Paying Company Money into a Personal Account

[malvolio]

Might have to look at this. Whole thing is an absolute nightmare. After initially telling me it'd take 3-5 working days for a response, Lloyds has now informed me it will actually me 14 working days. Being easter next week that means I'm unlikely to get a response for another fortnight. If they then turn down the proof of address I've provided (which wouldn't surprise me frankly, despite being a stamped bank statement which they've listed as acceptable) then I'm back at square 1.

I'm running seriously low on funds and while I can transfer more from Australia, the exchange rate is rubbish at the moment and I really don't want to take this path when I'm owed so much in pounds.

Someone's mentioned previously that HSBC can open a bank account on the spot. Does anyone known of any banks that do the same? Looking at investigating a few options.

I've banked the company with HSBC from the start. Never had any problems, does what it says on the tin: took me less than an hour to get the initial account opened (a long time ago though...) and stuff like online and credit cards within a week or two.. Get an appointment with one of their business account managers and I suspect they'll sort you out very quickly.

[D3K]

Get her to transfer 30% of the company to you. Open bank account. You transfer 30% of the company back to her.

Might have to look at this. Whole thing is an absolute nightmare. After initially telling me it'd take 3-5 working days for a response, Lloyds has now informed me it will actually me 14 working days. Being easter next week that means I'm unlikely to get a response for another fortnight. If they then turn down the proof of address I've provided (which wouldn't surprise me frankly, despite being a stamped bank statement which they've listed as acceptable) then I'm back at square 1.

I'm running seriously low on funds and while I can transfer more from Australia, the exchange rate is rubbish at the moment and I really don't want to take this path when I'm owed so much in pounds.

Someone's mentioned previously that HSBC can open a bank account on the spot. Does anyone known of any banks that do the same? Looking at investigating a few options.

[TheFaQQer]

Yeah, she's a director as well but according to the banks they need ID/proof of address of anyone who holds a 25% or more stake. I didn't understand it either. The unwillingness of the banks to take my money is confounding me somewhat.

Get her to transfer 30% of the company to you. Open bank account. You transfer 30% of the company back to her.

[D3K]

Decided not to push it with the agency, as I've finally managed to get proof of address out of my personal bank on the third attempt.

OK, confused now. Being a shareholder does not mean you have any responsibility for company finances, that is strictly for Directors (and Co Secs if you have one). So there is no reason for her to be involved with the company bank account.

And income shifting is between "connected persons" where you retain control of the income. Partners don't count, especially if they use their own bank account.

Yeah, she's a director as well but according to the banks they need ID/proof of address of anyone who holds a 25% or more stake. I didn't understand it either. The unwillingness of the banks to take my money is confounding me somewhat.

[SueEllen]

Anyone done this ?
If so any opinions/views on the process ?

cardone also apparently do a similar instant business account..
https://www.cardonebanking.com/busin...k-account.html
(they claim "Complete your application online in less than 10 minutes with no branch visits required. Most accounts opened same day.")

Why don't you just go to a normal bank in person with the relevant ID? It will be cheaper.

[SunnyInHades]

You can open a business account Ltd Co immediately at
Cashplus Prepaid Credit Cards, Prepaid MasterCard & Debit Cards UK it costs £40 no other charges for transfers etc

Anyone done this ?
If so any opinions/views on the process ?

cardone also apparently do a similar instant business account..
https://www.cardonebanking.com/busin...k-account.html
(they claim "Complete your application online in less than 10 minutes with no branch visits required. Most accounts opened same day.")

[Scruff]

Absolute rubbish. Two people running a business together can be shareholders without any implications. As Mal says, "income shifting" (ie settlements legislation) usually only applies when spouses (unless the exemption is applicable), minor children or trusts are involved. Not between partners or other family members, or friends and that's if there's even a settlement in the first place, which there almost certainly wouldn't be if the shareholders are both actually actively involved in the business.

If settlements legislation applied as you seem to think it does, how would families or friends be able to start a business together and share the profits without being caught?

Think about what you just said in context please?

OP, don't listen to me, since I am just an old fool. Ask your Accountant instead.

[TheCyclingProgrammer]

Nope.

She needs to be your lawfully wedded wife. No such thing as Common Law Wife in the UK. Fire your Accountant and get her off your Share Register.

Absolute rubbish. Two people running a business together can be shareholders without any implications. As Mal says, "income shifting" (ie settlements legislation) usually only applies when spouses (unless the exemption is applicable), minor children or trusts are involved. Not between partners or other family members, or friends and that's if there's even a settlement in the first place, which there almost certainly wouldn't be if the shareholders are both actually actively involved in the business.

If settlements legislation applied as you seem to think it does, how would families or friends be able to start a business together and share the profits without being caught?

[Paddy]

As the title says, can it be done?

My problem is that I've been at work for 6 weeks without being paid, with money being held by the agency. This is due to after being jerked around by TSB for a few weeks I discovered I don't have sufficient proof of address to meet their requirements and so have had to restart the process with another bank.

I had the idea to pay into a personal account (it's empty at the moment so money would be completely separate) and write it up as a loan from the company for book keeping purposes.

My agency is refusing to do so saying its illegal to pay into a personal account. As a director of the company, I would of thought I'd have final word on how the money is to be paid and it shouldn't be up to them.

Further, (and this is probably a bit of a stretch) I note that I did not "opt-out" and so under the regulations, I would think they're acting illegally by withholding funds.

Can anyone offer any advice? Especially if anyone's been in the same situation.

You can open a business account Ltd Co immediately at
Cashplus Prepaid Credit Cards, Prepaid MasterCard & Debit Cards UK it costs £40 no other charges for transfers etc

[BolshieBastard]

I dont think paying the money into a personal account as a director's loan would wash with the agency. As far as they're concerned, their responsibility is to pay the ltd co they are contracted with and not act as an intermediary and pay the directors (and rightly so IMHO).

There may also be questions about them acting as a managed service company if they did this.

As the director of your limited, its your responsibility to organise your co including ensuring the banking facilities are set up.