Limited Company, Personal account and Agency

[keyser666]

Hi all, after some advice.

Had a limited company for over a year but not used it until this new contract which started in Jan. Will be doing my own accounts at the end of the year and not credit worthy for a business account.

I have been using my personal account for payment of invoices which my bank has been accepting. I have no issues with HMRC going through my personal account and keep receipts for all business expenses which are minimal and fall under IR35.

On Friday I had a monthly payment go in but my bank refused it and have sent it back to the agency same day payment after a discussion with them. I was in London at the time some 100 miles from home and had no money to get back expecting this to clear Friday morning as normal monthly pay.

I spoke to my agency who due to my situation advanced me £150 and said we will deal with it on Monday (payment hadn't cleared back at that time).

They say that I am not supposed to use my personal account and that I should have a business account, I informed them that this is not illegal even though me and the limited company are separate legal entities.

I have no money at present now as I had to use the £150 and have other financial personal commitments that were meant to be paid on Friday. My concern now is how do I get paid tomorrow? I need to be paid as have just managed to last 5 weeks since my last payment and really in the schtum.

Could I get it paid into a friends business account? Would that cause issues and they forward it to me? Could I get them to send the payment again with the payee having my name and company name in the same line? "A. Another / contractor Ltd"

I know some people frown on using personal accounts but I am happy doing it this way. Not sure what to do going forward but at least I have 4 weeks to sort before the next payment

[VectraMan]

What reason have your bank given for refusing to accept a payment to your account?

[northernladuk]

The fact you have no money in your personal account when there should be some for VAT and CT sounds very worrying. Sounds like you have a bloody awful setup there this is and will continue to be nothing but grief for you.

Get an accountant and start doing it properly. If I was in your position I would be stupidly diligent about my accounts if I am running a fudge like you are. I would say 2 months in and no VAT or CT put aside means you do NOT want HMRC sniffing about. Get an accountant and attempt to get out of this mess as soon as possible.

[keyser666]

What reason have your bank given for refusing to accept a payment to your account?

Because the payment was in the name of my limited company, yet they have accepted it before

[keyser666]

The fact you have no money in your personal account when there should be some for VAT and CT sounds very worrying. Sounds like you have a bloody awful setup there this is and will continue to be nothing but grief for you.

Get an accountant and start doing it properly. If I was in your position I would be stupidly diligent about my accounts if I am running a fudge like you are. I would say 2 months in and no VAT or CT put aside means you do NOT want HMRC sniffing about. Get an accountant and attempt to get out of this mess as soon as possible.

I should have put it in the OP but any payments that go in I give 25% to my sister to hold for me which will more than cover my CT. As I dont manage money too well she will not give it back until such time I submit. I am not VAT registered.

[keyser666]

Oh, I should say the first 3 payments recieved were weekly payments before I went onto monthly pay. Fridays pay was the result of a 5 week month

[northernladuk]

Banks can also charge for business transactions on a business account, they can't on a personal one so I don't think they will be too happy having you run your business through a personal service so you are going to have problems.

[keyser666]

Banks can also charge for business transactions on a business account, they can't on a personal one so I don't think they will be too happy having you run your business through a personal service so you are going to have problems.

Yes I understand that now. What do I need to do to get my payment tomorrow from the Agency is my main concern at present. I have budgeted my last weekly payment 6 weeks ago to last the last 5 weeks and am going to have difficulties getting to work, rent everything. I just need to sort tomorrow and then I will either looking at going back to an umbrella most likely.

[cojak]

If you have problems managing money running a Ltd may be too much for you at the moment so I would advise using an Umbrella service until your credit history improves.

Take a look at this, you aren't bankrupt but it gives good advice to those with poor credit.

Can I open a business bank account after bankruptcy?

[northernladuk]

Yes I understand that now. What do I need to do to get my payment tomorrow from the Agency is my main concern at present. I have budgeted my last weekly payment 6 weeks ago to last the last 5 weeks and am going to have difficulties getting to work, rent everything. I just need to sort tomorrow and then I will either looking at going back to an umbrella most likely.

I don't have a clue. I think you have been extremely lucky to find an agent that will pay it in to your personal account to be honest and they won't be doing it again if it causes them this much grief. They must be taking a big cut for this gig to put up with it IMO.

I presume your divi paperwork is all in order etc although not sure how it can be if you have spent your VAT and CT money.