‘Do Sole Traders require a separate business bank account’

Posted on 29th March 2022 by Dominique Childs

Leanne Piper one of our Digital Accounts Associates has recently prepared a blog explaining the benefits of keeping things simple and using a separate business bank account for your self-employed business…

Many people are aware that Companies are required to have a separate Business Bank Account for business transactions. I am here to talk to you about whether or not a Business Bank account is useful to Sole Traders.

It is!

If you do not own a Company, you are likely to be classed as a Sole Trader or Partnership, which covers a large portion of the UK’s private business sector. A Business bank account for Sole Traders is not a legal requirement, and it is possible to use your private bank account for business use, however, sit back and ask yourself, ‘is this the most efficient way to keep track of my business transactions?’

Here are our 5 top tips:

Having a Business Bank account will not only improve your accounting records, but is also a huge time-saver as you won’t have the confusing mixture of personal and business transactions within one account.

Some High Street bank accounts may restrict you from depositing business income into a personal bank account.

A Business bank account may incur small costs, however there are a number of different features that are beneficial such as, organised handling of expenses and financial protection for yourself and your business just to name a couple.

Having a separate business bank account allows you to be able to manage your cash flow more accurately without your personal transactions slowing the process.

A Business bank account also means that you are ready for ‘Making Tax Digital’, as you will find it easier to use cloud software to file the returns needed.

Dominique Childs

Dominique’s exceptional service ethic stems from her deep commitment to our clients and their businesses. Solving any issues that may arise in a professional and approachable manner, Dominique’s knowledge of accountancy and experience in client facing roles facilitates our client support.

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2024-07-09

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2024-03-19

We moved accountants to specifically follow David a number of years ago and have completely changed the running of our business for the better, through planning ahead we have managed to change our circumstances with an over drawn loan account and corporation and tax bills outstanding to a strategically run method of being able to clear the over drawn loan account and balance our other tax liabilities with advice and support from David We continue to be supported and take advice from his expert knowledge and guidance going forward and would highly recommend the Steven Burton team for your Accountancy needs.

陈新谱

2023-12-12

Great service. Helpful and friendly people.

Vince Strafford

2023-10-19

We moved our accountancy needs to Steven Burton and Co - specifically with David. It’s been night and day compared to our previous provider - we now have a partner who is helping us to develop our business and in a way that means we have long term security. Local, accessible and responsive - everything we need in a company that provides business critical services.

MARK WALSH

2023-06-26

The team here are fantastic - every detail thought of and explained clearly. I have no hesitation in recommending Steve and the team to any business, be it fledgling or established. You get what you pay for and more.

Jo C

2023-06-20

The team at Steven Burton & Co have been lovely to work with, helping us with our partnership accounts over the last couple of years. They are always on hand to answer any queries we have and are happy to explain in as much detail as we require. Everyone we have spoken to has been polite, welcoming and extremely knowledgeable and we look forward to continuing to work together as our business grows.

Sam Nagle

2023-05-12

A truly fantastic accountants. Unlike any other accountants we have had in the past. They are 100 percent on the ball, helpful with fantastic advice. Not just sound accountancy advice but advising the business as a whole in various areas. Strategic quarterly reviews to really delve into the business to make sure profit margins are where they should be, and if they aren’t, they’ll look into improvements that can be made. Nothing is too much and the phone lines are always open for advice. Unlike most accountants their focus isn’t just on completing your annual accounts and not seeing you again for another year. I cannot praise the team enough for all the hard work they put in! They really have shifted our focus onto the aspects of the business that we were perhaps neglecting!

Steve Lincoln

2023-05-11

The team at Steve Burton & Co provide a first class personal service to their customers. They support business owners through every step of the life cycle of their business, adding true value with their relationship.

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2023-05-05

I work closely with the team at Steven Burton & Co. to assist their clients with a range of services and I can't speak highly enough of the professionalism and care that they demonstrate for their clients.