Business account...

[son77]

Hi, I was wondering if anyone can tell me if we are meant to open a proper business account with the bank for our childminding income? Ive been minding 5 years now & never have but just been told we should as we are a business.

Anyone in the know?? Thanks

[Chatterbox Childcare]

If the HMRC come in for an audit they will go through everyone's account regardless of whether they are part of the business or not.

I have 2 trading accounts, 1 for my work money to come in and 1 for my personal expenses to go out. I transfer the funds as I need to so that everything is paid

As long as there is a clear paper trail of all your monies I cannot see why you would need a separate account.

If you do decide to get a business account watch the costs.

[son77]

I have a separate acc for childminding just not a business one & I don't particularly want one either but a friends OH works in a bank and says if your self employed, you are running a business so should have a business account or it could be deemed as money laundering???

[Sunflowers]

I'm in the process of opening one. i have membership with the federation of small business's and via them have access to a fee free business account.

I'm finding the FSB invaluable in a lot of ways and can even afford to offer card payments to parents!

[nikki thomson]

I don't have a business account and my brother in law is a tax man for the inland revenue and he says you do not have to have a business account, I don't even earn enough to pay tax never mind have a seperate account . X

[Chatterbox Childcare]

Take no notice

[kayjay]

Hi there - I have just posted a message about a similar thing - trying to find out if the benefits to having a business bank account are actually worth it. I was told by my bank's business advisor that I should open a business account because 'the little shop down the road has to pay charges for its transactions so why shouldn't you' but I did think that that was a way of scaring me into opening an account and I wasn't very impressed!

[greenfields]

I do think that from a bank's point of view then yes, we should have a business account as we are self-employed and are running a business, no matter how big or small! Not all banks charge for a business account.

My personal opinion is that it shouldn't matter because you will have all incomings and outgoings recorded.

I'd definitely go for a seperate account for parents to pay me. Just so I can easily track payments.

I'll keep watch of this. Funnily enough, Son77, my OH manages business accounts at a bank and he says the same thing as your friend's OH!

[son77]

OMG greenfields, how strange?!

[Playmate]

I think you just need to be careful how many incoming transactions you have or the banks can be funny. We always used our ordinary joint account, but as our business grew and we landed up with lots of incomings (13 children on role) with voucher payments and parental top ups. The bank picked up on this and realised we were running a business and threatened to close our account unless we opened a business account :panic: So we went to another bank and opened a business account :D. We are only charged if we deposit cheques which is not aproblem as all our pay by direct transfer or standing order.

[greenfields]

How do vouchers work? How would you bank them?

[aly]

How do vouchers work? How would you bank them?
my vouchers are actually sent via bank tranasction so i do nothjing with them...but if you have the paper ones you treat them as cheques.

[Cariad]

I was just planning on opening a separate current account as this is what we were advised to do in the pre reg course. I have heard that the cooperative bank have free business banking but haven't looked into it

[aly]

I was just planning on opening a separate current account as this is what we were advised to do in the pre reg course. I have heard that the cooperative bank have free business banking but haven't looked into it
don't take everything said at pre-reg as gospel...there's been loads of instances where they said certain things were a must which was ridiculous.

We do not HAVE to have a bank account, as long as we can show our money in, it will be fine....it's just the banks trying to bully us into opening accounts, as they get bonus' for each account opened.

[son77]

Well my bank know im a childminder & asked if I wanted to open a business acc a little while ago but I said there was no point & they agreed (that's Barclays). I have parents pay by direct debit & by vouchers (also cheques in the past) & never had a prob.

[greenfields]

Thanks.
Son, did you open a seperate account within the same bank company?

[son77]

Yes I did, both Just standard current accounts.

[acorns]

I used to manage business accts & be a small business advisor before childminding, I used to tell customers that they should have a business account, but the only reason for that is that it's the banks view that personal customers don't pay as they are salaried but as a business & (hopefully) making a profit we should pay the Bank for doing the transactions for us as it becomes a business expense. Having said that, I don't have a business acct and as long as you don't have several credits from parents & voucher companies going through you don't need one. The bank won't pick up on it unless they have a reason to look at your acct (e.g.if you went overdrawn or wanted a loan or had lots of credits). if you ever wanted to borrow from the bank they would want to see how the business is run financially & that can only be properly seen if the business income/outgoings is from one acct. It's got nothing to do with money laundering, unless you were putting £100's of £'s through in cash each month to your personal acct!! & in any case you can always prove that the money came from parents & not the proceeds of crime!!

[greenfields]

Well I have decided on a seperate account for childminding because it'll be more convenient for me, but a current account. If my OH reports me for money laundering so be it... I'm not banking with his bank anyway. :laughing:

[son77]

Well I have decided on a seperate account for childminding because it'll be more convenient for me, but a current account. If my OH reports me for money laundering so be it... I'm not banking with his bank anyway. :laughing:

Go for it!!!

[Chatterbox Childcare]

Well I have decided on a seperate account for childminding because it'll be more convenient for me, but a current account. If my OH reports me for money laundering so be it... I'm not banking with his bank anyway. :laughing:

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