Business Bank Account Issue

[catboy]

hello all,

i had to close my previous LTD as i used a formation company to form it and wasn't a signatory on the bank account from the beginning etc. etc.

i've used an umbrella company for my last 2 contracts and i don't like it as what happens to my money feels a bit opaque and contrived and i can't be bothered trying to check everything they do so i'd rather open another LTD company.

the problem is i have bad credit and can't open a business bank account (my current account bank doesn't offer them either (smile bank)).

i have a personal natwest account i rarely use and a guy here said that he spent the first 6 months using a personal account for his ltd company and that it is legal, the main thing is to just make sure that you keep it solely for the company transactions. anyone know if this is the case and if i could do that!?

thanks in advance.

lastly, how frequently can you give yourself dividends by law?

[Beefy198]

If you're not a sole trader you need a business bank account.

I bank with Smile, as you should know they are part of the Co-Operative Bank who do business banking. I'm sure you'd have to have pretty horrific credit to be prevented from opening a business bank account, but I could be wrong.

[Archangel]

There is no law regarding freqency of dividednds, if the company is trading in profit then a divvie can be paid daily, weekly, monthly, quarterly, yearly etc etc

When you contact banks, make it clear you do not want any credit, just a debit account, this may help.

Or make someone creditworty the director and you the only shareholder.

[dave20]

most company services don't have startup or finnishing fees, nor a minimum term. Us them until you have your company ready to go.

[Alan @ BroomeAffinity]

Or make someone creditworty the director and you the only shareholder.

Major shareholders are also subject to credit checks.

If you've got a personal account with a bank and its not got any bounced items on it, that should be your first port of call. Failing that your accountant might have connections who will open an account for you if he recommends you. I kno we've done that on occassion and got a knowck back reversed.

[catboy]

thanks for the replies. i've got a meeting this lunchtime with my secondary bank (natwest) with whom i have a no-frills account that has never been in debt, so i'll let you know how i get on... wish me luck, i don't want to use an umbrella any more!!!

[simes]

As for frequency of dividends, I think you can pay yourself divies as aften as you wish.

There maybe the caveat to this that if you pay monthly, then this could be a sign that you are treating it just as income and may (I say, may) raise this as a flag for inspection.

I try to pay them quarterly.

[BolshieBastard]

As for frequency of dividends, I think you can pay yourself divies as aften as you wish.

There maybe the caveat to this that if you pay monthly, then this could be a sign that you are treating it just as income and may (I say, may) raise this as a flag for inspection.

I try to pay them quarterly.

There is absolutely nothing in any legislation that says a divi can only be taken at certain times or if taken frequently equates to 'income.'

If you take divis frequently, say once a month or whatever period you want them, most accountants will draw up a dividend payment record for you to sign and date this quarterly.

HMRC could just as easily say a quarterly divi is income if they wanted.

[catboy]

i was refused a business bank account, does that mean that i have to work through an umbrella then?!

i really don't want to, i'd rather open up a ltd company again. what would happen if i used one of my personal accounts solely for the business monies and kept them seperate!? would i get in trouble?

help appreciated!!

[bledubd]

I think if you use your personal account for business then it should sorely be used for business in case you have to track items and all. The most important thing is that you do proper accounting.

Check with HMRC if they have a problem with that setup and check with an accountant if you have one. I will try and check with mine :-)

A problem you might encounter is when signing up or buying things in the name of the company. The supplier might insist on you using the company bank account.