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Hi everyone!
Situation: I'm an electrical apprentice without employment atm. I have been offered work in the near future, with a subcontractor on a big London site. The other day, I registered with the CIS
I'm registered self-employed (have been landscaping past 15 odd years). I have a business bank account, but the business is a partnership, so I'm assuming that I won't be using that one to be paid with.

Can I use my personal bank account? Or do I need to open a separate business account? Can't find a straight answer haha.
I'm still working through my nvq3 etc, and I'm expecting to be an improver for a few years before even thinking about setting up a business.
Many thanks
 
Personal account is fine. Basically, when you put your invoice in, you itemise materials and labour. CIS tax is deducted from the labour part by whoever is paying you. They pay it direct to the tax man, and send you a voucher saying tax has been paid on those earnings.
 
If you are essentially self-employed then you can use a personal account (but don't tell the bank) as then you will avoid the serious hassle these days of opening a new business account and the added fees for simply using it.

If you are operating as a Ltd company then I'm pretty sure it needs to be a business account.

However, if you can I would open a new personal account and use it exclusively for any income and any outgoings (which are probably limited, say insurance, professional fees, tools, etc) as that way when it comes to doing your tax returns it is all far simpler to find. And if ever challenged by HMRC, to justify.
 
If you are essentially self-employed then you can use a personal account (but don't tell the bank) as then you will avoid the serious hassle these days of opening a new business account and the added fees for simply using it.

If you are operating as a Ltd company then I'm pretty sure it needs to be a business account.

However, if you can I would open a new personal account and use it exclusively for any income and any outgoings (which are probably limited, say insurance, professional fees, tools, etc) as that way when it comes to doing your tax returns it is all far simpler to find. And if ever challenged by HMRC, to justify.
Good advice, thank you. Looking at starling bank's sole trader account.
 
It makes life easier if you can use a separate account as a holding area for money coming in, and then transfer your "pay" each month to your normal current account to spend.

If you can just pay yourself something like 1/2 - 2/3 of the income each month, that way when you have to settle with HMRC the ~1/3 remaining ought to cover tax & NI without nasty surprises.
 
It makes life easier if you can use a separate account as a holding area for money coming in, and then transfer your "pay" each month to your normal current account to spend.

If you can just pay yourself something like 1/2 - 2/3 of the income each month, that way when you have to settle with HMRC the ~1/3 remaining ought to cover tax & NI without nasty surprises.
Yeah, that's what I did with my previous business, which was a partnership. Easy to designate "partners drawings" to HMRC
 

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