Business bank account, rules?

[jonson]

Hi

I am a little worried about my business bank account. Currently I am doing a lot of work and receiving money from invoices etc. It is an RBS account, I have been with them 12 years with no problems, and recently opened an ISA account with them without problems. I hope this will continue.

I recently tried to open a Barclays basic account, for people who are bankrupted etc, and got refused. They give no reason but I suspect a default on my Equifax file (even though this is supposed to be an account for exactly people with bad credit)..or maybe my past address is on a fraud list, even though it has nothing to do with me..some dodgy types used to live there before me

Anyway, my wife who is on the board and a company secretary has a Barclays account..in the case of an emergency, would her account be able to receive invoice payments from clients etc on behalf of the business? what are the rules regarding where the payments must go in a business?

I just need a backup option ready for safety

[kevpuk]

Not sure I understand what you are after? Surely if you have a perfectly functioning Business account, there is no need for a different one?
As for using your wife's account, you will no doubt struggle to get invoice payments (etc.) made to any account which is not in YourCo's name.

[jonson]

Not sure I understand what you are after? Surely if you have a perfectly functioning Business account, there is no need for a different one?
As for using your wife's account, you will no doubt struggle to get invoice payments (etc.) made to any account which is not in YourCo's name.

advice from someone with experience please? actually you can have an account not in the companies name, and take payments, I did this in my first year.

I want a backup account just incase..alright with you?

[TheFaQQer]

would her account be able to receive invoice payments from clients etc on behalf of the business?

You already know the answer to the question:

actually you can have an account not in the companies name, and take payments, I did this in my first year.

[alluvial]

Not sure I understand what you are after? Surely if you have a perfectly functioning Business account, there is no need for a different one?
As for using your wife's account, you will no doubt struggle to get invoice payments (etc.) made to any account which is not in YourCo's name.

WKS +1

advice from someone with experience please? actually you can have an account not in the companies name, and take payments, I did this in my first year.

I want a backup account just incase..alright with you?

Don't be so touchy.

Why would you need a just in case account that is going to just sit there unused and unloved? Are you worried RBS is going to go under?

[craig1]

If your company isn't actively messing around the bank then they'll not close it short of a court order. You're just too small fry for a bank to bother with culling unless you're an active pain. If you're a limited company of any variety then your business bank account has nothing to do with you personally and you could be the most objectionable private customer they've ever had and it won't impact your business account.

On your direct question though, yes you obviously can do this but you shouldn't. I've only met one agency who insisted on proof that my bank account was a company one. The problem you have though is that you're then mixing business and personal financial affairs and any future company HMRC audit will not separate the two. You'd better get in the habit of keeping receipts for everything for 7 years (6 years legal plus the one extra to cover the accounts filing lag) that you spend out of that personal bank account, regardless of how small or trivial, including receipts for things you purchase with any cash you withdraw from the account. It's a massive red flag for HMRC's audit staff.

It's seriously not worth the effort and I'd strongly recommend that you just don't do it regardless of how tempting it is. The negative consequences far outweigh any positives you may get from this.

[kevpuk]

I want a backup account just incase..alright with you?

[Goatfell]

WKS +1

Are you worried RBS is going to go under?

Considering
1:
RBS won't exist in England and Wales thanks to the EU terms for the bailout
2:
read MPs thread on how banks can drop the ball when they split.

I'd say that having a back up business account showed considerable forethought. Should all businesses not have a disaster recovery plan?

[northernladuk]

Three threads all say much the same. You can in the very short term but you shouldn't as it is poor practice.

http://forums.contractoruk.com/accou...vat-yet-2.html

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

http://forums.contractoruk.com/accou...d-company.html

[alluvial]

Without considering the reasons why, I'd be concerned about determining why you were refused. If you are sure your are squeaky clean then you need to find out what it is that got you declined.

If you do have a poor record them I'd be looking into alternatives to Barclays. Do a bit of research, there are ways of getting a business account if you have a poor record. Someone I know who has an extremely poor record was able to open a santander business account with no trouble.