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Cardwell Management Services UK Limited
Regency House, 45-51 Chorley New Road, Bolton, BL1 4QR
Cardwell Management Services UK Limited
Regency House, 45-51 Chorley New Road, Bolton, BL1 4QR
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Just4contractors.com > New to Contracting > Choosing a Bank
Which Bank is right for me?
As a professional freelance contractor, it is advisable to keep your personal affairs separate from those of the company.
Your company is a separate legal identity so you need to ensure that it has its own bank account. There are freelancers who prefer to have separate accounts in separate banks, and there are others who prefer to develop a relationship with a particular bank. It is really up to you and your own preference.
However, when choosing a bank, take the following into consideration:
1. Free banking. - dependednt upon the volume of transactions, there are banks that will offer free banking. Typically, Freelance Contractors don't have a great volume of transactions so you should be able to benefit from this.
2. Interest rate on cash savings. The interest earrned on company money is outside of IR35 so it is a good idea to use a separate business savings account. There are high-rate business savings accounts available over the Internet that have specialist freelancer accounts. You should be building up a nice credit balance, espececially if you are following our advice to build up a 6 month buffer, so make this money work for you.
3. Company cheque book or company credit card - use the credit card to cover your expenses - you will get up to 56 days free interest
.
4. Credit arrangement facilities such as loan finance and overdraft.
As you grow, you may require additionla banking facilities such as International payments if you are undertaking work in another country or a commercial mortgage if you wish to invest your savings into bricks and mortar.
See Also
Managing your finances
Choosing the right Accountant
Getting Paid
Partner Banks
Recommended Links
Your company is a separate legal identity so you need to ensure that it has its own bank account. There are freelancers who prefer to have separate accounts in separate banks, and there are others who prefer to develop a relationship with a particular bank. It is really up to you and your own preference.
However, when choosing a bank, take the following into consideration:
1. Free banking. - dependednt upon the volume of transactions, there are banks that will offer free banking. Typically, Freelance Contractors don't have a great volume of transactions so you should be able to benefit from this.
2. Interest rate on cash savings. The interest earrned on company money is outside of IR35 so it is a good idea to use a separate business savings account. There are high-rate business savings accounts available over the Internet that have specialist freelancer accounts. You should be building up a nice credit balance, espececially if you are following our advice to build up a 6 month buffer, so make this money work for you.
3. Company cheque book or company credit card - use the credit card to cover your expenses - you will get up to 56 days free interest
.
4. Credit arrangement facilities such as loan finance and overdraft.
As you grow, you may require additionla banking facilities such as International payments if you are undertaking work in another country or a commercial mortgage if you wish to invest your savings into bricks and mortar.
See Also
Managing your finances
Choosing the right Accountant
Getting Paid
Partner Banks
Recommended Links