I am about to receive a few incidental < 500£ payments in to my account.
Continuing a business I run already abroad but am in process to set this up here in UK. Taxation here is much more favourable. (Who would’ve thought I would ever say that? )
The payments are against invoices.
I am not keen on opening another account only for these few initial payments.
Would Monzo allow me some time to decide whether I set-up a business account or not?
It would be as sole trader. I do understand that if I would open a Ltd. that they would object against this.
That’s a good tip, I might do that as well.
Starling hasn’t yet opened the gates to new sole trader customers. That would have been my first choice, but Monzo is my bank for personal account, so why not.
Which company are the invoices issued by? If the invoices are already issued by the foreign company you have, then tax-wise they are still considered as income of the other company. I don’t see a major problem with receiving them in your personal account and then immediately paying back the foreign company from it.
If you are intending to receive these payments for your UK-based business (as a sole trader) then you’d technically need to void the invoices from your foreign company and re-invoice the client from your UK-based business (in your own name if you’re a sole-trader, though I would really recommend setting up a limited company as tax-wise it becomes more efficient). If you plan on trading as a sole trader then there’s no requirement to have a separate account and you can keep both your personal and business finances in the same account and I haven’t seen Monzo being against this.
Invoices are from UK sole trader (me).
I already closed the Dutch company.
Clients know they receive the invoices through the new set up.
I am not going to risk receiving them in my personal account. At the moment I am in process of opening a Monzo Business account. Let’s see how that goes.
If the invoices are from your own name there is no “risk” in receiving them in a personal account. As a sole trader there is no law in the UK preventing you from using a personal account for both personal and business finances, and unless this changed recently I don’t think Monzo has any problems with that either.
I would however really suggest considering opening a limited company instead.
Maybe it has changed in the meantime or my memory is wrong. Definitely go by what the T&Cs tell you - if they say you can’t use a personal Monzo account for sole-trader business then indeed you need to find other options like the Monzo business account.
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