Paying Company Money into a Personal Account

[northernladuk]

I think this is one of those things where its entirely at the agency's discretion. If they do not want to pay into your nominated bank account because its not in the company name I'm not sure what else you can do other than keep trying to convince them.

Could do a credit check on the agency. If it's in no danger of going bust then there won't be any problems the holding on to the money before you get your schizzle sorted out. Not ideal granted but an option none the less.

[TheCyclingProgrammer]

I can see where you're coming from but as I'm director and have nominated that account in writing surely they can't be liable?

I think this is one of those things where its entirely at the agency's discretion. If they do not want to pay into your nominated bank account because its not in the company name I'm not sure what else you can do other than keep trying to convince them.

[northernladuk]

Plenty of other threads discussing this in detail.. This seems like a good one..

http://forums.contractoruk.com/accou...k-account.html

All the threads can be found below..

https://www.google.co.uk/search?q=co...msg=NCSR&noj=1

Should be something in their that answers your questions if this thread hasn't already...

Just be very clear in your mind the difference between you being a director of a company with a company bank account and you being a person with a personal bank account. Two very different and unconnected things. Get that right and may other areas will become easier to understand in the future.

[D3K]

My bank account wasn't in place for my first contract and my first week's pay went into my personal bank account with no problem. There was no concern about this from either the agency or my accountant.

Thanks for the response, and that's good to know. I'm waiting on a further response from my accountant and then I think I'm going to have to send an angry email or two.

So fed up with my recruiter. This is on the back of another discovery which was they told me that the Client refused to deal with Umbrella companies as I wanted to go Umbrella until my ltd was set up. I've since found out the newest contractor at the office is on Umbrella while setting up his limited company.

[JRCT]

I can see where you're coming from but as I'm director and have nominated that account in writing surely they can't be liable?

My bank account wasn't in place for my first contract and my first week's pay went into my personal bank account with no problem. There was no concern about this from either the agency or my accountant.

[D3K]

However I can see the agency's point of view. I'm not sure its illegal per se, but the agencies liability is to YourCo, not you. If they paid it to your personal bank account then how can they say they've settled their liability to YourCo as it hasn't received the money? I think you're going to have to chase up your bank unfortunately.

I can see where you're coming from but as I'm director and have nominated that account in writing surely they can't be liable?

[TheCyclingProgrammer]

From your point of view, even though its not ideal, having it paid into your personal account and treated as a director's loan shouldn't be an issue so long as its below £10k.

However I can see the agency's point of view. I'm not sure its illegal per se, but the agencies liability is to YourCo, not you. If they paid it to your personal bank account then how can they say they've settled their liability to YourCo as it hasn't received the money? I think you're going to have to chase up your bank unfortunately.

[Kenny@MyAccountantFriend]

The contract with the agency will be in your company name and as such any payments should be made into an account in the name of the company.

That's not to say that some agencies would still pay into a personal account as I have seen it happen in the past.

[D3K]

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.