Coffee Company

I have been working as self employed and have started my own ltd company do i have to get a business bank account to get paid

Normally yes but you may decide to use a general account.

Using a business account makes everything and your company seem more proffessional really.

7 Responses

1. yelXpression L Says:
   February 25th, 2010 at 5:48 pm

   Normally yes but you may decide to use a general account.

   Using a business account makes everything and your company seem more proffessional really.
   References :

2. CheekyBear Says:
   February 25th, 2010 at 6:29 pm

   I think you need to get some business advice pretty quick if you really don’t know. Its a pretty basic question

   However…. if you have a limited company any cheques you receive MUST be paid into a bank account in the limited company name…you CANNOT pay cheques in that are payable to you personally(even if you are the sole director).

   I would strongly recommend you talk to the Small Business Manager at your bank. They will give you all the info you need
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3. davetumalty Says:
   February 25th, 2010 at 7:16 pm

   Hi. I am a company director there is no legal requirement to have a business bank account untill you register for VAT

   Customs and Excise ask for your bank details when you register and will only accept accounts in the name of your businesses.

   Not having a business account will make you look less professional and if your customers are other businesses many will not do business with you until you get an account.

   When I started in business 11 years ago my credit rating made it imposssible for me to get a business account through normal means. I used this company http://www.everything-financial.co.uk/da/14351 who guarantee to get you a bank account (they do charge) now 11 years later I am the director of a holding company and 6 subsiduary companies all of which have bank accounts acquired in the normal way.

   Although they do charge for the guaranteed account after a year or so you can prove your worthy of an account from the normal high street banks.
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4. mark_harrison_uk2 Says:
   February 25th, 2010 at 7:26 pm

   Dave had provided an excellent answer.

   The only thing I would add is, depending on your customers, you may find that some will only make payment in the name of your limited company, and your (personal) bank won’t allow your account to receive a cheque in the name of "Big Pig ltd." (or whatever your company is actually called.)

   I found that

   1: for Internet sales, I just put everything through Paypal, and it could pay out to any bank account I chose.

   2: for sales to large companies, they inevitably paid by bank transfer, and just wanted the account number and sort code (so again, fine.)

   3: it was smaller companies that gave me the grief. I have one that still insists on paying by cheque, and that cheque is always made out in the name of my own company

   Be especially wary, however, if you do a job that MIGHT be caught by IR 35. (If you do such a job, you’ll know what it is – if you don’t recognise the term, chances are it doesn’t affect you). If you do, then HMRC may use the fact that you’re using a personal bank account as a piece of "evidence" that you’re subject to that set of rules.

   When I set up my first company, we used a private bank account (my co-founders.)

   When I set up my second company, I just got a "business account with free banking for 2 years" from my personal bank. (I bank with First Direct so went to HSBC.)

   The tip I’d give if you ARE setting up a business account is to have it with the same bank as your personal bank… because it’s then likely you’ll be able to make INSTANT transfers between the two, rather than "3 days to clear" transfers.
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5. Jo W Says:
   February 25th, 2010 at 7:41 pm

   In the eyes of the law(!), a limited company is a ‘persona’ – ie it is seen as a ‘person’ in its own right and so is quite distinct from its shareholders and directors.

   Getting a business account set up is no big deal and many banks give free business banking to small businesses for most types of transaction. Have a look at what Abbey offers (other people may have other recommendations):

   http://www.anbusiness.com/
   References :

6. roaming_tigerr_uk Says:
   February 25th, 2010 at 8:26 pm

   Whilst you can operate with a private account it wont be long before your bank works that out and insists you set up a business account. I would also STRONGLY advise against mixing money with your personal finances since that will be a nightmare to unravel later on. Most high street banks will give 12/18 months free banking so why not just get it sorted and save the hassle.
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7. emmasnw Says:
   February 25th, 2010 at 8:58 pm

   Yes, you should open a separate account. Use this basic checklist to make sure all the important steps are taken before you launch your new venture. This business checklist will make sure that you cross all your t’s and dot all your i’s before your business launch.

   Steps to Starting a Business -
   http://www.developer-resource.com/starting-a-business.htm

   Other sites you might find helpful are:
   SBA – http://www.sba.gov/
   SCORE – http://www.score.org
   Small Business Resource – http://www.small-business-software.net

   Goodluck!
   References :

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