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Contractor Ltd Co Business Bank Account

Do I need to set up a business bank account as a contractor/freelancer Ltd Co?

In short YES.

Your limited company is a separate legal entity to you as an individual director/shareholder. Therefore the company will need its own business bank account.

In addition, it is always advisable to keep your contractor business bank transactions separate from your personal transactions. Transparency is essential, in particular if HMRC ever decides to audit your transactions for a tax inspection.

How can I set up a contractor business bank account?

The first thing is to ensure your limited company has been created and that you have all the necessary incorporation documents. You will need these along with a piece of ID (such as your passport) to confirm your identity.

You’ll then need to decide upon which banking service to use.

We at Aidhan Accountancy are affiliated with Barclays and can instigate the opening of a contractor business bank account with them in a quick and efficient manner.

However, the decision on choosing a contractor business bank account is entirely up to you.

A list of the services Barclay's Bank provides:

  • Quick, efficient and easy set up – we will instigate the opening of a Barclays account for you to expedite things
  • Your own local business manager who is dedicated to helping you towards reaching your goals at every step
  • Fast and easy access to your Barclays business account - by phone, online 24/7 or at any branch
  • Access to your local business team, available over the phone to help with your everyday or urgent banking needs - available 24/7, even at the weekend
  • Free day-to-day banking transactions for up to two years (start-ups only)
  • A business debit card, cheque book and paying in book
  • Free local business seminars and workshops where you'll get practical tips on; growing profits, marketing your business, trading online and employing staff

How long can it take to open a contractor business bank account?

We often estimate between 1-4 weeks. Much depends upon appointment availability in your local bank branch and the number of checks the bank has to carry out.

0203 368 3173