Is this right?

**Fabby** · 29-03-2010, 03:54 PM

I have just called my bank up to create a 2nd current account so i can do all my childminding banking through this additional current account but they said because it would be for my business, i would HAVE to open a business account because it would be illegal not to...... is this right?

**Mookins** · 29-03-2010, 03:57 PM

cobblers...as far as i know you can run your business through a current account

x x

**babs** · 29-03-2010, 04:04 PM

u can run your childminding business though your normal account i asked at my bank and she said alot depends on how many cheques you put though i told her she said it was fine.... hubby had to set one up for his business though and got free banking for first 18 months ....

**mama2three** · 29-03-2010, 04:08 PM

its a very grey area .. technically if the bank knows you are using an account for business then you need a business account .. its because they have different monitoring methods etc and boils down to the money laundering regulations. ( previous existence in banking!)
But what they dont know doesnt hurt them! give the second account any name at all but not business related !

**Fabby** · 29-03-2010, 04:13 PM

mmmmm well i have just explained to them it was for childminding and he said i would have to set it up as a sole trader. I will get the first 18months free and going by what he's just said, i dont think i will get any charges because i wont be putting through enough payments for me be charged. Do you know many childminders who have a 'business account'?

aly · 29-03-2010, 04:43 PM

rubbish.

**singlewiththree** · 29-03-2010, 04:44 PM

I don't I just put it through my normal account with everything else.

**miffy** · 29-03-2010, 04:47 PM

I don't have a business account.

Miffy xx

**manjay** · 29-03-2010, 04:49 PM

Originally Posted by mama2three

its a very grey area .. technically if the bank knows you are using an account for business then you need a business account .. its because they have different monitoring methods etc and boils down to the money laundering regulations. ( previous existence in banking!)
But what they dont know doesnt hurt them! give the second account any name at all but not business related !

I agree (also from a previous life in banking!). I have a second account for my childminding money but it is definitely not a designated business account

~Chelle~ · 29-03-2010, 04:50 PM

I dont have a business account and my bank know I am self employed and a childminder.

Think they are trying to con you into having one.

**Fabby** · 29-03-2010, 04:54 PM

im thinking they are trying to con. To be honest, the man who i spoke to was not the best helpful and i wanted to get him off the pone probably just as much as he wanted me off the phone lol

**Fabby** · 29-03-2010, 04:55 PM

oh another thing he said is that i need a business account for when i am doing my tax returns etc................. mmmmmm

**Jules27** · 29-03-2010, 04:56 PM

I just use my normal bank account. I have a 2nd account which I use for parents that pay with childcare vouchers - just my way really of putting a bit of money aside for xmas lol!!! Don't tell them the 2nd account is for a business hun, if they get difficult take your business else where, I would!!!

**Fabby** · 29-03-2010, 04:58 PM

so is it illegal when running a business not to have a business account?

**manjay** · 29-03-2010, 04:58 PM

Originally Posted by Antpop

im thinking they are trying to con. To be honest, the man who i spoke to was not the best helpful and i wanted to get him off the pone probably just as much as he wanted me off the phone lol

Honestly they are not trying to con you. Technically you are a sole trader and as such should have a business account. In reality we are such small fry (who the bank will never make any money out of) that they tend not to bother insisting. Depends from bank to bank really.

**Tina O** · 29-03-2010, 07:14 PM

Originally Posted by manjay

Honestly they are not trying to con you. Technically you are a sole trader and as such should have a business account. In reality we are such small fry (who the bank will never make any money out of) that they tend not to bother insisting. Depends from bank to bank really.

,,,also with the way banks have been hammered lately with the recession, bank charges and banking bonus scandel they are likely to be a bit miffed at everybody and just trying to do things "by the book" .

I would go into my local branch and set up a 2nd account with no mention of 'business'.......

**birch24** · 29-03-2010, 07:23 PM

Originally Posted by Antpop

oh another thing he said is that i need a business account for when i am doing my tax returns etc................. mmmmmm

No you definately dont need it for tax returns that is rubbish!!

**Chell** · 29-03-2010, 07:50 PM

From what I understand a sole trader (which we all are rather than a company) doesn't need a business account but banks will tell you that you must have a business account.

I have an extra personal account for my website rather than a business account. The only benefit of a business account is that it can have a name where as any cheques I get must be made out to me, not my website name.

I think you get charged for things like banking cheques with a business account although they vary from bank to bank.

**Tatjana** · 29-03-2010, 08:37 PM

Originally Posted by Antpop

so is it illegal when running a business not to have a business account?

Absolute rubbish, as if a law would be invented to aid banks profits!

xx

**The Juggler** · 30-03-2010, 06:28 AM

Originally Posted by mama2three

its a very grey area .. technically if the bank knows you are using an account for business then you need a business account .. its because they have different monitoring methods etc and boils down to the money laundering regulations. ( previous existence in banking!)
But what they dont know doesnt hurt them! give the second account any name at all but not business related !

as long as you make a couple of personal spending withdrawals I dont' see how they can class it as purely business.

if all the money you withdrew was for business spending that's different. I reckon they are trying to con you into having one so they can slap on all the charges.