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Bank account type for sole trader?

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  • 23-11-2015 7:21pm
    #1
    danny1986
    Registered Users Posts: 32 ✭


    Quick question for the experts here.

    For a sole trader, is it required that your bank type must be a business account, or can you use a separate personal account for sole traders?

    I ask as the fees are crippling me as my turnover is enough to get by, but i'm not raking in the big bucks by any means.

    Thanks in advance.


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    #2
    elastico
    Closed Accounts Posts: 4,592 ✭✭✭elastico


    danny1986 wrote: »
    Quick question for the experts here.

    For a sole trader, is it required that your bank type must be a business account, or can you use a separate personal account for sole traders?

    I ask as the fees are crippling me as my turnover is enough to get by, but i'm not raking in the big bucks by any means.

    Thanks in advance.

    No requirement from Revenue etc. so avoid business bank account as best you can. A simple deposit account with bank of Ireland for example in your own name is fine, minimal fees but you won't be able to get a cheque book, overdraft facility etc. and not sure about debit cards.

    You can use online banking to pay most supplier these days anyway.

    Eventually if there is a lot of money going through the account expect them to cop onto you so you may need to move to another bank after a while.


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    #3
    speedytyper
    Registered Users Posts: 25 ✭speedytyper


    danny1986 wrote: »
    Quick question for the experts here.

    For a sole trader, is it required that your bank type must be a business account, or can you use a separate personal account for sole traders?

    I ask as the fees are crippling me as my turnover is enough to get by, but i'm not raking in the big bucks by any means.

    Thanks in advance.

    I would advise the same, I'm a sole trader too and the form for a business bank account was enough to turn me off. have a current account set up in the company name and attached to my own personal online banking account so everything is there in front of me when I log in.


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    #4
    jimmii
    Registered Users Posts: 14,810 ✭✭✭✭jimmii


    danny1986 wrote: »
    Quick question for the experts here.

    For a sole trader, is it required that your bank type must be a business account, or can you use a separate personal account for sole traders?

    I ask as the fees are crippling me as my turnover is enough to get by, but i'm not raking in the big bucks by any means.

    Thanks in advance.

    As above and your bank should advise you the same. When I set up with AIB I just asked for a business account and its what they suggested its my name t/a business name would hope the other banks would suggest the same. It still works out at around €170 a quarter so not like its cheap but I do have a lot of transactions going through.


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    #5
    whatnext
    Registered Users Posts: 915 ✭✭✭whatnext


    I'm a sole trader and use a personal account and deny everything with the bank. When they cop on ask them to call back later, you'll hear nothing for another 6 months. Repeat again.


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    #6
    drunkmonkey
    Registered Users Posts: 28,195 ✭✭✭✭drunkmonkey


    If you use a credit card check out AIB's platinum card it gives you back 0.5% cash back monthly handy if you use the credit card a lot.

    I'd echo the other posters with AIB, just get a personal account with a business name on it. It's save you having to use AIB business site for your accounts and will be cheaper starting off.


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    #7
    danny1986
    Registered Users Posts: 32 ✭danny1986


    Thank you all so much.

    This is great to know. Really appreciate it.


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    #8
    imaginne
    Registered Users Posts: 9 ✭imaginne


    Hi all , im a new member here,

    looking for advise, i have gone self employed as a sole trader, i registered a business name with CRO rather than my own name,

    im registered revenue when i sent my TR1 form i said i was trading in a business name i did this before registering with CRO,

    the letter from revenue letter of registration confirmation for self assesment, header is addressed as my real name
    below that says T/A my business name followed by my address.(so if i dont have a business bank account, do i need to change this)

    my paypal account is in my business name, ( can i transfer my income from paypal to a personal current account which is in my own name,?

    my page and ebay are my business name and paypal linked,

    can i continue using my business name for all the above and use my current bank account in my own name,


    i read the posts above about having a personal bank account but using business name, i cant figure how that can be done, surely the bank will push a business account on you?

    appreciate any input,


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    #9
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    imaginne wrote: »
    i read the posts above about having a personal bank account but using business name, i cant figure how that can be done, surely the bank will push a business account on you?

    Some banks may try to push a business account. If they do, say 'no thanks I'd like to open a personal account'.


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    #10
    Axwell
    Moderators, Computer Games Moderators Posts: 10,462 Mod ✭✭✭✭Axwell


    You can get a T/A account from the bank.. company name T/A joe bloggs, its still really just a personal account rather than a business account. You will be able to lodge cheques into it made out to either you or the business names. You are better off having an account just for the business, its easier to track money coming in and out and makes life handier when sorting out your accounts and keeping track of things. If you run it through your personal things can get messy very quickly.


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    #11
    imaginne
    Registered Users Posts: 9 ✭imaginne


    Axwell wrote: »
    You can get a T/A account from the bank.. company name T/A joe bloggs, its still really just a personal account rather than a business account. You will be able to lodge cheques into it made out to either you or the business names. You are better off having an account just for the business, its easier to track money coming in and out and makes life handier when sorting out your accounts and keeping track of things. If you run it through your personal things can get messy very quickly.

    thanks for your reply, may i ask what is T/A ?


