Taxi Driver Online

I have just received a letter from my bank informing me they are closing my account because im using it as a business account (i get my card payment work paid into it) . Can anyone recommend a 'free business account ' i just want to process my card transactions through it and pay my fuel and shopping with from it.

I always used Santander (Abbey national originally) because provided you stay within certain limits (quite substantial so fine for sole trader) it's free. I have actually just closed it as I no longer have a business but in over 25 years I never once paid a penny in bank charges

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lack of modern legislation is the iceberg sinking the titanic of the transport sector

I've used Nationwide forever and never had a problem.

I use a paid account, think it costs me £13 a month. But for that it covers any mobile phone for me and the family, holiday insurance, and breakdown cover for UK and Europe for three cars.

Basically it's a no-brainer.

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IDFIMH

Anyway, as regards the business account thingy, like Edders I've used a personal account for all the time I've been in the trade, and never had any issues. And haven't paid any charges for years, and they'd only apply if I exceeded my overdraft limit, or whatever.

And as far as HMRC etc concerned, perfectly legitimate to use a personal account for sole trader business purposes, as far as I know.

So I'm hoping YBB's experience isn't a sign of things to come, particularly as I rarely deposit cash these days, and have regular card deposits going through

Only recent caveat is looking back to lockdown days when, as regulars on here will recall, banks were more likely to give bounce back loans to people with business accounts, although I don't think that's how HM Government intended the scheme to work.

Apart from that, don't know much at all about business accounts, so can't offer one word of advice as regards the question YBB actually asked

so you did what you always criticise me for skim reading the posts

Mine was as stated a Santander BUSINESS account

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lack of modern legislation is the iceberg sinking the titanic of the transport sector

Indeed, Edders, I kind of read your post as saying you were using a personal account for business purposes, but had never paid any charges.

Since you didn't specifically state it was a business account, I construed it as above

I made a call to Nationwide and they have confirmed that my account will be closed even though i have been using it for many years ,its considered an business because i get my card payment money deposited into it. Even though i have another saving account with them it made no difference , i think this could be the beginning of a crackdown on sole traders using current accounts
for business purposes .

Mettle for me i think.

Looks like a few posts have been deleted from this thread since last night

But, Edders, as I recall what you said yesterday, you didn't actually state it was a business account in your first post, although I see what you're getting at now.

And I'm sure he'll correct me if I'm wrong, but Sussex is also talking about a personal account in his post, but doesn't specifically say so.

And a few seconds with Google finds this account, which is presumably the one Sussex is talking about. Of course, since YBB's account was also with Nationwide, presumably no point anyone else looking at the likes of this one.

Particularly if you read the brief list of conditions to the right of the page

https://www.nationwide.co.uk/current-accounts/flexplus/

Joint personal account with Mrs Sx.

All my card payments go in and I have never had a problem.

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IDFIMH

But it is for my personal account. I don't take payments for anyone else.

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IDFIMH

I have a Bank of Scotland Business bank account and also a Business Bonus bank account with a Debit Card....the Former is for the daily In's and Out's of the business the latter for Larger Banking amounts as it offers Higher interest, from their I transfer drawings to a Private Current account and that way all income and drawngs are transparent and easy, but only the Business Account incurs bank charges.

Of course, it's commonplace for sole traders to use personal accounts, and HMRC quite happy about that.

But, looking around, it's probable that using a personal account for business purposes breaches most banks' terms and conditions (not sure what proportion that would be, but I'd guess it's most personal accounts).

I've been using my personal account all the time I've been in the trade, and have generally just deposited cash (and the very occasional cheque) from the taxi stuff. And any taxi-related payments have generally just been car stuff, garage bills etc. So to that extent, no one from the bank would know the account is used for anything other than personal purposes.

Of course, now I've got the Zettle stuff going through. And, I mean, no-one uses Zettle for anything other than business purposes, presumably?

So to that extent presumably anyone from the bank looking at my account would be aware it's being used for business purposes. So who knows what the banks are thinking? Obviously Nationwide are maybe cracking down, but surely the banks will be aware of all the personal accounts used for business purposes because of the card thing in particular, so maybe the others aren't that bothered

In my case they certainly were not I was told in no uncertain terms either separate my business and personal accounts or else ! But of course I was running a small collective of drivers.

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lack of modern legislation is the iceberg sinking the titanic of the transport sector