Current Account For Sole Trader - Acceptible?

[richard256]

Hi.As a sole trader, is it acceptable to conduct one's business (buying and selling, etc) using a regular current account bank account, soley for business use? Thanks. Rich

 

[STDFR33]

Yes, though it will probably be against the banks T&C's and they could close the account with little notice.

 

[Aileen B]

Hi Rich, *someone I know* has used a standard bank account for this purpose BUT the transactions are only withdrawals and debits from PayPal and the odd direct card payment to a supplier. No large transactions that would potentially set off a red flag.

It isn't illegal for a sole trader to use a personal account as a business account but it is heavily frowned upon by banks as I gather.

There are certainly benefits to having a proper business account including being able to open a merchant account (I think).

 

[richard256]

Hi. As a "testing the waters" endeavor, not even a project to obtain a living wage, I have in mind to import some few products from China. Ordering no more than say £100 of goods at a time. And selling these through an Ebay shop. Small stuff. And wondered whether, for now, a regular current account would be acceptable.

 

[Mr D]

Hi. As a "testing the waters" endeavor, not even a project to obtain a living wage, I have in mind to import some few products from China. Ordering no more than say £100 of goods at a time. And selling these through an Ebay shop. Small stuff. And wondered whether, for now, a regular current account would be acceptable.

Can probably get away with it for a while.
If the bank looks hard at the account you may well lose it but that could be years in the future. If ever.
Having a separate account that doesn't carry your personal income and expenditure is a good idea anyway.

 

[Gecko001]

It will probably be against the bank's T & C's as has been said but if you do not have very many business transactions going in and out of the account, the bank probably will let you do it.

I have been using a personal account for the last 20 years, but my business transactions are limited to lodging cheques every month or two and a few BACS transactions every year. If I were lodging coins and cash on a regular basis or having dozens of business transactions per month, the bank would probably want me to open another account.