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Q: Do I need to open a business bank account or can I simply use my personal current account for my small business?

Jan 26 2009

Answered by: Ashley de Safrin Ask a question

If you are a sole trader, you may keep a current account in your name for your business, but it is advisable to have a separate business account so that you can differentiate your personal and your business expenditure.

If you set up a limited company you must definitely have a separate business account because as a Director of a limited company you are formerly an employee and have responsibilities about the way you spend the company’s money.

Comments [1]

Comment by Andrew Millet

Friday 13th February 2009

By having your personal and business transactions in one bank account you may find it more difficult to convince HMRC what are genuine business costs - amillet@wisteria.co.uk

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