Are you running a business in the UK and have not yet got a bank account? If this is a startup, you should know about the banking policies.
One of the most crucial aspects of financial transactions is banking. Therefore, you must open a bank account for the business for smooth transactions.
However, confusion arises about whether you can open multiple bank accounts. The UK government permits this. A valid question in this respect can be “How many bank business accounts can you have UK?”
I will say many. No specific limit is there about opening a business bank account in the UK. You must verify that they are valid and authentic.
Besides, you must disclose them while submitting the Tax Return annually.
This piece of article will elaborate on the number of banks you can open.
Table of Contents
Why to Open Multiple Business Accounts in UK Banks?
Usually, complex and large-scale businesses need more than one bank account. In the case of a sole trader, it may not be necessary. Besides, a sole trader can also use his savings account for business purposes.
Furthermore, banks offer various facilities on different accounts.
Hence, businesses can get all these benefits by opening multiple accounts. Limited companies must open many accounts to simplify operations. They cannot operate only through one personal or current account.
A large business can have branches in various states and countries. Therefore, handling such a massive volume of transactions through one account is impossible. So, they must apply for multiple bank accounts in the UK.
Most banks now operate in a centralised manner. You can easily transact in a branch outside the UK from any place within the UK. The online banking system also facilitates the operation of multiple accounts.
Benefits of Multiple Business Accounts
Multiple business accounts come with several benefits. They are:-
- Improved Cashflow: Segregation of banking transactions improves cash flow management. Moreover, you can easily track records of expenses under different heads. It keeps you in a better position to make decisions for the future.
- Lesser Frauds: Multiple bank accounts support lesser frauds. Financial criminals can cause huge losses, even to an experienced business owner. Opening different accounts can spread this risk.
- Streamlined Operations: Invoicing is easier with the help of multiple accounts. You can divide the accounts based on different segments. For example, opening separate bank accounts for income and expenses in a particular region. Moreover, you may also accumulate cash for future tax payments.
- Tailored Benefits: Several banking benefits are available on different accounts. You can analyse them and open bank accounts for maximum advantage. For instance, a bank can automatically invest your money. It is possible if your account has attached market-leading interest benefits.
So, now you are confident that you can open more than one bank business accounts in the UK. Now, our concern is, how many bank business accounts can you have UK? The following discussion will talk about this.
How Many Bank Business Accounts Can You Have In UK?
The efficiency of a business can improve through multiple bank accounts. However, there is no rule regarding how many bank business accounts can you have UK. You have to form a suitable strategy to safeguard your assets.
Moreover, you can distribute the risks through multiple accounts. Besides, opening a multi-currency account is also possible if you deal with several countries. No bank can legally restrict opening a separate account with another bank. However, a few UK banks can prohibit opening more than one account under the same business name.
On the other hand, money management becomes crucial for operating multiple accounts. You have to categorise several operations like payroll, tax payments, bill payments, etc.
This will ensure better banking, simplified transactions, and accurate bookkeeping. Whether you open two accounts or five accounts, that’s up to you. UK’s banking rules will not put restrictions on the number of business accounts.
You must keep track of all the accounts to avoid disruptions. Ensure you have permission to operate all your accounts in one or different banks. Keep a relationship manager for smooth operations and updated information.
FAQ
Can I open a business bank account in a UK-based bank’s branch in another country?
Yes. You have the permission to open a bank account in another country.
Do I have to pay any extra charges for multiple bank accounts in the UK?
Yes. Several fees are attached to different bank accounts. Some of them may be transaction fees, annual maintenance fees, SMS charges, etc.
Conclusion
How many bank business accounts can you have UK? is an important question for UK-based businessmen. There is no rule that you can open only one account in a bank. You can simplify transactions by opening multiple bank accounts. However, no specific limitation is there with the number of bank accounts.
You may open different accounts in different states or branches. Besides, you can also choose other banks to maintain your business account. They help streamline operations, reduce risks, improve cashflows, and provide more banking benefits.
