Business bank accounts

[vickster]

I'm going to be setting up a Limited Company soon as a freelancer and will need a business bank account to pay fees into etc.

Santander and Natwest seem to be favoured on MSE etc, not least because they are fee free for 18 and 24 months respectively. I have a Natwest Current account (have done for 25 years and no need to change) so I'm inclined to stick with them as simple to pay myself etc

Anybody have any experience of either bank for business or other UK banks? Cheers

 

[Vapin' Joe]

I had a business account with Barclays for about ten years. I had no problems, but I suspect all the major players are pretty much of a muchness. If you are happy with a quarter of a century of service from Natwest I'd be inclined to stick with them.

 

[phil_hg_uk]

I'm going to be setting up a Limited Company soon as a freelancer and will need a business bank account to pay fees into etc.

Santander and Natwest seem to be favoured on MSE etc, not least because they are fee free for 18 and 24 months respectively. I have a Natwest Current account (have done for 25 years and no need to change) so I'm inclined to stick with them as simple to pay myself etc

Anybody have any experience of either bank for business or other UK banks? Cheers

I have had a Santander Business Bank Account for 12 years and they have been very good, the only slip up they made was to promise NO FEES FOREVER in their adverts then try to introduce fees later on, so we all reported them to the financial ombudsman who would then have had to investigate Santander & they then backed down & gave all the people who opened the accounts at the start free backing forever.

Apart from that I have had zero problems

 

[vickster]

I've never had any issues with Natwest, but then I've never really done anything where they might have got tricksy...I don't think I've been overdrawn in 20 years, never missed a payment etc

I'll go have a chat with the two banks and see what they have to say.

Another related question, I am likely to be working at home at least some of the time, and possibly a fair amount. My home insurance covers me for being at home/business use (as in my last perm job I was mix home/office based). Currently I'm contracting, so am office based with the odd day at home.

However, if I'm going to have home as a business address too, I presume I need to tell the mortgage provider (HSBC in this case). Am I likely to face issues? I have a smallish mortgage (<35k I think) which I've kept going given interest rates are low and I believe it's good to have some debt from a credit rating perspective (I have no other debt). Obviously, when I've got the business up and running, I'll get in touch with HSBC, but I'm wondering whether It would be better to just pay off the mortgage?

This stuff is all new to me, so apologies for any daft questions!

 

[stephec]

If you've got a home office do you already claim tax relief on your utility bills for it?

 

[phil_hg_uk]

The only problems I have had with working from home have been with insurance. I have my home contents, business contents & buildings all on one policy as most home insurance companies didnt want to touch me as soon as they found out I was also running a business from home.

My mortgage provider couldn't care less as long as I just let them know.

 

[vickster]

If you've got a home office do you already claim tax relief on your utility bills for it?

I don't yet have one

 

[stephec]

I don't yet have one

I work from home as an employee and was told about it.

Someone who did it said that for the amount he saved versus filling out a tax return every year he wished he hadn't bothered, might be different if it's your own company though.

 

[Ian H]

I don't yet have one

It doesn't have to be an actual office. Just use of space for business.

 

[vickster]

It doesn't have to be an actual office. Just use of space for business.

It'll be my third bedroom

 

[screenman]

Halifax are one of the only insurers that will do us, we do though have customers coming to the house. Bank wise I have done most of them and the best so far is The Co-op, free baning with the FSB and fantastic people to talk too in the UK call centre's.

You can claim for use of space, share of utilities etc. but in honesty it certainly does not amount too much. In this house we have an office, a clinic room and a training room, all genuine business use and claimed for.

 

[accountantpete]

Starting a limited company can be a nightmare - it is a separate legal entity from yourself so any equipment the company owns is not yours and vice versa. And there are very strict tax rules to consider as well.

You need to see a local accountant (try and get one that does free start up consultations) and also make sure that they take on the role of filing Companies House paperwork - a client recently got stung with a £1500 late filing fine relating to her property management (ie her house) company

 

[vickster]

I work from home as an employee and was told about it.

Someone who did it said that for the amount he saved versus filling out a tax return every year he wished he hadn't bothered, might be different if it's your own company though.

Yes quite happy not to do tax returns. Will have to once business running but I'll use an accountant

 

[vickster]

Halifax are one of the only insurers that will do us, we do though have customers coming to the house. Bank wise I have done most of them and the best so far is The Co-op, free baning with the FSB and fantastic people to talk too in the UK call centre's.

You can claim for use of space, share of utilities etc. but in honesty it certainly does not amount too much. In this house we have an office, a clinic room and a training room, all genuine business use and claimed for.

Aren't coop bank in deep...?

 

[screenman]

Aren't coop bank in deep...?

Maybe, but they sure look after me and I have found their customer service better than any bank I have ever been with.