Cater Allen Questions

[VectraMan]

Can't say I've ever had any kind of problem with Barclays. If you're with them now, I would stick with them. It'll make it easier.

I thought the only reason people used CA is the accountants getting a kick back for recommending them? Certainly my (well known contractor) accountant pushed CA when I started contracting in 2005, but at the time CA had no online banking, so it wasn't a very difficult decision to ignore their "advice". Barclays were always ahead of the curve on online banking (I used the dial up service before internet banking); when I used Lloyds a couple of years ago it looked like something that was designed for Netscape 1.

[philip@wellwoodhoyle]

I thought the only reason people used CA is the accountants getting a kick back for recommending them?

Many more enlightened accountants have arranged for their "kick back", more properly known as introducer's commission, to be added to the client's account in the form of extra interest, so that it's the client who benefits, not the accountant. They also arrange for the minimum balance and minimum opening balance to be waived so that the client can open and operate it with as little as £100 and still not have to pay any bank charges. The main reason we like our clients to use CA is that we get a copy of their bank statement every month, meaning we can keep up to date with what's happening, can check they're up to date and correct with their book-keeping, and the client doesn't have the hassle of having to post/email us their bank statements. We certainly don't get any other "benefit" from recommending it to our clients other than convenience all round.

[Jessica@WhiteFieldTax]

Many more enlightened accountants have arranged for their "kick back", more properly known as introducer's commission, to be added to the client's account in the form of extra interest, so that it's the client who benefits, not the accountant.

Even more enlightened accountants use it to pay for their holidays and spa bills so they are refreshed and ready to give their clients 100%

In all seriousness, we disclose the commission, 0.25% average balance, but don't rebate. Equally we don't charge for setting up clients bank accounts. TBH CA account opening is such a PITA process that in many instances we would rather steer a client to the local Barclays, or advise they talk to their existing personal bankers. TBH the account setting up grief, and the potential reputational damage to use when it goes wrong, puts the commission into perspective.

[VectraMan]

I didn't intend that to sound like an attack on accountants. It's all okay if it's above board, but clearly there's a difference between the accountant saying "we have a deal with X, would you like to take advantage of it?" , and "we advise X" making it sound like independent advice.

FWIW I used one of those formation agents when I setup my Ltd. company, and that included "setting up a bank account". I put that in quotes, because what they actually did was send me the forms to fill out, which I then returned to them and they sent them to the bank. I then had to arrange to go down to my local branch with ID, which turned into a right faff as they had to liase with the branch in Manchester that the agent had picked. So quite what an accountant actually does to help you setup the company account I don't know. I had a second Ltd. company for a small plan B venture for a while, and for that I just went down to the local high street, ID in hand, and sorted it there and then. And that's what I'd recommend anybody else does. All the big high street branches have business units, and if you use the same bank for your business as your personal banking, it'll ease the process and also has the advantage that payments you make to yourself are instant.

[philip@wellwoodhoyle]

So quite what an accountant actually does to help you setup the company account I don't know.

Depends on the accountant. In our case, we draft the application form, check it all over, and send it to CA together with adequate ID proof - all the client has to do is sign the application form. Nearly all are opened within a week because we make sure that the application and enclosures are right and complete, meaning no need for CA to ask the client to jump through more hoops.

Two recent cases illustrate this. In one, they literally moved their home address on the same day that they started their trade, meaning no "current" home address documentary proof existed. In the other case, husband and wife, but wife hadn't changed her passport and driving licence to her married name, so we had no photographic ID with her address. In both cases, we knew that simply sending in the application form with the "wrong" supporting ID proof documents would result in delays etc so we pre-empted it by telephoning CA beforehand to pre-warn them and also to get their advice on what else we could do to enable them to speed up the process, and so it didn't end up ping-ponging between client and CA. In both cases, we agreed a compromise of alternative "proof" before the applications were posted, so that the extra documents could be included, thus ensuring no delays.

Bearing in mind we don't actually charge anything extra for this service and don't make any commission from it - for us, it's just part of the service we provide and helps us to keep our clients and get more recommendations from them.

[Maslins]

TBH CA account opening is such a PITA process that in many instances we would rather steer a client to the local Barclays, or advise they talk to their existing personal bankers. TBH the account setting up grief, and the potential reputational damage to use when it goes wrong, puts the commission into perspective.

Glad to hear you say that. I had a real headache getting mine open. Wasn't sure whether it was the system that was stupid or me!

[Mr Microsoft]

Cater Allen

I have had a Business Account with Cater Allen.

Besides the hassle of paying in a cheque, and the slow payments, I have had no complaints.

It would take a generous financial incentive for me to move my business.

Previously banked with Barclays which was a pain in the B*ckside.

[weeboaby]

I've used Cater Allen for the last 3 or so years (2 company accounts). I have only one minor grumble in that when paying dividends the online banking disallows making what it considers to be an "excessive transfer amount" so you have to use the phone. Everything else, fine.

[Sausage Surprise]

I've used Cater Allen for the last 3 or so years (2 company accounts). I have only one minor grumble in that when paying dividends the online banking disallows making what it considers to be an "excessive transfer amount" so you have to use the phone. Everything else, fine.

Never had that myself.

[malvolio]

So apart from the lack of rapid money transfer, limitations on single transactions, limitations on account balances, complications setting up the account, inconsistent deals on offer depending on who's asking and needing to phone them up to get stuff done, it comes highly recommended then...

Ermm...