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Bank account

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    Bank account

    Does a LtdCo need a business bank account or is a bank account for sole use of the business OK?

    Basically I'd like to avoid the prohibitive costs of bank's business account charges.

    #2
    You don't need a business account but the bank will take a dim view of you running a business through a personal account and will close it down.

    What punitive charges, BTW? Mine run at around £6 a month and are covered by the interest on the current account. Others are even cheaper.
    Blog? What blog...?

    Comment


      #3
      Yep, do a bit of research first - most banks are gagging for new business accounts and will won't charge you for 12 months.
      "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
      - Voltaire/Benjamin Franklin/Anne Frank...

      Comment


        #4
        Abbey does not charge at all unless you exceed the limit on number of transactions.
        bloggoth

        If everything isn't black and white, I say, 'Why the hell not?'
        John Wayne (My guru, not to be confused with my beloved prophet Jeremy Clarkson)

        Comment


          #5
          You don't have to pay to get a business bank account Flinty. As I've already explained to you, you can get a free Cater Allen account through the CUK site (or your accountant).

          And it pays good interest.

          Comment


            #6
            Originally posted by malvolio
            You don't need a business account but the bank will take a dim view of you running a business through a personal account and will close it down.

            What punitive charges, BTW? Mine run at around £6 a month and are covered by the interest on the current account. Others are even cheaper.
            Most agents won't pay into a 'private account', also the HMRC takes a dim view of interest on Company Money being paid into an individuals private account, how do you reconcile the tax paid on interest since the bank with withhold it at source.

            Unless you are a sole trader its a no-no. (i.e. not limited).

            Are you doing this so you can use your companies balance to offset a mortgage by any chance?

            Comment


              #7
              Abbey

              Thanks for the advice guys... the only reason I enquired is that I saw the offer for the Cater Allen account, but as I have already started my contract and haven't been paid yet, I was looking for a quick way to set up the business without having to send off all the company info paperwork with the application so that I could get my first payment quicker.

              Not trying to offset anything, don't even have an offset mortgage at the moment (I'm not that dodgy!).

              I have now found the Abbey account, thanks xoggoth, and am going to send off a application for an account there, although may have to go for umbrella in the short term to improve my personal cashflow in the interim period.

              Comment


                #8
                Cater Allen and others

                Originally posted by planetit
                You don't have to pay to get a business bank account Flinty. As I've already explained to you, you can get a free Cater Allen account through the CUK site (or your accountant).

                And it pays good interest.
                I keep seeing Cater Allen everywhere: A few accountancies that i talked to suggested opening an account with them for free. Do you know if these guys (Cater Allen) have any advantages over other banks like Barclays/Nationwide etc that provide business account services as well.

                Many thanks

                Comment


                  #9
                  I don’t know. If Barclays/Nationwide etc can offer you free banking (permanently, not just for an introductory period) AND pay some interest, then they should be just as good. I’ve looked around, and never found a better offer (though one or two are about the same). The only down side with Cater Allen is no internet banking, but the call centre is very good.

                  My main point is that you should not pay for business banking if you are a regular contractor. In fact, they should be paying you.

                  Comment


                    #10
                    The only down side with Cater Allen is no internet banking, but the call centre is very good.
                    That's one of the main reasons I will continue to bank with Cater Allen. The phone is always answered within a couple of rings by an on-shore human being. No recorded messages, no IVRs, no hold musak, just a bod with a recognisable accent who picks up the phone and says "hello, what can I do for you today?"

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