I’ve opened a free business account. I’m a sole trader and have been for 10+ years, alongside other employment.
Before now, I have always used my personal bank account. My self-employed finances are very simple. Each month I receive approximately 10 invoices and I have next to no expenses (occasionally I will buy a pad of paper, or some printer ink). I’ve always taken 40% of the invoices received and put it in a pot to cover tax, NIC and student loan. The rest I transfer to my joint account where all of our household spending takes place.
I thought it would be simple enough to recreate this system in the business account but I forgot that the business pots are regular pots, not savings pots. So now I am faced with the choice of losing interest on 40% of my gross over the 18 months between earning it and paying my SATR the following January, or keeping the tax in a savings pot in my personal account. In which case my business account will simply receive my payments and then I will immediately (and manually) transfer the same amount into my personal account to then be treated exactly as before which makes the whole thing seem pointless.
What are your thoughts?