Self employed banking.

[philmh]

Me and my brother are both self employed, me almost 7 years, him 18 years. On friday we were both told by our bank manager it is now a legal requirement to have a business account (which will cost). Up to now we've been using our personal current accounts all the time we've been self employed, and there's never been a problem. But now it seems, they're 'clamping down' on this sort of thing. Btw, it's Yorkshire bank, and if anyone knows any banks where this isn't a requirement, i'd be glad to know.

[ringram]

I doubt its actually a requirement if you do your books properly. They just want the higher fee's.
Just more your personal account to another bank IMO.

[fourfoldroot]

I maybe totally wrong,but I thought it was only a legal requirement if you ran a limited company.

[heebeegeetee]

Santander do free business banking, and if you join the FSB you can get free banking from the Co-op.

[ellroy]

I'd just open another personal account elsewhere, run the business stuff through that until they notice, rince and repeat.

[Eric Mc]

It is not and never has been a LEGAL requirement for someone who is trading as a sole trader to open and use a dedicated sole trader bank account. There is no indication that such a legal requirement will ever be needed.

The bank is talking rot.

[ringram]

heebeegeetee said:

Santander do free business banking, and if you join the FSB you can get free banking from the Co-op.

<FAIL>

Santander are not worth even considering for a split second unless you have no interest in customer service, competency or anything of that ilk. I have closed 5 accounts there in the past year, never to open them again.

</FAIL>

[philmh]

Thanks for all the replies. Spoke to Halifax today and they agreed Yorkshire bank are just trying to rip us off, so changing banks on friday.

[Kudos]

ringram said:

<FAIL>

Santander are not worth even considering for a split second unless you have no interest in customer service, competency or anything of that ilk. I have closed 5 accounts there in the past year, never to open them again.

</FAIL>

I've used their free banking for several years and have had no issue

[craigb84]

My accountant told me last week that it isn't a legal requirement however, if I was to ever be investigated and I'd used my personal account even just once for the business then they can open up my personal history as well as the business history.

[Eric Mc]

craigb84 said:

My accountant told me last week that it isn't a legal requirement however, if I was to ever be investigated and I'd used my personal account even just once for the business then they can open up my personal history as well as the business history.

Not quite. They can always ask to see personal bank accounts if they think that it will help them with their enquiries. Obviously, if you are using a personal account for the business transactions, they will see the personal transactions automatically.

[sumo69]

It is good practice and probably easier for all concerned to have a seperate account for the business but it is NOT a legal requirement.

HSBC do a free business banking product - I use it!

David