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thelurker
16th November 2009, 16:32
I need to pay my accountant for year end tax but I closed my business account as they started charging!

Can I (or is it recommended) that I pay this through my personal account or open up a new accoount?

Thanks

DiscoStu
16th November 2009, 16:34
I need to pay my accountant for year end tax but I closed my business account as they started charging!

Can I (or is it recommended) that I pay this through my personal account or open up a new accoount?

Thanks

Why would you close your business account without a new one in place? :rolleyes:

You thought about asking your accountant...?

Sally BFCA
16th November 2009, 16:44
Is your company still trading, or intending to? If so it will need a company bank account.

Was there any money transferred to your personal account when you closed the company account....meaning you owe the company?
Technically, your company is a legal entity in it's own right and must have it's own bank account.

We have not come across this situation before and it would be good to see what others think...

I wonder, if it was a final tax payment....would HMRC care where the money has come from so long as it was paid?
I bet they wouldn't, but the Companies Act probably would.

I would advise that you open a new account. Cater Allen offer free banking!

DimPrawn
16th November 2009, 16:49
Actually I had the opposite problem in the past.

Had ltd and company bank account.

Closed ltd and company bank account, HMR&C gave the nod and all was closed.

Some months later they sent a cheque to me in the ltd companies name as a tax refund.

Ended up throwing the cheque in the bin. Couldn't be bothered with the hassle.

thelurker
16th November 2009, 16:58
Plan is to a close limted company down as taken a salaried job.

The account had been inactive since August, so account did advise to close company amd nove cash to personal account.

The first year accounts are done, and final accounts are prepared as we speak.

So if I was to pay using personal account, what would the implications be?

Sally BFCA
16th November 2009, 17:16
So if I was to pay using personal account, what would the implications be?

The honest answer is, I don't know.

However if the accounts are all correct and the money that you have transferred to your personal account is accounted for correctly, in as much as distributed by a dividend or capital distribution under ESC C16, then I don't think HMRC would object.

Maybe it would be wise to phone your tax office and ask (all counts to due diligence as the call will be logged)

Paddy
16th November 2009, 17:17
Technically, your company is a legal entity in it's own right and must have it's own bank account.



Can you point me to the legislation or rules that say this or is this just opinion? Reason being I do have a claim against a limited company that banks on behalf of another “unrelated” company. So far the IR has said there is nothing wrong with them doing that.

Clippy
16th November 2009, 17:44
The simple answer: yes of course you can pay it off from your personal account. You can spend your money on whatever you like.

No implications, unless you want to get yourself in a tizz about paying it out of personal taxed income when with a bit more foresight you could have paid it out of company turnover. But the hassle of unraveling that won't be worth the extra tax.

To be fair, it sounds like the OP's accountant gave poor advice:


The account had been inactive since August, so account did advise to close company amd nove cash to personal account.

suityou01
16th November 2009, 17:45
I need to pay my accountant for year end tax but I closed my business account as they started charging!

Can I (or is it recommended) that I pay this through my personal account or open up a new accoount?

Thanks

Pay the accountant. Trouser the rest.

HTH :D

thunderlizard
16th November 2009, 17:47
ah...clippy has quoted a post that I just deleted! I misread the question and thought it was an accountant's bill, not a tax bill (either way it's a sign you've got a shoddy accountant). Although I think my point still stands, if it's a big company tax bill, the personal tax implication on top might make it worth unravelling.

Sally BFCA
16th November 2009, 17:54
Can you point me to the legislation or rules that say this or is this just opinion? Reason being I do have a claim against a limited company that banks on behalf of another “unrelated” company. So far the IR has said there is nothing wrong with them doing that.

I can't find it written in the Companies Act 2006, or anywhere else...if anyone can then it would be useful to know.

If you used a personal account for a Ltd co then their would be no limited liability on the personal account as there would be on a company account.

For HMRC purposes, a co account is transparent and everything separate.

Companies that are part of a group often use one account for all.

Clippy
16th November 2009, 17:59
ah...clippy has quoted a post that I just deleted! I misread the question and thought it was an accountant's bill, not a tax bill (either way it's a sign you've got a shoddy accountant). Although I think my point still stands, if it's a big company tax bill, the personal tax implication on top might make it worth unravelling.

Soz. :emb
(Don't you hate it when that happens?!?)

Paddy
16th November 2009, 18:02
I can't find it written in the Companies Act 2006, or anywhere else...if anyone can then it would be useful to know.

If you used a personal account for a Ltd co then their would be no limited liability on the personal account as there would be on a company account.

For HMRC purposes, a co account is transparent and everything separate.

Companies that are part of a group often use one account for all.

Thanks for your reply, the company in my question is not part of a group. Companies House is aware of the situation but I will get back to them to see if they are in breach of company regulations. Thanks again.

thunderlizard
16th November 2009, 19:06
Soz. :emb
(Don't you hate it when that happens?!?)


(mutters as police lead him away):And I would have gotten away with it too if it hadn't been for you meddling teenagers...

suityou01
16th November 2009, 20:42
Soz. :emb
(Don't you hate it when that happens?!?)

I hate it more when people abbreviate the word sorry to that horrible word. :spank:

DO NOT EVEN THINK IT CLIPPY