Bank account - business or normal current account?

[candlequeen]

What kind of bank account does anyone use? Is there any reason or benefits of using a business account rather than a normal personal current account if you work alone anyhow?

[Andrea08]

i just use my current account get a few cheques n the grant gets paid into it
so its been ok x

[Chatterbox Childcare]

I have 2 current accounts - 1 for my pay to go into and the other for personal DD's

If the HMRC audit you they will go through every account that you have so I can't see how having a business account will be a help

Beware that some banks charge fees

[candlequeen]

Thanks. I wanted to set up a new account so I can keep my childminding money separate. There is a business account with Santander that is free, but I would prefer just a normal current account. But I just tried to apply for a current account with Halifax and it just asked me to tick a declaration that I will not use this account as a business account including as a sole trader - so I am worried about doing that.

[marlee1986]

hi all i was told on my pre-reg childminding course that its illegal to run a buissiness from a normal acount, i could be wrong ???

ive opend on up with lloyds tsb it free for the first 18months then ill swap banks if they cant offer me something else.

xx

[juelmer]

I'm wondering this too!

I was kinda forced to open a business account with barclays which is free for the first year but then you pay for everything :panic: which isn't fair for such a small business.

I asked them at the meeting if I can just use my current account and they said no and no other bank will allow you either.

I've been in contact with NCMA who don't have any information regarding this and suggested to get in touch with CAB which I'm doing.

I'm not against a business account as it makes more sense to keep it separate but I am against paying for every little thing. Maybe they could do a special business account for childminders where we just pay a small yearly fee or something.
I'll see how far I can take it......

[MrAnchovy]

It's not against the law to use a personal bank account for your business, but it is probably breaking the terms of your contract with the bank, so your bank can tell you to stop doing it and open a business account instead.

Many, many self employed people including childminders do use their personal bank account for their business though: the bank is unlikely to know or even care very much unless you are paying in cheques from lots of families every week.

[Katiekoo]

My bank didn't give me a business account as I had to have £1,000 going in it every month which I can't say I'm anywhere near achieving yet! So I have two personal current accounts - I call one my work account. I'm useless at keeping my accounts seperate though even with two accounts!

[Chimps Childminding]

I just use my current account, but the majority of my parents pay cash, so I don't suppose the bank worry so much :rolleyes:

[marlee1986]

oh i was told it was but wasnt 100% on it, but like u said if u use a personal account, and the tax man wants to check ur record he will check all ur accounts but if u have a buisiness one they will only check that 1, mine is free for the first 18 months n then charge for everything so was going to have a meeting with them saying if u charge me i will move banks to get it free for another year or so ????

[karensmart4]

I only have the one current account, I don't want to pay bank charges and HSBC has never asked any questions. On my Bank profile I am a reg s/e childminder, and have been since 2002.