Reply to: Do I need to close my bank account

[northernladuk]

Spoilsport

[VectraMan]

The crown takes the money from your business account when you close your company because the company no longer exists as a legal entity and so nobody owns the money. Your personal account is your account; as long as you still exist as a legal entity then nobody will take anything. Companies House doesn't do any of this, and neither do HMRC. It's the bank that does it when you tell them you're closing the Ltd. company that owns the bank account.

What a weird thread. I know it's a joke, but still a weird joke.

[SueEllen]

So if the company is shut down and his personal bank account has been used they will close his bank account and take all the money in it?

Can't HMRC take taxes straight out of the account without notice so they can take his money at any point well before he tries to change account?

Muahahaha.....

I said open another bank account.

I did not say close the old account down or use a switching service.

Personally the best thing to do in this situation is:
1. Open another account with a different banking group
2. Manually move payments over
3. Tell everyone your new account details
4. Leave the old account alone apart from cancelling direct debits going through that account.
5. Get help from an accountant to sort out the mess you are in with HMRC etc
6. Hope the old bank doesn't notice you were trading through the personal account and puts some tulip on your credit records.

[MrMarkyMark]

He didn't say he used an umbrella.

He said he had an offer from an umbrella company but didn't use them.

Oops, correct, my mistake .


OP, better get that lube ready, then.

HTH.

[ikodel]

How can you have an umbrella company and be set up as a sole trader

I don't, I was offered one by the agency before setting up business but I did not take it up.

[northernladuk]

Yep.

Go and open a bank account with another bank asap.

So if the company is shut down and his personal bank account has been used they will close his bank account and take all the money in it?

Can't HMRC take taxes straight out of the account without notice so they can take his money at any point well before he tries to change account?

Muahahaha......

[SueEllen]

But....he says he uses an umbrella, how could he be incoporated

He didn't say he used an umbrella.

He said he had an offer from an umbrella company but didn't use them.

[MrMarkyMark]

If you incorporate a company, are an officer of that company e.g. a director and there are no other employees you are not a sole trader. You are running a closed company.

But....he says he uses an umbrella, how could he be incoporated

[SueEllen]

How can you have an umbrella company and be set up as a sole trader

Remember some people aren't capable of running companies for various reasons including the inability to do research.

[SueEllen]

Yes, that's right. Agency didn't even ask a thing. So I'm fooked then?

Yep.

Go and open a bank account with another bank asap.

That's the question exactly. I mentioned sole trader as the business model where you are the company (no employees).

No that is not what a sole trader is. If you can use Google you can find out what one is it isn't hard.

If you incorporate a company, are an officer of that company e.g. a director and there are no other employees you are not a sole trader. You are running a closed company.

Look explanation about your status is:
1. If your bank found out you were using a personal account for business transactions they can close down all your accounts. Most don't and force you to open up a business account as well.
2. If your company is struck off, the bank account is frozen and any money in it then that goes to the Treasury. You can get the money back but you will need help doing it and it's not free. (An accountant who posts on here will be able to help you.)

[MrMarkyMark]

Yes, that's right. Agency didn't even ask a thing. So I'm fooked then?



That's the question exactly. I mentioned sole trader as the business model where you are the company (no employees).

To the others, yes I didn't seek proper advice at the time and set a company quickly due to a deadline, and the umbrella company offered to take care of all these things wanted a big chunk of my (not great) wage.

The permie job is actually paying considerably more.

How can you have an umbrella company and be set up as a sole trader

[ikodel]

If the company has now been struck off but a business bank account is still open with money in it, that'll be winging its way to the Treasury as we speak!

There was never a business account used, also like I said, I am looking to close down the company, nothing has happened as yet.

Would I be better off putting it in a dormant state?

[ikodel]

It's really not clear what your situation is.

Do you mean you set up a limited company and used your personal current account to receive payments? I'm surprised the agency would allow that.

Yes, that's right. Agency didn't even ask a thing regarding the type of account I asked to receive payment in. So I'm fooked then?

Then you mention 'sole trader'. What do you mean by that?

Is your question "Will I have to close my personal account when I close my limited company?"

That's the question exactly. I mentioned sole trader as the business model where you are the company (no employees).

To the others, yes I didn't seek proper advice at the time and set a company quickly due to a deadline, and the umbrella company offered to take care of all these things wanted a big chunk of my (not great) wage.

The permie job is actually paying considerably more.

[northernladuk]

Jesus wept.. Thank god he's going back permie.

[BolshieBastard]

Jesus. Sounds like no accountant has been used at all here and a personal bank account used for business purposes!?

If the company has now been struck off but a business bank account is still open with money in it, that'll be winging its way to the Treasury as we speak!