I am just about to be fully committed to doing a self build, I seen the plot, made an offer to the owner subject to being awarded outline planning permission which I applied for at my expense, outline planning has now been awarded and solicitors have now been instructed to do all their checks and exchange deeds.

I am a private self builder and have got about 2/3’s of the complete plot and build purchase saved up, once I get the new build to a certain stage I’ll put my own house on the market and move into my caravan so my question is:

My savings are in a personal bank account so would it be wise to open up a separate dedicated bank account  so that transactions for the build are coming out of one bank account?

 

If so does it need to be a business account as I would pay charges for this?

 

To get started I could buy the plot from my personal account as this shouldn’t affect VAT payments as their is no Vat on the plot and I would only do this if I can’t get a separate bank account set up in time?

 

kind regards,

Kevan.

we didn't bother. everything came from our personal account.

 

but, and this is important, make all your purchases (if at all possible) using a credit card! not only does it give you protection but you can earn air miles/cashback/rewards etc. i had accounts with builders merchants and would pay off the credit with them with credit cards so i could postpone the payments even further and get air miles.

 

we got 2 x credit cards....a BA Amex and a Virgin Mastercard (for the places that don't take Amex). the Avios/Virgin Air Miles points alone during our build are enough for us to holiday on. after years of building it was a well deserved reward. Just pay off the credit cards every month from your personal bank account and enjoy the air miles and companion vouchers.

 

i can give you a referral code for a card if you want one. we'd both get extra air miles as a reward. 😉 

24 minutes ago, Kevan Marshall said:

savings are in a personal bank account so would it be wise to open up a separate dedicated bank account  so that transactions for the build are coming out of one bank account

Really makes no difference, we did our whole build from various private bank accounts.

 

Your not a business, so no need for a business account either.

 

All the tax man is interested in VAT receipts. So get in the habit of asking for them. Most companies don't seem to give them out unless asked for - B&Q for example. 

 

Shop around for good prices, prices will vary hugely.

Just to add to @Thorfun's comments.

You don't have to pay the complete balance by credit card, usually 100 quid gives you the protection.

If the trader does not take credit cards, move on to one that does.

A credit card is not the same as a debit card.

Be wary of very large transactions by bank transfer.

 

2 minutes ago, SteamyTea said:

Just to add to @Thorfun's comments.

You don't have to pay the complete balance by credit card, usually 100 quid gives you the protection.

If the trader does not take credit cards, move on to one that does.

A credit card is not the same as a debit card.

Be wary of very large transactions by bank transfer.

 

I’ll probably open up another account, I presume everyone is wary of cheque payments nowadays, I spoke to a readymix company and they told they take card details to open up account and take the money out after every load or batches of loads…

7 minutes ago, JohnMo said:

Really makes no difference, we did our whole build from various private bank accounts.

 

Your not a business, so no need for a business account either.

 

All the tax man is interested in VAT receipts. So get in the habit of asking for them. Most companies don't seem to give them out unless asked for - B&Q for example. 

 

Shop around for good prices, prices will vary hugely.

I’ll probably transfer money into separate accounts just in case something goes wrong with a card for example, I’ll be 100% careful with vat receipts and run spreadsheets to keep on top of things

And research the (expletive deleted) out of people/companies. 

Company's House is a good start, see what the directors history is.

51 minutes ago, SteamyTea said:

And research the (expletive deleted) out of people/companies. 

Company's House is a good start, see what the directors history is.

Thanks mate,

My mates a very experienced builder who has a lot contacts in the trade and builders merchants, he’ll do all the civil and groundworks and deal with building control, he can get the best discounts for a most materials and recommend top notch tradesmen, I’ll do my research for all the internal fixtures and fittings so I hope it won’t run over budget, I am not letting architects dictate to me about the build process, he’s only there for the plans and planning application!

Definitely use credit cards as much as possible for a) protection, and b) points, cashback etc.

 

If you want a bank account *just* for the build, I'd suggest Monzo and paying the £7 charge for the "Perks" package giving you 3.75% instant access on your savings up to £1,000,000, up to 5 virtual debit cards as well as a physical debit card (all available to add to Apple Pay etc.) allowing you to categorise and split spending (and set limits), and multiple savings "pots" to separate funds for specific purposes whilst still keeping everything in one account. Other benefits too that you are bound to find useful. You only need to have £16,800 in savings for the extra 0.5% above the standard 3.25% to clear the £7 per month fee, so it sounds like you'd do that easily. I find it a great account, and if you know someone who already has a Monzo account, they can refer you and you'll each get a mystery gift of £10, £20, or £50.

We opened various bank accounts along the way (all personal) as good interest rates came along, limiting max amounts in each to £85k (for the protection)

Paid for most things using a credit card for the protection as others have said.

Once a month transfer monies as appropriate to pay credit cards off in full and maximise interest .

I found using swmbo’s bank account to be very effective.

2 hours ago, Pocster said:

I found using swmbo’s bank account to be very effective.

She says the same to me when we spend a couple of afternoon hours in a hotel.

So kind of you to pay.

31 minutes ago, SteamyTea said:

She says the same to me when we spend a couple of afternoon hours in a hotel.

So kind of you to pay.

Surprised you could type whilst tied up and gagged 

1 hour ago, Pocster said:

Surprised you could type whilst tied up and gagged 

Like a KitKat, I am good with my fingers.