How can a 16-year-old get a business bank account?

[OddBall121104]

Hi all,

I've been running a digital marketing company for the past three years using a combination of Paypal, Payoneer and one of my personal bank accounts (my "business" account if you will, whilst others have my personal money).
My business has boomed over lockdown, even though many haven't, so I'm looking at incorporating and getting a proper business account for my business as I'm soon going to start employing people (and as such, can't really pay them from my personal account). Does anyone know of any banks that offer business bank accounts to under 18 year olds? I know I'm not going to be able to get things like an overdraft or a loan (quite frankly, I don't really need one at the minute) but I just need a bank account that's going to help me. Any thoughts?

 

[WaveJumper]

Welcome to the UKBF and well done on you're success so far. I think unless someone else on here know's something I do not, this could prove a bit difficult as people aged under 18 are legally considered to be a minor and, and unfortunately, this means that you can't open a business bank account.

One alternative is, and maybe not ideal but to have a family member on board. Hopefully someone can come up with a more positive suggestion but best of luck with your venture

 

[Paul Kelly ICHYB]

If you open a ltd company, then it might be a bit easier, as the account is for the company not you (and at 16, I believe, you can be a director).

Also, when speaking to high street banks, ask for a basic or foundation account, which will only give you a debit card.

A quick check shows that Barclays will open up a business account for a 16 year old - maybe you need to do a quick Google!

 

[OddBall121104]

A quick check shows that Barclays will open up a business account for a 16 year old - maybe you need to do a quick Google!

Hi Paul, thanks for the reply, the forum that discusses that is over ten years old. Obviously banking regulations have changed considerably since then, and I can't find anything pre-2013 to see if they still do it. If you've found something different that's more modern, please share it!

Thanks again!

 

[Paul Kelly ICHYB]

the forum that discusses that is over ten years old

Yes, but the Barclays website I got that from appears to be pretty up to date!

 

[WaveJumper]

Worth having a look at this link having checked a few of the banks on there re their T&C's they have no mention of age restrictions .... plus helps as all your links to the majors and a few I have never heard of are all in one place. best of luck

https://www.money.co.uk/current-acc...-bQVJypNLpYN1AGuRLOuN8GsA0KQfqBQaAnNLEALw_wcB

 

[OddBall121104]

Yes, but the Barclays website I got that from appears to be pretty up to date!

Hi Paul,
That's great news! Would you mind sharing that particular link so I can see it for myself? Thanks!!

 

[UK Contractor Accountant]

Mentions it Barclays latest terns & conditions - from Barclays website

Who can use the app?

You must be aged 16 or over and have a Barclays current account, Barclaycard or savings account. If you're aged 11 to 15 years, you can use another version of the app

• It's only available for customers of
• Barclays Bank UK PLC
• Barclays Bank PLC in the United Kingdom, Jersey, Guernsey and the Isle of Man
• Barclays Investment Solutions Limited

If we need to, we can refuse to register you for the app and limit how you use it.

The devices it works on

At the moment, the app works on Android 5.0 or above and iOS 11 or later (we update these regularly). There are different features depending on your phone or tablet, operating system or version of the app you have.

What does it cost?

• If you're a personal customer, we won't charge you for using the app, although charges may apply on some international payments
• If you're a business customer, we may charge you for certain transactions – depending on the tariff you've chosen. All our tariff information is available at http://www.barclays.co.uk/ImportantInformation/Ratesandcharges/P1242559944567
• Your internet or network service provider may also charge you for using data on your smartphone or tablet

 

[OddBall121104]

Other than Barclays, does anyone know of any banks that offer business accounts to under 18s?

 

[japancool]

Hi Paul, thanks for the reply, the forum that discusses that is over ten years old. Obviously banking regulations have changed considerably since then, and I can't find anything pre-2013 to see if they still do it. If you've found something different that's more modern, please share it!

Thanks again!

Why not pick up the phone and ask them?

 

[Paul Kelly ICHYB]

Other than Barclays, does anyone know of any banks that offer business accounts to under 18s?