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    #12
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    imaginne wrote: »
    thanks for your reply, may i ask what is T/A ?

    Trading As

    So if your name is Fred Dunphy and your registered business name is Imaginne your bank account would be

    Fred Dunphy T/A Imaginne


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    #13
    imaginne
    Registered Users Posts: 9 ✭imaginne


    Graham wrote: »
    Trading As

    So if your name is Fred Dunphy and your registered business name is Imaginne your bank account would be

    Fred Dunphy T/A Imaginne

    im learning , every little helps lol

    thanks


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    #14
    imaginne
    Registered Users Posts: 9 ✭imaginne


    Graham wrote: »
    Trading As

    So if your name is Fred Dunphy and your registered business name is Imaginne your bank account would be

    Fred Dunphy T/A Imaginne


    real name T/A business name

    im learning , every little helps lol

    thanks


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    #15
    imaginne
    Registered Users Posts: 9 ✭imaginne


    Graham wrote: »
    Trading As

    So if your name is Fred Dunphy and your registered business name is Imaginne your bank account would be

    Fred Dunphy T/A Imaginne


    real name T/A business name

    im learning , every little helps lol

    thanks

    i shall go ahead and try this,

    was having a nightmare yesterday filling online application,

    had to select 1 of 2 options,, business premises own or rent, well i don't have business premises and my online business registered at home which is rented accomodation and not commercial, so at the end of the application it brought me more problems for doccuments they want in relation to renting business property, solicitors letter ect
    its a real headache lol


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    #16
    imaginne
    Registered Users Posts: 9 ✭imaginne


    i was wondering how this affects the debit card on online application asks what you want on your debit card, obviously there isn't enough room on it to show real name T/A business name, do i just select real name for this ?

    and how does this effect business cards/ invoices / pay pal ,web site name ect, can these just be left as the business name?
    well im thinking they can be left as i read that any payments either to business name or to real name can be lodged into bank account,

    sorry if im a pain but just want to be sure i know what i am doing and get it right,

    thanks in advance


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    #17
    JustTheOne
    Closed Accounts Posts: 5,681 ✭✭✭JustTheOne


    So if you're using the personal account to buy things for the company revenue wouldn't be too happy with that.


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    #18
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    imaginne wrote: »
    i was wondering how this affects the debit card on online application asks what you want on your debit card, obviously there isn't enough room on it to show real name T/A business name, do i just select real name for this ?

    On the debit card you'll just have your own name.
    imaginne wrote: »
    and how does this effect business cards/ invoices / pay pal ,web site name ect, can these just be left as the business name?
    well im thinking they can be left as i read that any payments either to business name or to real name can be lodged into bank account,

    Invoices, receipts, business cards etc should all be Real Name T/A Business Name
    JustTheOne wrote: »
    So if you're using the personal account to buy things for the company revenue wouldn't be too happy with that.

    A separate bank account just makes it easier to identify (and account for) business purchases. There's no specific requirement to operate a separate account.


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    #19
    imaginne
    Registered Users Posts: 9 ✭imaginne


    Graham wrote: »
    On the debit card you'll just have your own name.



    Invoices, receipts, business cards etc should all be Real Name T/A Business Name



    A separate bank account just makes it easier to identify (and account for) business purchases. There's no specific requirement to operate a separate account.

    Thank you Graham for your help


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    #20
    imaginne
    Registered Users Posts: 9 ✭imaginne


    im online now using my online banking with ulster bank, i have an existing joint account there,

    applying from the online banking for a current account, it doesn't give me the option to name a new account as (real name T/A business name,) as its using my real name from my existing account with no option to change it,

    do you think this will be ok, without the T/A business name ? as long as i have no business named cheques to pay in,

    or should i visit another bank like AUB


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    #21
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    imaginne wrote: »
    do you think this will be ok, without the T/A business name ? as long as i have no business named cheques to pay in,

    or should i visit another bank like AUB

    There's no legal issue with you using a non T/A personal account, talk to your bank as they may let you change the name on the account after it's opened.


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    #22
    Axwell
    Moderators, Computer Games Moderators Posts: 10,462 Mod ✭✭✭✭Axwell


    imaginne wrote: »
    im online now using my online banking with ulster bank, i have an existing joint account there,

    applying from the online banking for a current account, it doesn't give me the option to name a new account as (real name T/A business name,) as its using my real name from my existing account with no option to change it,

    do you think this will be ok, without the T/A business name ? as long as i have no business named cheques to pay in,

    or should i visit another bank like AUB

    Just visit your bank and get the forms and tell them you want an account setup T/A. Will take you a few minutes to fill the form in and you will also be able to find out any offers they have for new accounts etc for that purpose.


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    #23
    imaginne
    Registered Users Posts: 9 ✭imaginne


    Graham wrote: »
    There's no legal issue with you using a non T/A personal account, talk to your bank as they may let you change the name on the account after it's opened.

    i have gone for opening the account as of online, and will call at bank at some point to see what they can do for name change


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