Using Personal Bank Account for Ltd

[MeIsMark]

Hi - I have just rapidly opened a ltd. as I have a contract to begin in a couple of weeks. HOWEVER - it looks like it will take a while to get a company bank account (HSBC) - because it
seems that HSBC, LLoyds, etc. are inundated with new applications right now.

- Im aware that there may be pitfalls in using a personal account (such as getting paid to my personal account not a company named account).
But I can easy open a new personal account online to keep transactions seperate from my personal stuff (I think Halifax lets you open up to 16 !)

- My question is that if I were to use a personal account, then would HMRC / Companies House accept end of year accounts with bank statements
from a personal, not company, account ? (obviously everything would be itemized and receipted). Is this even legal ?
( My bank would not need to know because there would only ever be 2 or 3 transactions a month ).
Can I make PAYE payments, dividend payments, annual statements, etc. from a personal account ?

- I had a Ltd for about 3 years and closed it last year (DS01 etc.) but always had a (LLoyds) business bank account -
but right now their website says they are not even taking any new applications !

Thanks!

[eek]

Hi - I have just rapidly opened a ltd. as I have a contract to begin in a couple of weeks. HOWEVER - it looks like it will take a while to get a company bank account (HSBC) - because it
seems that HSBC, LLoyds, etc. are inundated with new applications right now.

- Im aware that there may be pitfalls in using a personal account (such as getting paid to my personal account not a company named account).
But I can easy open a new personal account online to keep transactions seperate from my personal stuff (I think Halifax lets you open up to 16 !)

- My question is that if I were to use a personal account, then would HMRC / Companies House accept end of year accounts with bank statements
from a personal, not company, account ? (obviously everything would be itemized and receipted). Is this even legal ?
( My bank would not need to know because there would only ever be 2 or 3 transactions a month ).
Can I make PAYE payments, dividend payments, annual statements, etc. from a personal account ?

- I had a Ltd for about 3 years and closed it last year (DS01 etc.) but always had a (LLoyds) business bank account -
but right now their website says they are not even taking any new applications !

Thanks!

Tide and Starling will set you up immediately. Natwest also have an electronic bank you can use.

[ladymuck]

Your issue is getting paid. IIRC agencies won't pay into a personal account for a Ltd Co, even if you're new and just starting up.

[wattaj]

Tide and Starling will set you up immediately. Natwest also have an electronic bank you can use.

^^ This.

Even as a temporary measure. Do not use your personal account. Mettle (the new offering from Natwest/RBS) will give you Freeagent for free.

[Ricky@IntouchAccounting]

Hi - I have just rapidly opened a ltd. as I have a contract to begin in a couple of weeks. HOWEVER - it looks like it will take a while to get a company bank account (HSBC) - because it
seems that HSBC, LLoyds, etc. are inundated with new applications right now.

- Im aware that there may be pitfalls in using a personal account (such as getting paid to my personal account not a company named account).
But I can easy open a new personal account online to keep transactions seperate from my personal stuff (I think Halifax lets you open up to 16 !)

- My question is that if I were to use a personal account, then would HMRC / Companies House accept end of year accounts with bank statements
from a personal, not company, account ? (obviously everything would be itemized and receipted). Is this even legal ?
( My bank would not need to know because there would only ever be 2 or 3 transactions a month ).
Can I make PAYE payments, dividend payments, annual statements, etc. from a personal account ?

- I had a Ltd for about 3 years and closed it last year (DS01 etc.) but always had a (LLoyds) business bank account -
but right now their website says they are not even taking any new applications !

Thanks!

You definitely need to avoid being paid into your personal account. As from an IR35 perspective you should have a business to business relationship so therefore paid into a business account. If you are set on banking with HSBC and do not want to open an account with one of the online banks, I would hold off invoicing your client until you have the business account set up.

[GhostofTarbera]

Hi - I have just rapidly opened a ltd. as I have a contract to begin in a couple of weeks. HOWEVER - it looks like it will take a while to get a company bank account (HSBC) - because it
seems that HSBC, LLoyds, etc. are inundated with new applications right now.

- Im aware that there may be pitfalls in using a personal account (such as getting paid to my personal account not a company named account).
But I can easy open a new personal account online to keep transactions seperate from my personal stuff (I think Halifax lets you open up to 16 !)

- My question is that if I were to use a personal account, then would HMRC / Companies House accept end of year accounts with bank statements
from a personal, not company, account ? (obviously everything would be itemized and receipted). Is this even legal ?
( My bank would not need to know because there would only ever be 2 or 3 transactions a month ).
Can I make PAYE payments, dividend payments, annual statements, etc. from a personal account ?

- I had a Ltd for about 3 years and closed it last year (DS01 etc.) but always had a (LLoyds) business bank account -
but right now their website says they are not even taking any new applications !

Thanks!

If your new contact is inside IR35 then it will be paid into your personal account anyway, it’s outside right? You have checked ?


Sent from my iPhone using Contractor UK Forum

[northernladuk]

Get yourself and accountant and let a professional guide you through this.

[Lance]

Tide and Starling will set you up immediately. Natwest also have an electronic bank you can use.

Mettle is the Natwest one. Quick, easy and comes with FreeAgent. Not FSCS though.

If your new contact is inside IR35 then it will be paid into your personal account anyway, it’s outside right? You have checked ? Contractor UK Forum

This is important. Find out ASAP.

Get yourself and accountant and let a professional guide you through this.

This is also important but not till you've checked the IR35 status.

[zonkkk]

There is no reason why you couldn't personally as a director of the company take payment from a client.

Just make sure to record it appropriately in your accountancy software. It will go directly into your director's loan account, and you would owe your company money. When you have a company bank account you pay it back.

Whether you can find a client/agency to pay the money directly to you as a director is another matter.

[eek]

There is no reason why you couldn't personally as a director of the company take payment from a client.

Just make sure to record it appropriately in your accountancy software. It will go directly into your director's loan account, and you would owe your company money. When you have a company bank account you pay it back.

Whether you can find a client/agency to pay the money directly to you as a director is another matter.

A client might (albeit it's highly unlikely), an agency won't because of 40 year old regulations....