1. Open a Dedicated Business Bank Account

At first, managing both a personal and business bank account might seem like extra hassle. But in reality, it makes running your business much more efficient.

• Open a separate bank account just for your Business

• Start-up accounts like NatWest will even offer free accounting software tools if you set up an account

• https://www.natwest.com/business/bank-accounts/startup-bank-account.html

Why use a separate business bank account?

Using a dedicated account keeps your business and personal finances separate, making everything from tracking expenses to managing income much simpler.

Benefits include:

• Clear separation of personal and business funds

• Easier tracking of expenses - Paying suppliers, purchasing products, paying staff, covering other business costs from one dedicated account makes it easier to track spending and manage your cash flow.

• Easier income monitoring - when all customer payments and income go into one business account, it’s far easier to monitor inflows and keep tabs on how much you’re earning.

• Cleaner records for tax and accounting - Come year-end, your accountant won’t need to sift through a mix of personal and business transactions. A dedicated business account keeps things clean and audit-ready.

• A more professional image when invoicing

💡Tip: Consider a second account just for taxes—helps you stay prepared and avoid surprises. Every time you get paid, move your tax portion into this account - treat it like it’s not yours — because technically, it isn’t!

2. Set Aside a Tax Percentage with Every Payment

• Aim to set aside 20-25% of each payment for taxes.

• This includes income tax, national insurance/self-employment contributions, and potentially VAT.

  • Come tax time, you’ll feel so much calmer knowing it’s already covered.

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