Is it illegal to have agency pay into personal account for LTD company

[mark271]

Hello all,

I have been trying to set up a business bank account but have been turned down due to past credit problems. I have applied a few places but no go. I have a personal account that has not been used for 13 years and have reactivated that account and was going to use this untill I can get a business account. I asked the agency today if they would pay me to this accout and they replied that they cant as its illegal. Is this true I spoke to SJD about this and they said it would be fine to use the account in the sort turn so who is right.

Mark

[Bumfluff]

Hello all,

I have been trying to set up a business bank account but have been turned down due to past credit problems. I have applied a few places but no go. I have a personal account that has not been used for 13 years and have reactivated that account and was going to use this untill I can get a business account. I asked the agency today if they would pay me to this accout and they replied that they cant as its illegal. Is this true I spoke to SJD about this and they said it would be fine to use the account in the sort turn so who is right.

Mark

I'm pretty sure that no agency will pay into a personal account got to be a business account, its the company money not yours. Cant you just hold back submitting your invoices until you get something sorted ? I'm sure otthers have posted with same question I think some banks might deal with you see > http://forums.contractoruk.com/accou...account+credit, failing that you will have to use a brolly company, Parasol etc

[moorfield]

Hello all,

I asked the agency today if they would pay me to this accout and they replied that they cant as its illegal. Is this true I spoke to SJD about this and they said it would be fine to use the account in the sort turn so who is right.

Mark

I think the agency are right. And I'm very surprised SJD said that to you - sounds a little unprofessional on their part.

[fzbucks]

Dont think that there is any law that says the bank account has to be a company bank account - for the first six months of my contracting time I used an online web saver account just to keep things seperate from my personal account.

[Cowboy Bob]

As long as the company money is kept separate from your normal personal money everything is fine. The only difference between a business account and a personal one is the services you get with it - things like a BACS facility.

The agency are wrong and SJD are right.

[FiveTimes]

How about instead of getting the money paid into a personal account, get them to pay you with a cheque made out to the business. That way when you get the business account all set up just pay it in.

[VectraMan]

As long as the company money is kept separate from your normal personal money everything is fine. The only difference between a business account and a personal one is the services you get with it - things like a BACS facility.

The agency are wrong and SJD are right.

Personal accounts have tax on the interest, business accounts don't.

I agree though - nothing wrong with this as long as you account properly for what's the company's money and what's your money. And if you do get interest, then the proportion of the interest earned from the company's money belongs to the company too, so it gets a bit tricky.

[Sockpuppet]

Your forgetting that you could claim payment was not made to the company and to you instead so ask for payment again.

Would Dixons let you buy a TV by paying into the account of a sales manager.

[tim123]

Your forgetting that you could claim payment was not made to the company and to you instead so ask for payment again.

Would Dixons let you buy a TV by paying into the account of a sales manager.

Yep, This is more of less what I was going to say.

Paying it into your personal account will not discharge the debt and any agency that does this is asking for trouble.

tim

[[email protected]]

Yep, This is more of less what I was going to say.

Paying it into your personal account will not discharge the debt and any agency that does this is asking for trouble.

tim

Absolutely, the contract is between the agency/end client, and your company. If you don't follow the contractual relationships in force, you are asking for trouble.