Bank Account

**em29** · 21-11-2010, 11:07 PM

Just wondering how many of you have business accounts?? I think I may have been a little slow on the up take as I went to the bank last month to open a business account as I had applied for a grant that could only be paid into a business account not a private account. The business advisor told me that I had in fact been laundering money by using my personal account

However, in my defence NO ONE not even the tax office have suggested that I have one., ANyway - I now have to change all my bank details with all my parents and voucher companies which always means late payments...

**michellethegooner** · 21-11-2010, 11:17 PM

really???? never heard of this, I certainly don't have a business account. My bank never said anything to me and they know I am a childminder and my money gets paid into my account

Penny1959 · 22-11-2010, 06:05 AM

As far as I am aware it does not have to be a business account - just a seperate account from your personal one.

I just opened another personal account with same bank. I also had a small grant - from local district council - and they were happy top pay into my new personal account (which in effect is my business account)

Penny

**em29** · 22-11-2010, 06:30 AM

Once again everyone is given different information! I couldnt even put my grant application in without having opened a business account.

Oh well, I am not too worried now about the money laundering thing and may not change my account details with parents until after christmas.
Thanks xx

**Chimps Childminding** · 22-11-2010, 10:17 AM

I have never had a business account, or a separate account for my cm

Most of my parents pay by cash anyway and it goes out as quick as it comes in

but those that pay by cheque I just pay into my normal everyday current account

Wasn't aware that I had to have a business account, or a separate one for cm - anyone know if this is the case??

**Childrenatheart** · 22-11-2010, 10:33 AM

Having a separate bank account for business purposes is a good idea and if you are ever investigated by the tax office its much easier to prove your business income/expenses if all your business money is kept separate. In theory even cash payments should be paid in then withdrawn so there is a trail. I have a business account now, that I got when I started offereing EYE funded places as our County Council insisted on it, and I have to say, I find I'm much more disciplined in my spending since i opened it. I worked out roughly what my annual income would be less specific business expenses such as insurance, magazine subs (ie things that didn't get mixed up in my household bills like petrol & food) and less an allowance for one off purchases such as toys, divided the remainder by 12 and then I transfer the resulting figure into my personal account each month as my 'salary'. It doesn't work perfectly as i have to adjust it to take into account unexpected spends, chn leaving etc but i do feel more in control. Its also made doing my accounts easier

**mrs_scottydog** · 22-11-2010, 12:10 PM

We we're advised on our courses to just use a normal account as we're only a small business. However when I went into my bank they had other ideas and said I had to have a business account. Of course they didn't have anyone there at the time to help me so I just applied for another normal account online instead. Hx

**SamBaker** · 22-11-2010, 12:15 PM

I spoke to my Dad only the other day about this, he used to work at Midland Bank/HSBC for many years, he said they like you to have a business account because they can charge you for having it, but there's no law that says you have to have one, especially as we are only a small business.

**ChocolateChip** · 22-11-2010, 01:19 PM

I went in to my bank asking for a business account, had done some simple projections of definite and potential earnings thinking they would want stuff like that but they didn't want to know and the lady actually advised me just to take out a separate current account, same as the one i already had. So that's what I did!

**Childrenatheart** · 22-11-2010, 01:46 PM

Mine is a business acct bt only because it was a free one, otherwise I'd have just opened a second personal one too

**Chatterbox Childcare** · 22-11-2010, 01:59 PM

My only advice is "change your bank"

I am with Lloyds and have no problems

**noble76** · 22-11-2010, 02:07 PM

Hi

There is no legal requirement to have a business account or a separate personal account for your childminding business you just need to keep good records of all money in and out.

However some people might find it useful to operate an account solely for their business. This is not a requirement of HMRC.

You can open an account at any bank or building society. If you have a business name it can appear on your back account, so it would appear as Mrs Abby Smith Trading as Little Stars. You would then be able to put cheques made out in your name and your business name into the account.

A lot of banks offer new business account holders free banking for the first year or two. Shop around and find one that is the best for you.

We hope that helps, we have written an article about being self employed.
http://www.nobleminder.co.uk/news-detail.php?id=21

**AliceK** · 22-11-2010, 02:37 PM

I have a business account which I set up about 6yrs ago not for childminding and the reason they like to try and sell you a business account is because they charge for EVERYTHING. I get charged for direct debits, paying cash / chqs in, it's ridiculous hence I don't use it very much.

There is no law that requires you to have a separate bank account for childminding although if you think it will make things easier then that's a personal decision but you could just open up another personal account not neccs have to be a business account.

xxxxx

**Playmate** · 22-11-2010, 02:49 PM

hubby and I had our money payed into our ordinary Halifax joint account until last year, they picked up on the amount of money being paid in from different people and at different times of the month and cash payments. They threatened to close our joint account if we didn't open a business account. They wanted us to make an appointment during business hours to open the account, so I said Ok but I'm bringing 6 children under 5 with us

They left us alone and then we went and opened a business account with Barclays

**rickysmiths** · 22-11-2010, 06:24 PM

I've never had or been asked to open a business account by Abbey/Santander. It all goes into my account and I keep a clear record of my income and my parents sign their page in my accounts book confirming what they have paid me each month so I don't see the problem.

**Annie_T** · 22-11-2010, 06:26 PM

i dont have a business account. i do have another account just for my cm money tho and its handy as it a cheque book account (not they be around much longer as they coming void soon

)
i can keep eye on what im earning and spending better

Money laundering is the practice of engaging in financial transactions to conceal the identity, source, and/or destination of illegally gained money

so you were not laundering money hun x

**manjay** · 22-11-2010, 06:32 PM

I think the OP had to have a business account to recieve the grant she had applied for. So for that reason alone I would open one. Then after a few months I would close it again and just carry on with my personal account

I worked in banking for many years and it is all about money and the charges the bank can sting you with. Some banks are more strict than others and for many it depends on the amount of transactions you have. Not much point them going through the procedure of opening a business account for you only to make £1.50 a month.

**BlondeMoment** · 22-11-2010, 06:37 PM

How the hell is that money laundering???!!!!
They're just trying to bully you!
I have two accounts. One is my personal account, and like you, I had to open another for my grant. So I simply opened another current account. I use that one to pay my work cheques into and I pay myself from it into my personal account. Simple as.

It's none of the banks business what I do with my accounts. If you tell them it's a business account they'll charge you.

Everyone is out to screw you over. Don't ever forget lol!
But I'm onto em

**Gherkin** · 22-11-2010, 06:53 PM

Mine just goes into the joint account because even if I had a seperate account I would just put the money in to transfer it to the joint account so it would be a waste of paper and energy.

**Chimps Childminding** · 22-11-2010, 10:49 PM

Originally Posted by cj1973

Mine just goes into the joint account because even if I had a seperate account I would just put the money in to transfer it to the joint account so it would be a waste of paper and energy.

Same here!!! Surely as long as I pay the inland revenue, keep paperwork up to date etc. its no one elses business

Banks are just out to make as much as they can from you