Business Bank Accounts

[Jiggles]

Is there any implications in getting one?
Do i need to be VAT registered?
Or should i just get a normal Account?

Callum

[A1DL]

Is there any implications in getting one?
Callum
Not sure that you can as a minor




Do i need to be VAT registered?
Callum
Not unless your turnover exceeds the registration threshold, which I very much doubt it does



Or should i just get a normal Account?
Callum
Probably a better idea given your current circumstances/age


HTH

Tony

[Jiggles]

Ok

thanks

[DMX Will]

Yeah you need to be 18 to hold a bussiness account. I held off until recently (well a few months ago) when I turned 18. It's a shame really because all your probably want it for is to recieve cheques made out to "CB Entertainments" considering your probably spending the money you make at your age straight out etc.

Why not ask a parent to hold the bussiness acount in their name. Have a look at the Cooperative's bussines deals, as some of them don't charge you a monthly/anual rate, and just charge small amounts for debit card/cheques outbound of the account.

Will.

[Jiggles]

I was thinking of getting a Cheque account BUT putting "CB Entertainments" or cant i do that

[wensleydale]

best bet is to use a personal one as business ones all have charges most of the time.

[Steve the DJ]

When you are old enough to open an account I would recommend Abbey Business Banking (http://www.anbusiness.com/) as it is free unless you go over certain limits (i.e pay in no more than £3000 in cash per month, max of 100 cheque deposits per month) which would usually be fine for most single operators.

When you open an account you can do so as "MR Your Name T/A CB Entertainments" which means you can receive payments in either your or the businesses name.

[Jiggles]

When you are old enough to open an account I would recommend Abbey Business Banking (http://www.anbusiness.com/) as it is free unless you go over certain limits (i.e pay in no more than £3000 in cash per month, max of 100 cheque deposits per month) which would usually be fine for most single operators.

When you open an account you can do so as "MR Your Name T/A CB Entertainments" which means you can receive payments in either your or the businesses name.

Good Idea Ill see my grandad (Ex Bookkeeper :rolleyes: ) and see what he has to say

[Spirits High]

When you are old enough to open an account I would recommend Abbey Business Banking as it is free unless you go over certain limits (i.e pay in no more than £3000 in cash per month, max of 100 cheque deposits per month) which would usually be fine for most single operators.

Opened Abbey account the other day very painless.
Applied over the phone then they emailed the filled in form, job done

Highly recommended and no I dont work part time for them!

[DMX Will]

I'm torn between Abbey and The Co-operative bank. I have a wedge of printed off forms for the co-op and its quite scary! I might just go with Abbey however when I ring/they ring, are they going to be overly happy that I only want it for a few quid and not big money!?

[Spirits High]

Will, Abbey were really good they're not really bothered that we dont have massive turnovers.

Having a seperate business account just keeps everything nice and tidy come tax return time!

[theoloyla]

Absolutely right. I must admit I dont use a proper business account. I just have a current and deposit account plus credit and debit cards with a different bank to the one I use for my personal account. If anyone pays me by cheque they make it out in my name. Its only if you are a limited company that you must have a business account and there is little point in being a limited company unless you are risking venture capital and running up credit accounts or extending credit to clients who may possibly default.
When I ran the shop I started with Nat West. They offered free banking for a limited period. When that period ended I opened a treasurers account with Nationwide which was very good. It had no charges, paid interest ut you could only get 5 cheques per month. If I needed more I wrote them from my personal account and withdrew cash to cover it.

[Solitaire Events Ltd]

and there is little point in being a limited company unless you are risking venture capital and running up credit accounts or extending credit to clients who may possibly default.


Not quite true - there are a few other reasons to be limited too.

[DMX Will]

Not quite true - there are a few other reasons to be limited too.

I'm intrested in this, what are the benefits Darren? (I know this is completely off topic....but hey!) Why did you become Limited. I don't think it's the right thing for us right now, but still I'm intrested in these benefits.

Please enlighten me :)

[Solitaire Events Ltd]

I'm intrested in this, what are the benefits Darren? (I know this is completely off topic....but hey!) Why did you become Limited. I don't think it's the right thing for us right now, but still I'm intrested in these benefits.

