Bank Accounts...

[Longbow]

Hiya peeps,

My wife is registering as a CM at the moment, both DBS's have been done and we are well on our way. I'm planning on leaving my job as an Engineer once she's up and running to join her, first as her assistant and then as a CM myself.

My question, well one of many, but the one that's in my head at the moment is...

Bank accounts - We both have one. Separate accounts. In fact we have a few each (all empty unfortunately), are we okay to use one, any one for the business? Do we not need a business account? It's our first attempt at working for ourselves so it's all new...

Also, do you all use an accountant or do things yourself?

Chris

[moggy]

You do not need a business account. I use my personal joint account (joint with husband).
I use Pacey Accounts book for my accounts- very simple and shows you how to work it all out ready to submit final figures to tax office.

Some people use a business account, but it can incur costs.
Some LA may request a business account for claiming Free Entitlement but that is more aimed at nurseries so can be argued IMO.

My Pacey accounts book + receipts + invoices shows all my money in and money out so no need to keep money in a separate account.

[Kiddleywinks]

I have 3 personal accounts

One is my bills account - so all my household DD's/STO's etc
One is my savings account - parents deposits are held in there, and money towards my tax bill (boo! lol) This is obviously the healthiest looking account of all

The third is the one all parents pay into, and is my 'day to day' account.
From this account I pay x amount into my bills account, so my bills are covered, and x amount into my savings account so the tax bill is covered (If no/little tax to pay, then I either spend the surplus on things I want/need - holiday, big household purchases but not minding stuff), and then whatever is left is what we live off food wise and business related expenditure.
I don't generally pay any cash received into the bank, it gets used to do food shopping, however, all income is logged in my accounts book (well, spreadsheet) as is all business related costs and purchases

At present, even though the bank are aware I am self employed, they haven't demanded I use a business account as yet, so until they do I shall carry on using my normal current accounts.
Banking 'law' says I should have a business account - if you read the T&C's it does state so in there, so if they do get their knickers in a twist, they can pull my account. I'll just switch to another bank, so no skin of my nose

[KateA]

Hi I dont have a business account just opened another personal account that the parents pay into. This way I keep my money and the business money separate. I keep a spread sheet on all my in comings and outgoings and yes I do use an accountant but he is my father in law so does not cost me anything x

[Longbow]

Thank you ladies, really appreciate your help x