Best business bank accounts for sole trader?

[KateB83]

Hi everyone,

I have been set up as a sole trader for about a year and a half now but I've just been using my own bank account. I'm starting to earn more (my income is still very low at this stage though) and need to split off business/personal stuff a bit more and have a clear divide, so I am thinking it's a good idea to set up a business bank account. I struggle with the admin side of my business, and I probably should have got more of a handle on this a long time ago!

What are the best bank accounts to take a look at for sole traders? Ideally I want something that will allow me to have a separate sub account to siphon off 30% to cover tax.

Thanks all

 

[MyAccountantOnline]

I think they are all much the same from what my clients tell me.

It depends very much on what you need - do you need a local branch etc.?

Personally I use Barclays, cant remember the last time I spoke to anyone from Barclays or visited a branch though. The online service is very good and you can easily set up a savings account to transfer funds for tax.

 

[savagek]

I use Barclays and have to say the services on offer are perfect for my needs.

Online and app are great for doing most banking. It's free for 18 months - however some of their paid for accounts offer invoicing, accounting and tax returns.

 

[Ashley_Price]

There are accounts out there for small businesses (I think Santander still offer one) which is free as long as you stay within certain limits. Most banks offer a business savings account (we have one) which you can put money aside for tax and so forth.

But really it all comes down to what you need from the account (online banking, telephone banking, be able to go to a branch).

 

[White Man Van]

I don't need anything out of the ordinary, a few months ago switched to Santander 1-2-3 just so I could get decent interest on a current account. get cashback on various regular bills too. seemed a bit of a no-brainer and so far it works well. they pay 3% up to 20k. You have to go into a branch to set it up though, can't just do it online. took about 45 mins I think.

 

[Moneyman]

visit all the local banks and see if one of them has a business centre. It can be a royal pain in the butt if the local staff know nothing about say credit card machines etc and you need the form.

 

[webgeek]

I found Cater Allen (a Santander private bank) to have the worst service I've ever encountered from a financial institution, which is a strong statement, considering I've endured 6 months trying to initially get an account at RBoS (personal account many years ago). Pity I hadn't seen that great expose about Santander before getting an account - it really drove home how many terrible service experiences they've caused.

Halifax/Bank of Scotland have had their ups and downs. They're slow as molasses on a cold winter day and would rather talk over someone than listen to them, but could be worse.

I'll be looking at Nationwide or HSBC should the need arise.

 

[ShamusRichard]

The banks are entitled to put conditions on their accounts and it's common to see "not for business use" conditions.

There is a lot more competition for personal accounts than business accounts and they are entitled to say that if you are a business, you don't qualify for the better offers that are available to personal customers.

 

[tony84]

I used to work for RBS, i have had my accounts with them ever since.
I went in to open up a business account. They gave me an interest free overdraft of £500 for the first year not that i need it but its nice to have if you do.

Ive called into the branch a couple of times as i dont do internet banking, i know the staff and theyre all fine. Only once in 8 years have i had an issue on a personal account.

 

[HSCA]

If you are in London or surrounding counties & have simple business banking needs, for a relatively hassle free & refreshing experience compared to some of the big names try Metro Bank.