15-10-2012, 20:08
I've taken advice on this very issue from my accountant and just to be sure I have spoken to my bank to make sure what I am doing is okay with them as I pay in large amounts of cash at fairly regular intervals.
Like you, I run two accounts, both of them personal current accounts. I pay all of my earnings into one, then I transfer money out of that account (usually the day I pay it in!) into my other current account and my savings accounts or where ever I need the money distributed to. All of my personal stuff comes out of a separate current account.
I also keep two credit cards (well, three actually... but one of them hardly gets used) again one is for business and the other for personal. The business one gets paid be a DD from my "business" bank account and the other from a DD in my "personal" bank account. The only other payments which regularly comes out of my "business" account are my DD for my national insurance stamp and twice a year my income tax payments. Otherwise it is just incidentals really as most stuff I buy I buy on my "business" credit card, which again is actually a personal credit card.
Both my bank accounts are with the same bank (First Direct) and both are their personal "1st account" type... they don't actually do business banking, but HSBC who own First Direct do.
Like I said... I spoke to my accountant AND to my bank about this, and also went to see an HSBC small business advisor just to be absolutely sure.
My accountant said that a business as simple as mine didn't need a proper business account and that actually it would cost me money to use one as they charge for their services where as personal accounts are generally free.
HSBC said that they would not really be interested in giving me a business account unless I am either paying in a lot of cheques, am VAT registered or am paying staff payroll from my bank account, none of which I do. Beyond that, for the turnover I have and the number of transactions I make each month they recommended that I continue to use a personal current account.
I spoke to First Direct and told them what I was doing and why I was doing it (i.e. to keep my income separate from my personal spending just to make accounting easier) and they were fine with it. They said that they would only get twitchy about it if I was paying in more than £10K in cash in one go, otherwise their view was the same as HSBC's.
Hope this helps.
x
Like you, I run two accounts, both of them personal current accounts. I pay all of my earnings into one, then I transfer money out of that account (usually the day I pay it in!) into my other current account and my savings accounts or where ever I need the money distributed to. All of my personal stuff comes out of a separate current account.
I also keep two credit cards (well, three actually... but one of them hardly gets used) again one is for business and the other for personal. The business one gets paid be a DD from my "business" bank account and the other from a DD in my "personal" bank account. The only other payments which regularly comes out of my "business" account are my DD for my national insurance stamp and twice a year my income tax payments. Otherwise it is just incidentals really as most stuff I buy I buy on my "business" credit card, which again is actually a personal credit card.
Both my bank accounts are with the same bank (First Direct) and both are their personal "1st account" type... they don't actually do business banking, but HSBC who own First Direct do.
Like I said... I spoke to my accountant AND to my bank about this, and also went to see an HSBC small business advisor just to be absolutely sure.
My accountant said that a business as simple as mine didn't need a proper business account and that actually it would cost me money to use one as they charge for their services where as personal accounts are generally free.
HSBC said that they would not really be interested in giving me a business account unless I am either paying in a lot of cheques, am VAT registered or am paying staff payroll from my bank account, none of which I do. Beyond that, for the turnover I have and the number of transactions I make each month they recommended that I continue to use a personal current account.
I spoke to First Direct and told them what I was doing and why I was doing it (i.e. to keep my income separate from my personal spending just to make accounting easier) and they were fine with it. They said that they would only get twitchy about it if I was paying in more than £10K in cash in one go, otherwise their view was the same as HSBC's.
Hope this helps.
x
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See me on AdultWork
Call 07856 061172
Follow @Trinity_Belle on Twitter
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