Reply to: Quick question regarding Tax and Banking

[marcosscriven]

I went for an HSBC business account for a one big reasons - I have my personal account with them, and as such, transfers between the two are instant (and free) - no 3 days clearing.

[Maxamus]

Does haveing a bank statement quarterly really make that much difference. I'm used to getting it monthly on my personal current account.

Maybe with their internet banking there isn't really a great need for quarterly statements..

M.

Doesnt bother me as i can download a statement whenever i like in excel format!

Doesnt make any difference what so ever wheather you get it monthly or quarterly because you can view / download account details/transactions anytime you like (which is what i do)

[Nixon Williams]

The choice of bank depends upon how much bother you want to go for.

Many of the offers from HSBC, Abbey, A&L etc need separate savings accounts to make best use of the interest offered and if you are lazy or forgetful about moving funds around you can get stung for interest and penalties.

In my view most are better off with a single account that pays good interest on the current account, free banking should also be offered.

The only bank I know that offers this package is Cater Allen.

Alan

[Flat Eric]

Hmm.

Having just started up my limited company I was looking for a bank account. I was going to go with A&L using their Business Builder current account. It has 2 years free banking.

I am now interested in HSBC. I like their Business Direct account but I don't like the idea of quarterly statements.

Does haveing a bank statement quarterly really make that much difference. I'm used to getting it monthly on my personal current account.

Maybe with their internet banking there isn't really a great need for quarterly statements..

what do you think........???

M.

[martinb]

got any more info on these?

http://www.hsbc.co.uk/1/2/business/s...t-deposit-bond

[Ardesco]

I personally like to segregate my money, but it is all individual preferance really. The cheque problem is not an issue for me as I virtually never write cheques.


Swings and roundabouts, apples and orranges, etc
If it makes it easier for you to ensure youhave enough money to pay the tax man use 2 accounts (my personal preference). If you are good at remembering how much you need to keep in your co account to ensure you have the money to pay tax do it all in one.

[Maxamus]

HSBC do useful 'bonds' 1,2,3,6 etc fix periods - returns from 4.2 to 5.6 that are part of the business account.

Pays the accountants fees at the end of the year

got any more info on these?

[martinb]

"Business Money Manager" - says it all, really. There aren't any short term high interest accounts these days (BMM is around 4% pa), so this is as good as anything, given that internet banking to do the transfers (instantly, if you need it) is cheap and easy.

Basically I keep working capital to cover the next month's known bills in the current a/c and shovel everything else into the deposit a/c. Add in a small agreed overdraft limit to cover the odd forgetful moment and you're covered.

Same here - keep enough in current account to cover the coming month's bills, put everything else into the deposit account (BMM). At the end of each financial year after I have worked out my approx Corp Tax I shove that (rounded up to the nearest £1k) into a 6 month bond so it matures just before the CT is payable.

[Fishface]

HSBC do useful 'bonds' 1,2,3,6 etc fix periods - returns from 4.2 to 5.6 that are part of the business account.

Pays the accountants fees at the end of the year

[Maxamus]

so would it be a good idea to put the corp tax set aside in the "business money manager" account until it is due?

PS. is the business desposit account that you guys are referring to the same as the "BMM"?

[malvolio]

Well i have a business account and a "BMM" account. No idea what the BMM account is. Im with HSBC.

The only reason i ask is because it keeps the business account tidy as your not subtracting corp tax/tax on salary that you have set aside for previous months everytime your working out divident payments for the next month....etc

"Business Money Manager" - says it all, really. There aren't any short term high interest accounts these days (BMM is around 4% pa), so this is as good as anything, given that internet banking to do the transfers (instantly, if you need it) is cheap and easy.

Basically I keep working capital to cover the next month's known bills in the current a/c and shovel everything else into the deposit a/c. Add in a small agreed overdraft limit to cover the odd forgetful moment and you're covered.

[Maxamus]

Well i have a business account and a "BMM" account. No idea what the BMM account is. Im with HSBC.

The only reason i ask is because it keeps the business account tidy as your not subtracting corp tax/tax on salary that you have set aside for previous months everytime your working out divident payments for the next month....etc

[Nixon Williams]

Generally it can get messy movings funds about, provided you have a decent account that pays good interest (eg Cater Allen)on the current account this will solve the problem.

We have had a few clients using current and deposit accounts that have gone overdrawn because the forgot to transfer, I say its not worth the bother.

Alan

[xoggoth]

Rather depends what you mean by savings account. A higher paying deposit account in name of the company is a good idea in theory but if you mean transferring it to something in your own name, anything over £5k may count as a director's loan which is taxable.

I say in theory as I used to have business current and deposit accounts and on various occasions ended up paying bank charges because cheques bounced when I forget to transfer it back.

[ratewhore]

CT I put in a company deposit account until it's due. PAYE and VAT I pay quarterly anyway so it's not worth moving the money around...