Do I need business bank account?

In the UK, you really need to go ahead and set up the account. There are a lot of head hunters that are looking for people "taking advantage," and simply by putting yourself in a category with all of the people who typically do, you're a target. Keep good records and report it to the gov't at the end of the year. I'm not sure what you will pay in terms of taxes on this, however, as that's a whole other issue.

In the US (to answer the same question for others) you receive a 1099K at the beginning of the following tax year if you have made $20,000 in sales AND have 200 different sales purchases. If you didn't, you are still required to report on your Schedule C what you made, but are not liable for any taxes on that income. In the US - you don't need to have a business account. I don't really recommend it either because S-corps and LLCs all pay 30% now instead of 16% thanks to the hungry congress that currently resides.

Well, you are supposed to declare all earnings as personal income, if that is what you are talking about. Depends how you structure yourself and your income. You either pay company tax on earnings if your a company or just add the income to your personal income and attract tax at the appropriate threshold level, (if you are no a company). I doubt most people earning dollars and cents claim anything though. Once you start making some income, you should get advice from an accountant in the UK. You might find you make better money by claiming the business running as a loss and offsetting some of your other income, along with claim some expenses such as your internet and the room in your house that you use for the business. For example if you use 20% of your house floor space for the computer business for 50% of the time. You can claim 10% of your overall mortgage or rental as business expense. This is the rule in Australia, you need to get advice there, just saying it to illustrate the point that there may be other benefits to owning a business.

The general rule is keeping one account for personal and
other for business. Regardless the way you do biz.

Meharis

I live in London and from day 1 I have personal and business account. Better you do the same as it will be easier for you to manager. Also for tax and other official reasons, it is a good idea to be doing it this way.

The only time I know of when you need a business account for your internet business is when you are using a credit card and you want to put those expenses on when you do your taxes. You can not use that credit card for personal stuff though. That is the only time when you need to separate the 2.

It actually depends on your eranings and taxes in your country. Sure, it won't hurt to open a company, it might be beneficial, if you do have a great income!

If you are serious about your income, than you should go ahead and create a company right away.

as a starter, you can always use your personal bank account first

Once you start earning, I'd open a company. There are a lot of tax benefits for doing that. Not sure about in the UK, you'd have to check with an accountant there.