Please enlighten me :)

There are quite a few, and I'd tell you, but then I'd have to kill you.:D :D

They'd probably be better explained by an accountant rather then me.

I went limited originally, because they changed the rules for corporation tax and it meant saving a lot of money. However, they have now changed the rules back to what they were....:(

[Thames Valley Discos]

must say, abbey are a winner in my opinion, but then again i have the abbey habit!

[DMX Will]

must say, abbey are a winner in my opinion, but then again i have the abbey habit!

Going to ring up and get it sorted tomorrow :)

[Danno13]

I use Alliance and Leicester. They charge £5 a month if you pay in less than 1k a month though, and over 1.5k you get charged per £100 (although not very much). So if your turnover is between 1 - 1.5k a month then its perfect!

[Thames Valley Discos]

http://www.anbusiness.com/

might help you decide

[DMX Will]

So just checking this....as their website isnt that clear (at this time anyway).

- It's basically free
- I can pay in Cheques at my local branch to the account
- I also get a debit/visa electron/other card with the account
- and also a company Cheque book...

[DMX Will]

obviously that is to those who know the Abbey Banking details/have applied....

[A1DL]

Can't fault Barclays, in fact I'd highly recommend them. We pay £100 per quarter all inclusive as an agreed fixed fee, not sure if it's the same now but I remember some years back when we first incorporated they charged something like £15 per month if your turnover was under £100k

[Solitaire Events Ltd]

Can't fault Barclays, in fact I'd highly recommend them. We pay £100 per quarter all inclusive as an agreed fixed fee, not sure if it's the same now but I remember some years back when we first incorporated they charged something like £15 per month if your turnover was under £100k

No, it's changed Tony.

I'm with Barclays on an free automated tariff, which means any internet payments etc are free. I only pay for cash and cheques paid over the counter.

[Thames Valley Discos]

So just checking this....as their website isnt that clear (at this time anyway).

- It's basically free
- I can pay in Cheques at my local branch to the account
- I also get a debit/visa electron/other card with the account
- and also a company Cheque book...

yes
yes
yes
oh and
yes

[Solitaire Events Ltd]

yes
yes
yes
oh and
yes

Yeeeeeeeeeeeeeeeeeeeeeeeees....

[Thames Valley Discos]

where is the flute??

[A1DL]

or for the VERY best in banking, talk to....

[Jiggles]

Pmsl :d:d:d:d:d:d:d:d:d

[Steve the DJ]

So just checking this....as their website isnt that clear (at this time anyway).

- It's basically free
- I can pay in Cheques at my local branch to the account
- I also get a debit/visa electron/other card with the account
- and also a company Cheque book...

Just to clarify a little further...

- It's basically free

Yes, as long as you do not pay in more than £3000 a month in cash, more than 100 cheques or make more than 100 cash/cheque withdrawals in a month. For a sole operator I think it is highly unlikely you will ever exceed these amounts and if you do receive more cash just pay into your normal bank and transfer it by BACS for free. There are charges exactly the same as other banks for bounced payments or going overdrawn.

- I can pay in Cheques at my local branch to the account

Yes but not over the counter. In fact you cannot conduct any business banking over the counter in a branch, you can only pay in, check balances etc. at a cash point. Because the branches do not deal with business customers at all they just take your cheques out of the machine and send it to a processing place in London to be credited. Considering they give you as many free postage envelopes as you can handle to send the cheques you receive straight to this place anyway you would only need a cash point to pay in cash.

- I also get a debit/visa electron/other card with the account

You receive a Visa Debit card to operate the account with and a cash card if you also open the business savings account called Business Reserve which pays higher interest.

- and also a company Cheque book...

Yes.

[DMX Will]

Thanks for that buddy

[Twinspin]

I have my business account with Lloyds TSB

[DMX Will]

Since that post I got myself the Abbey one...can't fault the deal on it.

[rob1963]

I have to say that business bank accounts with the major banks are a bit of a rip off in my opinion.

I pay about £12-£15 a month in charges. I think this is a bit steep, as all I do is pay in a few cheques each month & then withdraw the money from the cash machine when it's cleared.

