first pay run

[frustin]

hi all, just started back on my first contract after a period of permi.

i've been at my current gig for 1 week. the pay cut off is today. Because the gig set up happened so quickly my business bank has not yet been set up completely (it's in progress).

the agency is saying that they'll only pay into a business bank assigned to my LTD company name. Any reason they shouldnt just put it into my personal account until the business bank is set up?

[Lance]

hi all, just started back on my first contract after a period of permi.

i've been at my current gig for 1 week. the pay cut off is today. Because the gig set up happened so quickly my business bank has not yet been set up completely (it's in progress).

the agency is saying that they'll only pay into a business bank assigned to my LTD company name. Any reason they shouldnt just put it into my personal account until the business bank is set up?

lots.....
1) The contract is with your company
2) money laundering rules
3) it's NOT YOUR MONEY so why should they pay you?


EDIT: Just delay the payment till you have a bank account. It won't be that long.

As a point of note, you can''t just take the money out of the company bank as you please. You know that don't you? Your accountant will tell you (you do have one don't you?).

[frustin]

lots.....
1) The contract is with your company
2) money laundering rules
3) it's NOT YOUR MONEY so why should they pay you?


EDIT: Just delay the payment till you have a bank account. It won't be that long.

As a point of note, you can''t just take the money out of the company bank as you please. You know that don't you? Your accountant will tell you (you do have one don't you?).

Yes, I know it's not my money and yes I know i cant just take it out.

I was just wondering as an interim.

[WTFH]

hi all, just started back on my first contract after a period of permi.

i've been at my current gig for 1 week. the pay cut off is today. Because the gig set up happened so quickly my business bank has not yet been set up completely (it's in progress).

the agency is saying that they'll only pay into a business bank assigned to my LTD company name. Any reason they shouldnt just put it into my personal account until the business bank is set up?

Have you got an accountant?
Have you got your Ltd set up yet?
Have you started the process of setting up a business bank account with a bank?

[Lance]

Yes, I know it's not my money and yes I know i cant just take it out.

I was just wondering as an interim.

interim or not, it is what it is....
Interim payments are what companies pay employees to keep them sweet.
I suggest you just be patient, and if the wolf is at the door use overdraft, or even a pay day lender. Or maybe get a loan from Zopa https://www.zopa.com/

[frustin]

thank you for your help. i've got an accountant.

I've asked the agency to delay the pay run for a week or two otherwise i'll have to wait.

[WTFH]

I was just wondering as an interim.

As an interim, you'll need to wait until you have your company bank account set up.

It hasn't really changed in the last few years, so if you've "started back", that would imply you were a contractor in the past, so you'll know the ropes.

I'd be concerned that if you've contracted before and didn't understand the idea of cashflow, that you could be in for a rough few weeks. You've only done a week's work, it could take a month to get your business account set up, so you may need to rein in your spending for a while.

[WordIsBond]

If your Ltd Co is set up, you can open a borderless business account with Transferwise in a matter of hours. You could have the agency pay that account.

If you need funds, and take funds out as a Directors Loan (which has to be paid back), until you get your main business account set up. I wouldn't advise doing payroll or dividends out of your Transferwise account, ideally you want all the records for that in the same place/same business account, so it will be cleaner to wait to do that stuff. But once your main account is set up you could pay yourself a dividend and use it to repay the DL.

In general, Transferwise isn't designed to do your banking for you. But it could work as a stop-gap.

[cosmic]

My advice use a credit card for now with 0% interest until your bank details arrive. Call up the bank to see if it could be sped up .. should only take a few weeks cards could be up to 4 weeks. Online banking even longer. Don't use pay day lenders!!! More likely will be paid on third or fourth week so should have a good amount of cash when paid!

[jmo21]

Starling is another business bank option, if you are an existing personal customer (like I was), getting a business account with them takes minutes.