UK small business - business bank account or?

Question

This may sound dumb but I have started a small business and need some advice on the bank account. If I set up a business bank account doe sthat mean that any cheques payable to my personal name can not be deposited in it because the business account would be in the business name? Dumb question I know but I'm new to this. I am registered as self employed and the business is registered with HMRC - not registered as a company at companies house. I am not registered for VAT either as my turnover is below the threshhold (hope that helps). Should I just use my personal bank account or would it better to open a business account (sorry that's 2 questions lol!) thanks!

Answer 1

Not a dumb question at all.
Your bank will be able to advise you about cheques payable in your name but a lot depends what you call your business and how you ask your customers to complete their cheques.

If, for instance, you call your business Jean Jones, your cheques could be made payable to J. Jones or Jean Jones.

If, however you called your business Flowerpower, cheques to Flowerpower would immediately be banked in your business account name of Flowerpower but you bank would have to agree to anything else,
Remember that the Revenue will be interested in any payments you receive so keep your nose clean and avoid the retribution that might come later.
Good luck in your business, I've just retired after 30+ years self employed.

Answer 2

I'm afraid you are going to have to hold fire for a little while whilst you take certain steps to make opening an account possible. The credit issue need not necessarily be a problem but any bank opening either a personal or business account are going to need to see Proof of ID (Passport or Driving Licence) Proof of Residency (At least one and usually 2 utility bills addressed to you at the place you are residing which are not more than 3 months old) and last but not least proof that you are on the electoral roll at the place you are living. It is this last one which cannot happen overnight. As an EU citizen resident in the UK you are entitle to register to vote. Contact the local council in the area you are living and ask them to send out an electoral registration form. Return this with a covering letter asking that they add you to the electoral roll as soon as possible. Depending on the council this will probably take about a month judging by my experience when I moved house two years ago. Hope this helps. Brendan

Answer 3

You need to open a business account, you want to keep that seperate from yourself eventhough its your business. If you get any checks, you want them to be made out to your company name, and then when you cut yourself a paycheck, you make it to yourself, and put in your personal account.