Unfortunately, cheques cost the banks a fair bit to clear (as it's a manual system) so they pass this charge onto their customers (plus a fair bit extra!). Automated entries such as standing orders, direct debits & online transfers are much cheaper for the banks to process, so therefore they charge their customers less for these payment methods.

[Solitaire Events Ltd]

I have to say that business bank accounts with the major banks are a bit of a rip off in my opinion.



Why use one then?

There's only one of you and you're called Rob James - why not have another account called Rob James 2 or whatever just to keep the money separate?

Your business is called Rob James Entertainment - if you ask for cheques to be paid to Rob James people aren't going to think that's a bit dodgy are they?

[rob1963]

Why use one then?

There's only one of you and you're called Rob James - why not have another account called Rob James 2 or whatever just to keep the money separate?

Your business is called Rob James Entertainment - if you ask for cheques to be paid to Rob James people aren't going to think that's a bit dodgy are they?

Darren,

The main reason I use a business account is because banks know that many sole traders try and avoid business account charges by just feeding the business cheques through their personal account.

It's not hard for banks to work out when business cheques are going through a personal account, and it's obviously something they put a stop to as soon as it's discovered...and I don't need the hassle!

I also think it would look a bit suspect if people booked discos from Rob James Entertainment, but were asked to make cheques payable to me personally...it might look like I was on the fiddle, or maybe trying to do things on the cheap by not having a business bank account.

Either way, I think it just looks more professional to have a proper business account with a major bank.

I know that some building societies offer business accounts which are cheaper, but they often take longer to clear cheques, and also offer far less services than the major banks.

The other advantage of having my business account with the bank I worked for is that I know all their services & systems inside out, which can be handy.

[Solitaire Events Ltd]

.

It's not hard for banks to work out when business cheques are going through a personal account, and it's obviously something they put a stop to as soon as it's discovered...and I don't need the hassle!


If you are getting cheques payable to you, I don't see what the problem is? Is there a banking law that says you have to have a business account?



.I also think it would look a bit suspect if people booked discos from Rob James Entertainment, but were asked to make cheques payable to me personally...it might look like I was on the fiddle, !

BUt you are Rob James of Rob James Entertainment. You are a sole trader, so how can making the cheque payable to Rob James make it look like you were on the fiddle? You are the company. You have no-one else to answer to.


Either way, I think it just looks more professional to have a proper business account with a major bank.

I agree, but if you are a sole trader, trading under your own name, it doesn't matter so much.



The other advantage of having my business account with the bank I worked for is that I know all their services & systems inside out, which can be handy.


Why would that be remotely handy for someone who "pays a few cheques in and takes the cash out again"?

If you want to save the money you are paying on bank charges, there are plenty of ways of doing it, as I'm sure you know.

[rob1963]

Why would that be remotely handy for someone who "pays a few cheques in and takes the cash out again"?

If you want to save the money you are paying on bank charges, there are plenty of ways of doing it, as I'm sure you know.

Darren,

I appreciate your comments.

Knowing the banks systems inside out is handy when problems start arising, and it's also handy to know the details of every service they have available, purely in case of need.

I wasn't saying I want to save money on bank charges, just that I think the charges are a rip off! After all, they are another business expense which helps to reduce my tax bill.

When I opened the account, I got free banking for 18 months anyway.

Finally, I'm very aware of how to save money on or even completely avoid paying bank charges (without my methods even being discovered!), but I prefer to keep everything above board.

:)

[Solitaire Events Ltd]

Darren,

I appreciate your comments.

Knowing the banks systems inside out is handy when problems start arising, and it's also handy to know the details of every service they have available, purely in case of need.

I wasn't saying I want to save money on bank charges, just that I think the charges are a rip off! After all, they are another business expense which helps to reduce my tax bill.

When I opened the account, I got free banking for 18 months anyway.

Finally, I'm very aware of how to save money on or even completely avoid paying bank charges (without my methods even being discovered!), but I prefer to keep everything above board.

:)


The only reason I said anything Rob, was because I don't pay much more than you - around £50 to £60 per quarter, and I'm guessing that I turn over quite a lot more than you. ;)

[rob1963]

The only reason I said anything Rob, was because I don't pay much more than you - around £50 to £60 per quarter, and I'm guessing that I turn over quite a lot more than you. ;)

Compared to little old me on my own, and with all the guys that work for you, I guess you probably do!

