A business bank account is similar to your personal bank account, however it is designed for business transactions by self-employed or sole traders, partnerships, limited, LTD companies, clubs and societies; including charities. There's nothing really special about a traditional high street business bank account. At it's basic level it's just like your personal bank account yet it's one you open solely for your business earning and expense after your promotion offer expires; often 12 months. You will then be charged monthly or annual charges regardless if you use your business bank account or not.
Are business bank account a legal requirement ?
Yes, you need a business account if you want to set up a limited company.
If you have already set your business up as a limited company in the UK (ie, you've registered it at Companies House). under those circumstance, your business is legally separate from you, therefore you shouldn't be using a personal account for it's expenses.
You don't break your bank's terms and conditions. The reams of small print jargon that comes with your personal bank account will usually say that you're not allowed to use it as a business account. You're unlikely to precipitate this if you're, say, a freelance photographer getting earnings transferred into the account. But, if for example you own a food trailer and make a lot of cash transactions, then your bank will likely ask you to open one of its business accounts, or close your personal accounts.
Drawing this out further, it is very beneficial if HMRC ever investigate your business finances. If they do, it's all there, and separate, and won't necessitate them looking into your personal finances too.
What are the benefits of business bank accounts
Keeps business income and expenditure separate from personal finances
Can help put a stop to personal legal liability
Can help build a credit rating for your business - extremely beneficial if you need a business loan
What is FSCS protected business bank account in the United Kingdom?
At Oaktree Business Support Partners
We advice all customers to check to see if their business bank account is authorised and regulated by the Financial Conduct Authority (FCA) and protected by the Financial Services Compensation Scheme (FSCS), which protects the first £85,000 of your business savings. God forbid if your business bank account went bust in return you would have lost your hard earned money. Unfortunately this isn’t always the case with all banks, so do your research first and ensure the bank you want to join has the necessary levels of regulation and consumer protection.
A few Advantages of keeping business and personal finances separate
As we mentioned earlier, business accounts work in a very similar way to personal accounts – you'll be able to set up payments, receive payment and make debit card transactions.
Setting up a separate account has a lot of positives going for it, especially with Tide business bank account before partnering with Tide business bank account uk. We have done extensive amounts of research so you don’t have to. We considered and researched too many factors to list however here are some of our favourite features and the reason why we recommend Tide business bank account for small business and sole traders:
(FCA) and protected by the Financial Services Compensation Scheme (FSCS), which protects the first £85,000 of your business savings.
No credit checks to open online current business bank account in the UK
No more long waiting for bank appointments- Good bye branch visits!
Quick and easy to set up no messy long complicated forms to fill in
Can have your sort code and account number in under 5 minutes
You save on admin and time
Plus £100 Cashback reward so you can see what all the fuss is about.
Don't forget to use & Share the exclusive promo code with family, friends: OAKTREEBSP
Make sure to credit your new Tide account with a minimum £1 within 3 months of opening the account to activate your £100 Cashback reward. Or call Oaktree business support partners and we will transfer the £1
Keeping your business income and expenses separate will help when you come to do your tax return for HMRC. Plus your accountant would love you especially if you had a Tide business bank account. The info and numbers you need are all in one account, in the palm of your hands, rather than you sifting through your personal account trying to work out whether that posh restaurant meal was a business meeting and can be expensed, or you and your friends heading for lunch.
Connect in seconds with a range of popular accounting software, including Xero, Sage, Kashflow, FreeAgent, QuickBooks, ClearBooks and Crunch.
Integrate with your accounting software
All your finance admin in one place
Send automatic payments to your software
Be year-end ready for your accountant
Get paid on time with a free built in voicing features.
No need for separate software. Bill your customers directly from the Tide app. Upgrade to Invoice Assistant for automatic chasing and matching to ensure you always get paid on time.
You build a credit rating for your business.
If you want or end up needing to apply for a business loan or credit card further down the line, then it's better to build up a history for your business now, and you can do this by managing a business account well.
Trusted by 400,000+ UK businesses. Plus you don’t have to do a bank switch to qualify for £100 Cashback thats how convinced we are about you loving tide business bank account .Therefore take advantage no harm trying alongside you existing business banking. Click here get started
As of April 2022, there are around 4.21 million self-employed sole traders freelancing, contracting or part of the gig economy, workers in the United Kingdom.
that could be our main job or a side hustle. You can use your personal bank account. However there will be times when you need to use a business account alongside a personal one so it's much easier to separate your finances saving you valuable time and money.
