Setting up a Small Business - Do I need to open a business bank account?

confused0258 · 11-05-08

or can i just open a seperate bank account in my name and do all my business through that account?also if i were to use say £500 of my own money as startup costs and the business ran at a loss for 12 months or 2 years apart from closing the business would i be able to claim any tax back? Im thinking keeping my job and doing this as a side line? thanks

Tom19991090 · 11-05-08

If you are a sole trader then you could trade through your own bank account. I would advise however that you keep this account for only business transactions i.e. use a different one for personal transactions.Re getting tax back you should really discuss this with your accountant (you should have one of these too if there is any real money involved).

TraceyB · 11-05-08

Some banks will offer you free business banking for the first year, but after that they will charge you for every transaction you make.If you have more than one bank account already, I would suggest you keep one for personal use and the other for business, and make sure all the money you earn from your business goes into the one account. You can ask customers to make cheques to you personally, you don't have to have payments made to your company name.As long as you keep track of all your income and outgoings (I would suggest a simple Excel spreadsheet) you will be able to complete your tax returns without too much difficulty.

raysor5863 · 11-05-08

If it is a limited company you will need a business bank account. If not you need a sperate bank account for the business(for the tax man)I don't think you could claim tax back for a loss. Ithink the company would have to be a qualifying company for EIS or something

Kev · 11-05-08

Just open a seperate bank account so that everything is seperate from your personal account. It doesn't have to be a proper business account.I don't know the ins and outs of tax though.

MikeM3912 · 11-05-08

no you dont need a business account but it is recommeneded - banks like abby do free banking for small businesseswhatever you do talk to an accountant NOW before you start - it will save you a fortune!and yes you will get your tax back - this is a directors loan to the company...