Do any banks offer cards to businesses with no annual fee?

[Clare@InTouch]

So you pay your company VAT and company tax from a personal account? That sounds dodgy. It means your company accounts don't actually hold enough funds to pay tax, which I didn't think was allowable.

Also creating a directors' loan account I imagine. It's likely that the benefit in kind liability on such a loan, assuming it's over £5,000, will cancel out any interest received on the deposit account anyway.

[Wanderer]

So you pay your company VAT and company tax from a personal account? That sounds dodgy. It means your company accounts don't actually hold enough funds to pay tax, which I didn't think was allowable.

I'm not certain that he meant a personal deposit account. Perhaps it's a company one?

As others have said, technically you can't take money out of the company except as expenses, salary, dividends or a directors loan but I know people who put all their companies money into their personal account and only transfer it back when the company needs it.

I suppose HMRC could treat this as a director's loan and you would have to pay interest - if you ever got investigated to that level.

[mat8iou]

I'm not certain that he meant a personal deposit account. Perhaps it's a company one?

As others have said, technically you can't take money out of the company except as expenses, salary, dividends or a directors loan but I know people who put all their companies money into their personal account and only transfer it back when the company needs it.

I suppose HMRC could treat this as a director's loan and you would have to pay interest - if you ever got investigated to that level.

Correct - apologies for causing confusion - it is a business deposit account registered in the business name - with a different bank (Alliance & Leicester - although they're all the same bank in reality now).