And googling isn't helping? I identified Barclays in a few seconds!

 

[Deleted member 345558]

@OddBall121104 did you get this resolved?

My 16yo son is an athlete and therefore director and PSC of the business, but despite both parents also being directors we have just been told that our business account with Mettle will be closed.

Only I have control/access to the account and I'm also a PSC, but according to their T&C's apparently no one under 18 can be listed as a director or PSC at Companies House.

Am I going to have the same issue everywhere?!

 

[OddBall121104]

@NReilly Yeah I did sort this. I looked at Mettle and that's what they told us (even though I know that's not true from my own experience. We ended up going to Barclays as Paul helpfully mentioned above.

Their staff were quite rude - the woman who opened the account acted as though she couldn't be bothered and insulted my mother (who was the signatory on the account) because "[she] wasn't a good parent for letting her kid [me] do this and not make [me] focus on schoolwork" - and made us jump through a million and one hoops over the course of a good three weeks (after having waited six weeks to get the appointment to open the bank account in the first place!) but I got the account in the end.

Thanks to when my birthday is, my one year of free banking ends only a few months before my 18th birthday, so I'll probably pay those few months, turn 18, remove my mother as PSC at Companies House and Barclays before closing the account and going with another bank due to how they treated us.

I'm sure this is just one bad experience with one incompetent banker, but I'll admit that without them I would be in a much worse place, so I am grateful, even if they could've gone about it better.

Would I recommend Barclays? Yes and no. You look to be in a similar position to what I was a few months ago, so I'd say yes as a delay, a bit of rudeness and messing around is preferable to nothing. But if you were over 18, I'd stay away from Barclays.

Hope this helps (and hasn't scared you off - it's just my honest account of my experiences)!

 

[Deleted member 345558]

@NReilly Yeah I did sort this. I looked at Mettle and that's what they told us (even though I know that's not true from my own experience. We ended up going to Barclays as Paul helpfully mentioned above.

Their staff were quite rude - the woman who opened the account acted as though she couldn't be bothered and insulted my mother (who was the signatory on the account) because "[she] wasn't a good parent for letting her kid [me] do this and not make [me] focus on schoolwork" - and made us jump through a million and one hoops over the course of a good three weeks (after having waited six weeks to get the appointment to open the bank account in the first place!) but I got the account in the end.

Thanks to when my birthday is, my one year of free banking ends only a few months before my 18th birthday, so I'll probably pay those few months, turn 18, remove my mother as PSC at Companies House and Barclays before closing the account and going with another bank due to how they treated us.

I'm sure this is just one bad experience with one incompetent banker, but I'll admit that without them I would be in a much worse place, so I am grateful, even if they could've gone about it better.

Would I recommend Barclays? Yes and no. You look to be in a similar position to what I was a few months ago, so I'd say yes as a delay, a bit of rudeness and messing around is preferable to nothing. But if you were over 18, I'd stay away from Barclays.

Hope this helps (and hasn't scared you off - it's just my honest account of my experiences)!

Glad you got it sorted, and my previous experiences of Barclays wouldn't have made them my choice but as you say, a means to an end. Thanks for replying, it's appreciated.

 

[paulears]

A friend in a bank told me that there’s no reason an under 18 cannot get a business bank account from any legal point, BUT new accounts need a credit check to be passed and under 18s don’t fail it, they just can’t pass, so applications stall. It needs somebody to make a real decision, assess risk and do the right thing. Many simply don’t have enough pips on their shoulders to be able to do it, and aren’t willing to take it to somebody higher, who might.

 

[Deleted member 345558]

A friend in a bank told me that there’s no reason an under 18 cannot get a business bank account from any legal point, BUT new accounts need a credit check to be passed and under 18s don’t fail it, they just can’t pass, so applications stall. It needs somebody to make a real decision, assess risk and do the right thing. Many simply don’t have enough pips on their shoulders to be able to do it, and aren’t willing to take it to somebody higher, who might.

Good point - I suspect its also something to do with banking AML regulations, which nobody has thought to align with the Companies Act 2006!