Businesses that are operated as limited companies or partnerships need to set up a business bank account to report the taxes appropriately. Especially if you are planning to expand your business in the United Kingdom, then opening a business bank account in the UK should be one of your highest priorities. The reason behind this is that the law considers your company in the United Kingdom as a legal individual. Therefore you cannot mix up your personal and business funds together.
There are several advantages to opening a business bank account in the UK, some of which are explained below:
Having a better presence in the UK:
If you already have a UK Company then having a business bank account for your company will give it an enhanced presence in the UK. It will help you gain more trust from your customers and a better banking experience for having a local UK Bank account.
Tax reporting to HMRC:
You need to file a tax return every year and for doing this you must keep records of your business expenses and sales. If you are using a personal bank account for business transactions, then it can make the process more complicated. Therefore, having a proper business account can make it easier to keep track of the business cash flow and complete your tax return.
Business banking benefits:
Most of the banks provide special offers for business banking, some offer free banking support for a certain time frame while some offer reduced fees/charges for new business clients.
Any professional UK business would have a Business account for their Company, which means you can send and receive payments to and from your clients and suppliers directly under your company's name with your company's business bank account.
Faster local payments:
A UK business bank account has a special feature where you can send local funds instantly, this feature is called faster payments. You can use faster payments to send and receive local UK funds to and from your clients and suppliers with ease.
Hence, opening a business bank account in the UK will help you operate your business easily with a lesser hassle and better payment options. It will also give you a professional approach to your business.
For more information watch the video given below: