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How to Use Business Bank Accounts to Manage VAT, CIS & Tax

  • Writer: Laura Seeley
    Laura Seeley
  • Sep 9
  • 2 min read

Updated: Oct 10


How to Use Business Bank Accounts & Money Pots to Stay Ahead of Tax


Managing cash flow and staying on top of HMRC liabilities is one of the biggest challenges for small construction businesses. The good news? With modern business bank accounts and a simple money pot system, you can stay in control and avoid nasty surprises.


Why choose a modern business bank account?


  • App-based business banks like Starling Bank and Monzo are game changers for small businesses.


  • Quick and easy setup (often within minutes).


  • Direct integration with Xero for live transaction updates.


  • No monthly fees with Starling, and only a small fee with Monzo.


  • User-friendly apps that keep you in control of your money.


  • The power of “money pots”


Both Starling and Monzo let you create separate pots (or spaces) within your account. Think of them as labelled envelopes for your money, giving you clarity on what’s really yours to spend.


We recommend three essential pots:


  • VAT Pot – set aside VAT from every payment you receive.


  • Payroll & CIS Pot – keep wages and CIS deductions ready for HMRC.


  • Tax Pot – build up funds for Corporation Tax or personal tax bills.


How this helps you stay ahead


At Your Accounting Club, we keep your Xero records up to date and regularly show you your upcoming VAT, CIS, and tax liabilities. By using pots alongside our updates, you’ll never be caught short — the money will always be waiting when HMRC deadlines arrive.


Getting started in 4 steps


  1. Open a Starling or Monzo business account.


  2. Create your VAT, Payroll/CIS, and Tax pots.


  3. Integrate your bank with Xero (we’ll guide you through this).


  4. Start moving money into the pots as soon as you get paid.


✅ In summary: Money pots turn HMRC bills from stressful surprises into manageable, planned payments. Combine them with Osborne Accounting’s ongoing support, and you’ll always know where you stand.


👉 Want help setting up your bank feed or money pots? Contact Osborne Accounting today


 
 
 

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