Do I need a business bank account?

[timmyc]

I am entering the contract market and am ready to set up a limited company.

Am I required to use a business bank account to manage the company finances or can I set up and use a new (personal) current account with my current bank?

Thanks
Tim

[Crossroads]

The former.

For lots of reasons, not least:

1. Company money is just that. It is not yours.
2. Payment will be made to your company, not you personally, (so depending upon the payment method) payee name and bank account name will need to match!

[BrowneIssue]

Most (all?) agencies will only pay into a business bank account.

[fzbucks]

when i first started I created an online saver account - named the same as the company and gave the sort code account number and name to agency - they paid into it - I managed it just by doing transfers to my current account - did this for ever a year.

As far as I am aware there is no rule that says the bank account must be a "business" account.

[malvolio]

when i first started I created an online saver account - named the same as the company and gave the sort code account number and name to agency - they paid into it - I managed it just by doing transfers to my current account - did this for ever a year.

As far as I am aware there is no rule that says the bank account must be a "business" account.

Dunno if it's an actual law, but ISTR the bank will not be happy if you are using a personal-style account for business purposes. They have different risk profiles and have to meet different regulatory requirements on things like disclosure.

[rawly]

when i first started I created an online saver account - named the same as the company and gave the sort code account number and name to agency - they paid into it - I managed it just by doing transfers to my current account - did this for ever a year.

As far as I am aware there is no rule that says the bank account must be a "business" account.

Plus, you'll surely be getting paid NET interest. Business Banking is Gross.

[KevinT77]

I am entering the contract market and am ready to set up a limited company.

Am I required to use a business bank account to manage the company finances or can I set up and use a new (personal) current account with my current bank?

Thanks
Tim

Barclays are very good if you get the right manger.

[fzbucks]

Plus, you'll surely be getting paid NET interest. Business Banking is Gross.

correct

[balaplus]

Barclays have an attractive Instant Access Savings on business accounts..

Getting a good manager ... hmm.... not sure about it!

[swamp]

Abbey National Business are good.

Make sure you open two accounts: normal business account and a business reserve account. Save yourself the hassle of filling out two forms.

You should also apply for a company Visa debit card as soon as you're able. This will save on paperwork when buying things through the company (don't have to claim it back and put it on form P11D).

Also get a business mobile phone