Your partnership:
Opening a bank account
If you are a sole practitioner or partnership, we strongly recommend that you open a business bank account, as distinct from your personal bank account to enable you to keep your business finances separate from your personal finances. Your sales receipts should be banked in your business bank account, and any payments, standing orders, or direct debits associated with your business should be paid out of this account. You should make transfers from this account to your personal account to fund your personal spending.
As well as opening a main business account, we also recommend that you open a tax savings account, which should be interest bearing. It may actually be a building society account rather than a bank account. We recommend that you make regular monthly transfers from your main business account to your tax savings account(s) to save for the payment of VAT, income tax and national insurance.
If your business is run through a company then it is essential to open a company bank account. A company is a separate legal entity to the individuals who own or run it. If you put company monies in your personal bank account then there will be adverse tax implications.
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Where next?
Within Setting up ....
- Choosing a name
- Setting up as a sole practitioner
- Setting up a partnership
- Setting up a limited liability partnership
- Choosing your accounting date
Within Your partnership ...
- Your business structure
- Accounting systems
- Payroll and PAYE
- National Insurance Contributions
- VAT
- Income tax
- Exiting a partnership
General ...
- Contact us about this issue
- Read about how we can help you & your family
- Request a meeting with us
