Opening a business bank account is not a legal requirement, but it is recommended by HMRC.
I also strongly recommend that you open a business bank account if you’re planning to go
What is a Business Bank Account?
A business bank account works much like your personal bank account. Except that the money that goes in and out relate purely to your self employment business.
Why Open a Business Bank Account if it’s Not a Legal R
A lot of self employed business owners choose to open a business bank account, here’s why:
1. You’ll Save Tax
It’s easy to forget about little business expenses you pay for personally. Getting a business bank account with a debit or credit card means you’ll always have a record of every expense you pay for.
It all counts towards bringing down your tax bill.
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2. You’ll Look More Professional
Your business bank account will contain your business name and it’ll help you look a lot more professional and credible in front of your customers.
3. It’ll Make Your Bookkeeping & Taxes Easy
Keeping all your business transactions separate will make working out your taxes much easier.
Most bank accounts not connect automatically with bookkeeping apps like Quickbooks and Freeagent. They pull every transaction over for you and even try to categorise them then estimate your tax in real time.
How to Open a UK Business Bank Account
With over 4 million
But what this does mean is that it can be pretty confusing when it comes to picking one.
Here’s what you need to look out for when choosing a business bank account:
– Hidden fees
Many banks offer introductory offers but then have complicated fee structures once their offer expires or hidden charges on certain transactions.
Whichever you choose, make sure you are clear on what you will pay on each transaction and if there is an ongoing service charge fee.
– Time Consuming Paperwork
Historically opening a Business Bank Accounts always involved waiting for high street banks to get back to you, questioning your every intention and loads of paperwork.
Whoever you approach for your banking check the process for opening the account is before you get started.
Check the bank account you choose integrates with your choice of bookkeeping software.
Being able to link your banking and bookkeeping will save you loads of time, as well as money if you choose to hire an accountant.
– Keep It Simple
When you go
Tide Banking are an online banking option. Its key features that make it worth checking out are:
- Designed with the
self employedin mind;
- Offers an easy sign-up process through their app that takes less than 10 minutes;
- It’s completely free to sign up to;
- Have a simple pricing structure with no hidden costs – just 20p on transfers and £1 on cash withdrawals;
- Offers a free trial of 50 free transfers for you to test the product, just click this link to sign up.
Accountant In Your Inbox
I'll help you to make more profits, pay less tax and stay on the right side of the rules. Enter your email address to connect with me!