Business bank account?

**r0bly0ns** · 18 October 2007, 15:05

If you are runing a Ltd company then the money that comes in belongs to the company, not you.

**Gonzo** · 18 October 2007, 15:06

Originally posted by PrivacyPolicy View Post

This may sound like a very silly question - apologies in advance.

Why do I need a business bank account?

Can I open a normal account?

I have a Lloyds Off shore account which I was proposing to use to credit my invoices. Does it matter which type of account it is, as long as I keep it only for my company affairs?

Thanks

You don't need a business bank account if you are a self employed sole trader.

hth

**malvolio** · 18 October 2007, 15:34

Originally posted by PrivacyPolicy View Post

This may sound like a very silly question - apologies in advance.

Why do I need a business bank account?

Can I open a normal account?

I have a Lloyds Off shore account which I was proposing to use to credit my invoices. Does it matter which type of account it is, as long as I keep it only for my company affairs?

Thanks

AFAIK (and I am no expert) it's about ownership and risk inside the banking systems. "Personal" accounts can't be opened by corporate entities because there is no personal accountability and vice versa. It's all about the legailities behind the banks having the right to chase for payment and the like.

However, if your offshore is legitimate and HMRC know about it under the offshore banking disclosure rules, which as a Lloyds one they probably already do, I can't see a problem. I should ask the bank themselves.

**DaveB** · 18 October 2007, 15:46

There is the question of how you are getting paid, or more specifically, who is getting paid. You under your own name, you under a trading name being self employed or your ltd co. If it is as a ltd co. then the account needs to be in the same name. You can't accept payments to your ltd as personal payments or the tax man gets very upset.

Business bank account?