Business or current account?

[Shardlake]

Hello,
I’ve just set up my own business (not my main job) and am now looking into the banking side of things. Can someone tell me – if I get paid by cheque made out to my name, can I just open a normal current account and pay it in that way or am I legally required to have a business account? I am not VAT registered and wont be taking over £500 a month (more of getting paid for my hobby really).
Many thanks

[AboveParr]

Welcome to the forum!

You can get a basic business account very easily (and free with certain banks)

It's best to keep everything separate and will make your life a lot easier in the long run...

[Shardlake]

Thank you for the reply. I have an account with a certain bank that I use for every day use and I was thinking of opening a current account say with Barclays. Like you said to keep everything separate. Is that legal?

[AboveParr]

You can open an account with whoever will let you - but IMO you need to tell them it's business one.

Barclays do a period of free banking for business accounts and are actually pretty good!

[Cathpros4]

If you're doing a business get a business account.

-Alliance & Leicester Commercial Bank gives 2 years free Banking. There's no minimum funding or balance requirement.
-Barclays, 12 months
-HSBC,18 months
-Lloyds TSB, 18 months.
[Source: Business Moneyfacts, June 2009 Issue]

[Shardlake]

Just spoken to someone at HSBC who explained everything. I now have a business account with them. Thanks for your help.

[Scootek]

Get a business account. Keep things simple and seperate. People can pay you on your business name. Looks professional. Most banks offer around 2 year free business banking.

[softhands]

I applied for a business bank account with HSBC and they refused to open it saying " we can not offer you bank account due to the nature of business of you have ".. I was like .

I only sell computers....

[Scootek]

I applied for a business bank account with HSBC and they refused to open it saying " we can not offer you bank account due to the nature of business of you have ".. I was like .

I only sell computers....

That's quite a surprise. I still have a HSBC Business Account for Computer Sales business!!! And it was all online sales mainly to mainland Europe.

[Scootek]

Just to add, before you go and try another bank, can I suggest that you get your credit report checked (if you haven't already).

Also, I have had three business accounts simultaneously for three business; with HSBC, Alliance & Leicester, and Natwest. I have found Natwest to be the best. I am not talking about the package. I look forward a personal service in most of my dealings.