Business or current account help!

[LydiaP]

Good Afternoon,

Could someone please clarify something for me? I am looking to open a separate current account for my part time business, that I work around my regular full time job, and I am being told by different banks that I need to set up a business account, and that I cannot use a personal current account. Is this correct, as it is only part time at the moment, and I thought as a sole trader, I can use a current account?

Would I not mention that it is for business use then, and just open a separate current account? It is only going to be used for purchasing products and putting in the money from clients, so I don't understand why I cannot use a current account. Has anyone else experienced this problem, as I am getting really confused, and I would like to keep my business money away from my own account?

I am only very new to this, so I don't want to be told a lie about having to have a business account, unless I absolutely have to?

If other people use a separate current account, and this is perfectly fine, I don't see why the banks are trying to sell me a business account?

Can someone please help, as I am getting slightly stressed about this?

Thank you!!

 

[Jake...]

If you are a Limited Company then you need a Business bank account,

If you are a Sole Trader and want another account for work finances and expenses there is no legal requirement to have a business bank account, as long as your tax returns etc are all completed.

I have 2 current accounts with one bank, just apply for another online and ignore them lol.

 

[Jake...]

They want you to have a biz account as they can make more money in fees, and offer business lending, there are also often monthly charges

If this is not something you need a second Personal account is fine.

 

[LydiaP]

Thank you for replying! That's what I was thinking. I think they are trying to scare me into getting a business account so I have to pay the monthly charge

I will just set up a personal account separately, and use that. It is only part time at the moment, and I am registered as a sole trader, and not a ltd company.
Thank you again for replying! You've put my mind at ease!