd Co, Just a sole trader. now in 14th year..

I have always had a separate business account....

Whatever charges may or may not be incurred are irrelevant because any sensible business passes the business costs onto the customer anyway!!

No different from paying postage when ordering something on-line IMHO....

Stick a few quid on every job toward fuel, insurance, banking admin costs...

every other big business does!!!

As a related point.... No matter how many accounts you do or don't have ..

have one account set up, (Bank, Building society, Post Office, whatever), just to save the TAXman's money on one side,

so when the bills come, you haven't forgotten about it..!!!

:coffee