Business Bank account recommendations

**swamp** · 3 December 2010, 22:55

Originally posted by tulipz View Post

Hi All,
I am new to contracting and I am yet to set up my Business account.

Options I am considering are:

1. RBS Direct business account - Free
2. Santander Free Banking Account (Abbey or Alliance)

I am looking for recommendations please.

One more question. I am just about to register my Ltd company. Do I need assistance in setting up the company? I was quoted GBP 120 for it....is it worth it?

Cheers,
Tulipz

Stop right there!

Once you have your first contract in the bag, the first things you should do are:

1. Get an accountant (should be one who understands contracting)
2. Open business bank account (Sandander are okay)
3. Get a credit card (pref good reward card)

Your new accountant will set up your company and steer you through applying for VAT Flat Rate Scheme and other stuff. They may also help you with 2. Your accountant can and should be doing this for you -- this is what you pay them for!

All you actually really need 9am Monday morning on the first day of your gig are a signed contract with your new Ltd company and a credit card. Bank account and VAT can follow later.

**Wanderer** · 4 December 2010, 09:20

Good advice from swamp.

Depending on your client, you may need Professional Indemnity insurance too.

Have a look at the PCG's website, they have lots of good advice there. They will set you up with a package with everything you need to kick start your contracting or at least give you a checklist so you can shop around for all the stuff you need. Watch out doing it piecemeal because there are hidden traps that can cost you a lot of money if you get it wrong.

**VectraMan** · 4 December 2010, 09:41

FWIW I went to somebody who setup the company and "helped" with bank accounts etc. It meant I ended up with an account in Manchester, which then proved to be a PITA with sending off things and phone calls. With hindsight what I should have done is setup the company then walked down to the local high street and opened an account there. I'm not sure there's a lot of difference between the major banks, but I'm with Barclays.

There are people who will register the company for you for <£30.

**Waldorf** · 4 December 2010, 09:45

Nixon Williams supply new clients with a limited company free of charge, as for banks I use Cater Allen who have been very good no problems. I use Qdos for insurance etc.

**craig1** · 4 December 2010, 11:02

I have a FSB (federation of small businesses) membership and that comes with preferential banking with the Co-op. I've tried a few banks over the years and found the Co-op are a decent bunch and better than the other high street banks that pretend they can do business accounts. Add in that completely free banking (certainly for what a contractor does anyway) and a £25 annual bonus and it beats the others hands down. Have to make sure you have a local branch though, same with any bank.

Co-op online banking is fairly limited but certainly more than good enough for what I need.

If you've got a decent personal credit record and have set up your company then you can get a business bank account with any of the banks fairly easily. I'd recommend getting it done early. Same with a VAT account. Makes you look a bit more professional and less of a contracting newbie. It also gets you off on the right footing with all money transactions done through a company account, even if it means loaning your company money to start with; this is a great habit to get into, do everything to do with your company through the company account and do not ever mix business and personal banking.

On setting up your company, you can do it yourself if you're moderately intelligent. See Companies House for guidance.

**Clare@InTouch** · 4 December 2010, 11:51

When you set the company up just make sure it's done right - if you intend having more than one shareholder it can be done on incorporation for example, and if the regiestered office and service address is set to your accountants office then you can avoid you home address ever being public. You can certainly get it done cheaper than £120 too.

If you set the company up yourself make sure you ensure you set it up as a company limited by shares rather than one limited by guarantee.

I've always found Cater Allen to be good as far as business banks go.

**too_many_details** · 13 December 2010, 15:25

I finally left Cater Allen a few months ago to go to HSBC.

Cater Allen were perfectly fine for day to day banking but I was frustrated that they hadn't implemented Faster Payments. In fact, neither has most of Santander-owned banks like Abbey National.

HSBC will transfer my salary/dividends within hours (even at weekends) to my personal First Direct account.

If you do most transactions electronically, there's no reason to be paying any banking charges.

Business Bank account recommendations