I could understand it if you had a business with employees and you sold products on a daily basis with loads of transactions, or if you plan to get into debt... but for invoicing someone every month? Personal account seems fine, and I'm sure people have several of them already.
Business bank accounts can be had for free - most contractor-friendly accountants have an arrangement with Cater-Allen, for instance.
It is a requirement for partecipating in certain contests (eg: Microsoft had a program for investing in indie games company and they required to use a business account entitled to the company) but I still haven't heard such requirement from a client.
I'd be surprised if it wasn't a requirement with many clients though, it shows a level of professionalism.
>> and they're certainly not free AFAIK.
You haven't looked very hard then...
Agree, but I've never seen such clause in a contract.
> You haven't looked very hard then...
I guess it's a service provided by only certain accountants?
All the (chartered) accountants I've talked to never offered a free business account.
They offered introduction to paid business account but that's the usual.
If it's not and there is a free business banking account with a reputable bank out somewhere I'll be happy to look into it.
They are not required by law (here in UK) but they're suggested by pretty much every accountant out there.
I don't use a business account when working for myself, but I do use one for a company I've founded with other people.
I'd say it's more useful when it's not a one-man ltd.
Cater Allen is practically free, I think there is some sort of minimum average balance but if you keep both a rainy day and your tax payments in there it's a trivial task.