:p

[yourdj]

Can't fault Barclays, in fact I'd highly recommend them. We pay £100 per quarter all inclusive as an agreed fixed fee, not sure if it's the same now but I remember some years back when we first incorporated they charged something like £15 per month if your turnover was under £100k

I have two business accounts with Barclays. Although you pay more you get much better service and reliability! at the end of the day if something goes wrong they always sort it out asap. The online banking is great too.

i would not touch abbey, or any other b.society especially abbey as the customer service is crap (current account, maybe not same with business).

[Vectis]

i would not touch abbey, or any other b.society especially abbey as the customer service is crap (current account, maybe not same with business).

Abbey National plc (trading as Abbey) is the United Kingdom's sixth biggest bank, and Europe's second largest mortgage lender, after Halifax (part of the HBOS Group). Abbey is now a subsidiary of Banco Santander Source (http://en.wikipedia.org/wiki/Abbey_bank)

I've used them for business banking for about 2 years and can't fault them. I can pay in up to £3k per month in cheques and conduct unlimited electronic transactions for FREE and they even give you pre-paid envelopes etc..

Only needed to contact customer services once when I screwed up the password on my online banking and it was a pleasant enough experience.

[CRAZY K]

Abbey National plc (trading as Abbey) is the United Kingdom's sixth biggest bank, and Europe's second largest mortgage lender, after Halifax (part of the HBOS Group). Abbey is now a subsidiary of Banco Santander Source (http://en.wikipedia.org/wiki/Abbey_bank)

I've used them for business banking for about 2 years and can't fault them. I can pay in up to £3k per month in cheques and conduct unlimited electronic transactions for FREE and they even give you pre-paid envelopes etc..

Only needed to contact customer services once when I screwed up the password on my online banking and it was a pleasant enough experience.

I spose Martin you have to put up with all the sales pitches, phone calls and e mails and letters from them trying to sell you over priced Insurance:D

CRAZY K

[Vectis]

I spose Martin you have to put up with all the sales pitches, phone calls and e mails and letters from them trying to sell you over priced Insurance:D

CRAZY K

Errr... nope :o

[CRAZY K]

Errr... nope :o

Wont be long now--especially when all the credit crunch starts unravelling---

And they have to make more profits:D :D :D

CRAZY K

[mb3]

I have two business accounts with Barclays. Although you pay more you get much better service and reliability! at the end of the day if something goes wrong they always sort it out asap. The online banking is great too.



I've banked with Barclays for years, and pay next to nothing in bank charges.

I pay my bills by BACS - it's free, rather than paying 70-80p per cheque. Barclays' internet based on-line banking is certainly great... easy to use, and with an internet saver account I can transfer money in and out with a click, and get some interest on my money.

The new "PIN sentry" gadget keeps the on-line banking secure,too.

[DMX Will]

Only needed to contact customer services once when I screwed up the password on my online banking and it was a pleasant enough experience.

I've spoken to Abbey on the phone a few times (when I was setting up my business account) and I had no problems, I think I went straight through to an english customer service rep everytime. The woman I setup my account over the phone with, was also great, she emailed me all the details after the conversation and dealt with me personally until my account was up and running.

No complaints at all.

[DMX Will]

No complaints at all.

Take that back... my one complaint is you cannot use their online banking after 11pm (until some time in the early hours). And I always do my accounting/balances transfers/anything money related late at night (or so it would seem!).

[Solitaire Events Ltd]

Take that back... my one complaint is you cannot use their online banking after 11pm (until some time in the early hours). And I always do my accounting/balances transfers/anything money related late at night (or so it would seem!).

How ridiculous!

[DMX Will]

How ridiculous!
Thank you :)

[Dreamstar Entertainment]

Do you have to either be VAT registered or own your company name to be able to get a business account?

[A1DL]

Do you have to either be VAT registered or own your company name to be able to get a business account?

No and No

[DazzyD]

I don't think it's likely that you need to register for VAT anyway. The current registration threshold is a turnover of £67,000 - equal to £1,288 each week. I think, as a new operator it's unlikely that you're hitting these levels unless you have a really good subs contract with a major P.R. company (and it's unlikely you'll get this without a lot of experience and a good reputation).

