If you are planning to set up a Limited Company, the answer is always yes. You should always have a separate bank account in the company name as it is a requirement; your company is a separate legal entity. It is ideal to get your chosen name registered with Companies House first so you know what name the business bank account will need to be opened in. One way to check the availability of your name ideas is to check with Companies House beta website, searching the name and reviewing the results. Once you have your name registered you can apply for the account at your desired bank.If you are a sole trade then there’s no requirement to have a separate bank account, but it is recommended that you do set one up for the following reasons:Most accounting software will ask for a bank account feed, which should be linked to the business account so that personal items do not get muddled up in the information. This makes it easier to track the business’ actions and see how well it is performing rather than shifting through information of which some would not be relevant. If you have a bookkeeper, then the use of a sole business bank account makes it easier and quicker for them to enter and reconcile the bank transactions. There is a risk with a personal account that business expenses are missed due to uncertainty in the transaction or being missed among the transactions in the bank statement.
Get in touch and see how we can help you