Business plan?! Bank accounts and registering please help!

[Alexa Shelley]

Hi lovely ladies and gents. I have a question regarding business plans, apparently I need to do one of these in order to open a business bank account and I am in a bit of a pickle.I have read the advice on here which has been most helpful about registering as a business for tax purposes and have decided to go with registering as a therapist, however it seems that I need to write a business plan in order to get a bank account. How did you go about this? Particularly if your business is registered as something more broad than coming out as an escort. Or do others use a personal bank account other than your main one and is this acceptable to customs and revenue? Any advice on this matter would be very much appreciated as I hope to register as soon as possible

Thanks in advance

Axxx

[casey_kisses]

Hey Alexa,

I set up a business bank account today- also saying I was a therapist. I did not need a business plan, just a couple of pieces of identification (passport, bank statement). They did ask me a few questions about my business etc, but you can be relatively vague and I had no problem whatsoever. A lot of this was standard information such as how much my yearly income would be etc. I also set up a personal account as well, so I am not yet sure which one I will use as my main account. I set up both because I wanted the option. You can just use a personal account, it makes no difference to customs and revenue, and this would be quicker and easier. Your bank advisor will be able to advise you on which account is best for you, so I would speak to them about it.

If you go ahead with opening a business account then I would suggest changing banks, as not all banks have the same policy regarding the information needed to open a business account, so maybe search for one that is more accessible.

Good Luck x

[amy]

Don't open a business bank account - the fees are horrific. Even if you are so disorganised that you think it would be better to have a separate 'work' account (say, to pay a wage into your personal account), just open another normal current account - you are a sole trader and there are no benefits that I can think of at all (and I have to fend off the sales pitch at the bank every time I show my face)  .

HMRC are not interested in your banking arrangements; they just want to know how much you've earned and how much it's cost you to do so so they can work out your tax liability. You can get the form for registering online and Therapist will do fine if you don't want to put 'escort' - it is a meaningless term and covers just about everything you can think of in terms of personal services.

I can show you how I do my record keeping if you like too  .

[*amber*]

I use a normal current account too as there really is little point of having one for this type of work. If you can demostate what goes in and what goes out of your business then thats all you really need to do.

[Miss Bond ;)]

Amy is totally right, business accounts suck.

Although I do have a 'premier' account, it's only to avoid the funny looks from cashiers when I deposit wads of cash. I have a lady to myself who does it  everytime. I gave her some shitty excuse. It also makes financial sense as it gives me free this and that and most importantly some good insurance.

From what I remember Amy saying before, she simply deposits everything in her account, and pays for every expense by card so bank statements bascially help you fill in your tax return. This has really helped me so thank you Amy  
From following Amy's advice, I realised I didn't even really need an accountant, apart from the fact that I am v young and need them to help certify me to get a mortgage. If you do most of the accounting yourself, you only have to pay them an hourly fee for say an hour or something every now and then, just so they can double check things.

Good Luck xxx

Ps business plans are super easy and can be a useful motivator (sometimes)- most templates are available on the net along with advice.

[amy]

I've got an accountant, but mainly because my maths is so horrendously bad that I couldn't score a darts game if you held a gun to my head  . Plus it does help with things like buying property, borrowing money and whatnot - all self employed people need help when it comes to financial credibility, I would think, not just us in particular.

Its never entered my head to feel uncomfortable at the bank - I deposit cash regularly and the ladies are used to me now; a couple are very helpful and even show me if they've had forged notes in which are worth keeping an eye out for. My 'finance manager' or whatever at the branch is great and always wanting stories about what I've been up to and has helped me a lot with organising my savings, pension and so on; I've been asked about a large cash deposit once (ike Anika mentioned on another thread), but I understand that they have to do this because of money laundering regulations and not because they are singling you out.

With business accounts you are charged for virtually every transaction you make including Direct Debits, debit card payments and paying in cash, plus the usual monthly admin fees. I do agree that a business plan can help you to focus and I might even have a go myself  .

[Harlow]

Hi

I opened one of those basic accounts that you can only add or with draw cash into. At first I did this because my regular account is blocked & is undergoing a payment plan thing. But now I think it will work well as my work account, it will keep it all simple as it's cash in, cash out.

H xx

[Alexa Shelley]

Wow - thanks so much ladies for your speedy responses, its superb to know that I can count on you for some help, I may be able to sleep now lol! Faith, yes I probably should look into alternative providers, I guess I was doing the old fashioned thing of 'devil you know' lol!

Amy and Amber, thanks for clearing things up re hmrc and a personal account for business. This seems to be the most sensible option for me as I am starting out and don't want to go giving my hard earned cash to greedy bankers via bank charges! I am however prepared to TAKE cash from said bankers should they wish to book me...

Also I found the advice on accountants very useful, I was hoping to attempt to do most of my own book keeping, but as Amy rightly pointed out, I may need some one to vouch for my financial stability when I come to require a mortgage - I'd not thought about that and I do so hope to be in the situation to buy a property in the future.

Harlow I love simplicity cash in cash out - I like that and thanks. Amy I'd love to see how you keep your records when you have time that would be a massive help.

Thanks again to everyone who replied to my post, I am feeling much happier now and have focused upon what I need to do.

This site rocks!!!

Axxx

[Anika Mae]

My mum has a business account and has to pay them 10% of everything that comes in. I can't see how that could possibly be worth it, but she switched to that from the Santander account even though it was free. Part of it was that she has to pay in foreign cheques which was a huge pain, but she said that everything took forever, even receiving wire transfers. It's really a minimal service.

Using a current account is perfectly reasonable for a sole trader.