My advice is to take things slow. Very few people make a good living from this business early on. It can be a game of luck, sometimes, just being in the right place at the right time.

[Solitaire Events Ltd]

Do you have to either be VAT registered or own your company name to be able to get a business account?

No. :)

[Dreamstar Entertainment]

Dazzy D: im not interested in being vat reg at the min, its seems like alot of hassle and money if you dont need to be. things are going fantastically well but all i was after a business account for was too be able to take cheques made payable to Dreamstar Entertainment not just to me as it seems however much it is written down and i tell clients to make them payable to me, they still make them payable to dreamstar grrrrrrrrrrrrrrrrr

[Solitaire Events Ltd]

Dazzy D: im not interested in being vat reg at the min, its seems like alot of hassle and money if u dnt need to b. things are going fantastically well but all i was after a business account for was too be able to take cheques made payable to Dreamstar Entertainment not just to me as it seems however much it is written down and i tell clients to make them payable to me, they still make them payable to dreamstar grrrrrrrrrrrrrrrrr

Being Vat registered is hassle ;)

All you need to do is open the account as *your name* trading as Dreamstar Entertainment and you can pay cheques in made out to you or the company.

Most banks will give you free banking for a year at least.

[DazzyD]

I understand what you were asking, simon, and why. I think we've all experienced receiving cheques incorrectly made out at some time in the business. I was just thinking that, if you did need to be VAT registered for business banking, then the banks would open a lot less accounts for small-business customers because of the registration threshold. You can register for tax with turnover under the threshold to be able to claim vat back on your purchases but you'd also need to charge vat on your sales as well.

Darren's advice is probably the best way. Open a personal account with "trading as" or "T/A" after the account name.

When I started up, it was after a bad time in my life and my credit record was really low so I had trouble getting a bank account of any sort let alone a business one. I got a basic account from Nationwide and built myself up from there. Still don't use business banking, tho. I've online banking and can set up sub-accounts so I can things separate. Works for me although I do have to settle for cheques in my own name.

[rob1963]

Open a personal account with "trading as" or "T/A" after the account name.

Would it be a personal account if it included the words "trading as"?

My account has my name followed by the words "trading as" and then my business name...but it's not a personal account - it's a business account.

[Solitaire Events Ltd]

He probably meant a business current account Rob.

Now take your banking hat off please.:p

[rob1963]

He probably meant a business current account Rob.

Now take your banking hat off please.:p

Sorry Darren, but it's not easy after 24 years.

You know what they say...

...Once a banker, always a banker!

:Laugh:

[Solitaire Events Ltd]

No quiz again?

[rob1963]

No quiz again?

Correct.

My sunday pub is closed for a couple of months for a refurb...

...so I've been taking the opportunity to have a play with my new D2 this evening instead.

Looking good!

:D

[DazzyD]

Sorry, rob. I misunderstood what darren meant. I thought he meant that it was a personal account with some sort of tag line or something. It seemed a good idea to me! :doh: :Embarassed:

When I tried to get a business account myself, I was turned down due to my "less than satisfactory" credit record. I thought darren was detailing a good alternative! :confused:

[rob1963]

Sorry, rob. I misunderstood what darren meant. I thought he meant that it was a personal account with some sort of tag line or something. It seemed a good idea to me! :doh: :Embarassed:

When I tried to get a business account myself, I was turned down due to my "less than satisfactory" credit record. I thought darren was detailing a good alternative! :confused:

No problem Dazzy!

:)

[Solitaire Events Ltd]

Sorry, rob. I misunderstood what darren meant. I thought he meant that it was a personal account with some sort of tag line or something. It seemed a good idea to me! :doh: :Embarassed:

When I tried to get a business account myself, I was turned down due to my "less than satisfactory" credit record. I thought darren was detailing a good alternative! :confused:

Sorry to mislead. :o

[DazzyD]

I don't think it was you, Darren. Reading your original post back, it makes sense that if you had business name as the account holder then that would make it a business account. I'm only 5'9" tall so things go right over my head sometimes!