Doing things legitimately, and a question about insurance

[Fr0dders]

cant comment on your second point but I would probably say yes you do NEED a business bank account. As its erm good business practice and when it comes to working out tax VAT etc at least you'll know what that cheque for 12.99 was for and was that debit of 59.99 from B&Q was for a few sheets of wood and tools for creating an outdoor studio and not on those tins of paint for painting your house

this

anything to make your tax return easier is worth doing.

 

[Polarbear]

Two quick questions:

1 - Do I NEED a business bank account? I still haven't got around to meeting the bank manager and setting it up, and now I think I might just keep everything in my personal account for now.

2 - My first national insurance direct debit was taken today (since registering myself as a sold trader), and it was £48. This seems really high!!!! Is this right?

1) You really do need a separate bank account (although you can be cheeky to start with and make it a separate personal rather then business account). As said it makes things much easier.

2) Assuming that you ticked the box on the CA5601 saying that you wanted Class 2 contributions from the start of your self-employment to be collected with the first Direct Debit payment then that sounds fine (it will have collected the 3 month backlog as well).

 

[TheBigCheese]

Definitely get a business bank account it makes things so much easier!

The last I knew about getting a business bank account (may have now changed due to the recession)


They don't have to cost the earth, you can get a business bank account at the Co-op virtually free (you have to deposit several thousand in cash every month to incur charges) and can access it at any post office.

A&L offered a free one, but there are bad reports about their customer service since they were taken over.

I would highly recommend joining the Federation of Small Business, it'll cost you about £170 for your first year, £140 each year after that, that can include a free business bank account, all the legal advice you could need free of charge, discounts on credit card facilities and loads of other discounted goodies.

It's definitely worth it, I'm in my third year of being a member and it's invaluable!

*edit* oh for gods sake...just realised I posted almost exactly the same thing two months ago.

My comments still stand though!