Business Bank Account Refused Again Grrrrr

[Helios]

Ok. I tried Natwest they turned me down. Called to ask why, could not tell. Recently tried Abbey. They turned me down. Called to ask why, they were kind enough to tell me that I owed 1.9k from previous address to a different bank and it was a debt. It was 1.8k to hsbc but anyway i guess thats what they were on about.

Hence, I'm screwed. I had a car smash recently and need to return to contracting soon. I would hate to use an umbrella company again, considering I went through the trouble of setting up the ltd co. All I want is an account that I can take payments from agencies.

Considering I am not applying for an overdraft, why am I getting turned down? What possible loss could it be to a bank to give someone a business account, without an overdraft, just so i can take payments from agencies?

I heard there was a way to create my own account/bank legally. If anyone has any info or a better idea please share, as I am getting really cheesed of with the banks. Thanks in advance.

[MarillionFan]

I am surprised you are getting turned down to be honest, but hey ho.

A nice little get around for this is to get the agency to pay into your personal account.

Why will they do that you ask?

Agencies pay in via BACS. So you give them a sortcode and account no and thats what they pay into. The fact you tell them it's Dodgy Software LTD means that they are known the wiser.

Lesson here. Dont f-ck with the banks.

[Troll]

"Agencies pay in via BACS. So you give them a sortcode and account no and thats what they pay into. The fact you tell them it's Dodgy Software LTD means that they are known the wiser."

I must admit I have never thought of doing this... are you sure it works ?

[Diestl]

Im sure Natwest have a internet only business account that allows for people with less than perfect history.

[MarillionFan]

"I must admit I have never thought of doing this... are you sure it works ?"

Absolutely. Tried it a couple of times over the years. One to my personal one to my gfs account for short-term week long contracts.

I met a contractor who for over 3 years had been doing it to his personal account, plus charging VAT. Never paid any tax whatsoever!!! He was extremely nervous and always looking over his shoulder for the pull from the police though.

[AtW]

I think if you use your personal account for business then it exposes you to IR checking it in detail and it would be hard to draw the line between personal and business.

[VectraMan]

I think if you use your personal account for business then it exposes you to IR checking it in detail and it would be hard to draw the line between personal and business.

Probably a bad idea I agree, but in theory your account balance is just a number so it isn't too difficult to keep track of how much of the money is yours, and how much is the company's. If you were ever tempted to use the company's money for something personal, then you'd be in the deep doo doo.

I take it you're not planning on paying back HSBC? Maybe they'd convert the bad debt to an account with an overdraft if you have evidence (i.e. a contract) that there'll be money going in.

[AtW]

Its certainly not illegal to use your personal bank account for business purposes so long as you document it all, one should expect IR to be interested though. As for payment purposes account is account, its legal to use personal acccount for that and number is a number, doubt those who pay care in the slighest.

[MarillionFan]

Its only a number. It blurs a little with your own account, but if you were so minded you can do it extremely easily

I personally then transferred the money from my personal to my business account. In effect, if you wanted to do a few 'keep it quite contracts' the only way to get caught is a) To mess with the VAT , b) You get an audit where they go for your personal accounts, c) They audit the agency and then follow it up.

The xfer to my gfs account was just sublime.

[AtW]

The xfer to my gfs account was just sublime.

Sounds like your whole family is dodgy, I hope you will teach your child only good things, ie pay taxes on time and in full without using _any_ tax minimsation schemes?