When operating as a sole trader, or as a business, it is important to arrange for an appropriate second bank account to keep accurate records of your incomings and outgoings. Having a separate account will also make it easier for you to reconcile your information at the end of the year.
Depending on the bank which you use, it may be possible to use a ‘standard’ bank account for the purposes of running your business.
Some consultants have reported that banks have encouraged or forced closure of ‘personal’ accounts which have been used for business use. There are a number of fee-free providers which we would suggest using.