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

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.

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  .

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