Did you know? UK freelancers, self- employed, sole traders, contractors, restaurants/ takeaways, market traders, taxi drivers etc. spend at least 15 days annually, sorting business expenses from their personal account.
If you’re self-employed, a sole trader or freelancer, opening a business bank account is an easy way to keep your business dealings separate from your own personal finances.
Having a business bank account also lets you apply for a business loans & credits and usually make it easier to apply for business loans.
Do you need a business bank account as a sole trader?
As a sole trader, or self-employed person, you’re not legally obliged to have a business bank account. Your business and personal income are treated in the same way by the tax office.
If you are in partnerships, with two or more sole traders, and currently operate through a personal account, at Oaktree we strongly advice sole traders and partnerships to keep their business finances separate by opening a business bank account.
Advantages can include being able to deposit money under your trading name making you look more professional and having access to more detailed transactional data and we encourage you take advantage of our partnership with tide business bank account uk. claim your £100 Cashback, with no monthly or annual fees. Click hear to get started
Do you need a business bank account as a sole trader?
You don't NEED a business bank account if... You're a sole trader or freelancer, or contracting (but not through a limited company), eg, hairdresser, research interviewer, journalist, TV producer, gardener, designer, developer. You're doing work, like Uber eats, TaskRabbit etc
As a sole trader, or self-employed person, you’re not legally obliged to have a business bank account. Your business and personal income are treated in the same way by the tax office, so you can use your personal bank account for business transactions. Partnerships, which are effectively two or more sole traders, may also choose to operate through a joint personal account.
However, many sole traders and partnerships prefer to keep their business finances separate by opening a business bank account. Advantages can include being able to deposit money under your trading name and having access to more detailed transactional data.
But a business account can range from that very simple money-in, money-out account to an account that helps you issue invoices, run payroll (if you employ others) and help with your accounting and tax return. Whatever you need it to do, there'll be an account out there to help.
You don't NEED a business bank account if... You're a sole trader or freelancer, or contracting (but not through a limited company), eg, hairdresser, Taxi driver, interviewer, journalist, TV producer, gardener, developer. You're doing gig work, like Uber, TaskRabbit or Deliveroo.
You're not required to open a business account in these cases, as your business or your self-employment isn't legally separate from you. As a freelancer, sole trader or gig worker, you and your business are one and the same in the eyes of the taxman – and the law!
Let’s say you're in the "I don't need one" group, you may want to open one anyway, as you will find it's easier to have one than to try and juggle your business's earning and expenditure with your own, especially if your self-employment income is the bread and butter of your total income.
As a rule of thumb, if you're offsetting business expenses (eg, phone calls , fuel expenses, accommodation or tools ) against your income, then you really should be looking for a separate business account.
What do I need to open a business bank account?
With a traditional high street bank, to open a business bank account first off all you would need a appointment to visit your local branch, which can take up-to a month . Most high street business bank accounts carry out a credit check. You will have to provide different documents depending on the type of company you’re running. But you’ll always have to provide your business details, as well as personal details for anybody included in the application. You’ll be asked for...
Proof of IDA -
Valid passport or driving licence for all company directors
Business contact details Including registered business name and number and date of incorporation
Proof of address: You’ll have to provide your address to prove you are a UK resident
Registered business address If different from your home address. More common with limited companies
How long does it take to open a business bank account?
Opening a traditional high street business bank account it could take up-to 1-4 weeks.
with a Tide business bank Account you could have your sort code and account number in 5 five minutes and your business bank card delivered within a week..
C Ready to be your own boss? or simply want to reserve your company name. or even currently self-employed and now want to trade as registered company. Congratulations Click here. claim £100 Cashback award from Oaktree business and tide business bank account. All in one streamlined process and for FREE!
Yes, it’s really free! We pay the £12 incorporation fee on your behalf.
Apply within minutes, in one streamlined process.
Get your certificate of incorporation within hours. If it’s a Friday night, it can take until Monday
No credit checks to open a business bank account with Tide
No monthly or annual fees. Register a Limited company and open a business bank account. All in one streamlined process and for FREE!
Whether you're just starting up or looking for support, Oaktree business support can support you every step of the way. from free companies house formation to our other wide range of products and services making it a one stop shop. Plus years of experience, our focus is on making business simple - for everyone.
Free Business Telephone Number| Free Business Bank Account| Free Companies House Formation| Claim £100 cashback +Free POS* See How We Can Make Your Business More Profitable.
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