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Previously on "Is it illegal to have agency pay into personal account for LTD company"
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Carter Allan have accepted my application so should now be able to use them. Thank you all for your asnwers.
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Originally posted by tim123 View PostI think that (legally) you are completely wrong.
It's irrelevent that the director signed the contract, the debt is due to the company and a payment made in the name of the director will not discharge that debt.
Similarly, I don't see how you could argue that paying money to a director of a company, following the instructions of the director of a company, and in exchange for services provided by the company, doesn't count as paying the company.
But IANAL, so this may be carp.
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Originally posted by VectraMan View PostPersonal accounts have tax on the interest, business accounts don't.
ANYWAY - if the agency won't make payment into the account, the whole argument is a bit moot, really. You could get a cheque made out to the company (as already suggested), but it sounds like what ever you want to do - you need to get a company bank account sorted.
Some accountants can help with this.
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Originally posted by VectraMan View PostIt's not the same as paying an employee. A company director (i.e. you) has setup the agreement, signed the contract and specified where the money should go. If you were to receive the money and then try to claim the agent hadn't paid the company, I don't think you'd get very far in court.
It's irrelevent that the director signed the contract, the debt is due to the company and a payment made in the name of the director will not discharge that debt.
tim
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Originally posted by mark271 View PostWill look at setting up the halifax account until I am able to get a propper business account then maybe I could use that. I would not have a problem with HMRC looking at the personal account as there will only ever be business transactions from that account. I have not used the account for over 13 years and currently only 3p in there.
As no one knows for sure the safest route is to try and keep things separate.
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Will look at setting up the halifax account until I am able to get a propper business account then maybe I could use that. I would not have a problem with HMRC looking at the personal account as there will only ever be business transactions from that account. I have not used the account for over 13 years and currently only 3p in there.
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Originally posted by mark271 View PostGetting conflicting replys here and still not sure what is correct. The personal account is seperate and will only have business money in it. I know its not my money (until I pay a wage out of it). Its just taking a while finding an account and need to pay some bills so would like some money. I have around 4.5k I can invoice for but no way of getting the money. I looked at the halifax tresurer account but the accountant said I need a proper business account for them to be my accountant but could use a personal account in the short term if required.
Thanks for you help.
BTW David@purpleaccounts is an accountant.
I've been warned not to use personal bank accounts for your limited is because you and the limited company are separate legal entities and if HMRC investigate your company's finances you are now allowing them to look at your personal bank accounts.
Additional it's been posted that some agencies are now checking that contractors have a limited company bank account.
The simplest solution would be to
1. Set up the Halifax treasurers account
2. Get the agency to pay you into this account
3. Every time you incur a business expense you can't pay from your business account, pay it from your personal bank account and then reimburse yourself like with normal expenses
4. Record it like normal expenses in your records.
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Getting conflicting replys here and still not sure what is correct. The personal account is seperate and will only have business money in it. I know its not my money (until I pay a wage out of it). Its just taking a while finding an account and need to pay some bills so would like some money. I have around 4.5k I can invoice for but no way of getting the money. I looked at the halifax tresurer account but the accountant said I need a proper business account for them to be my accountant but could use a personal account in the short term if required.
Thanks for you help.
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Originally posted by VectraMan View PostPersonal accounts have tax on the interest, business accounts don't.
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Originally posted by tim123 View PostPaying it into your personal account will not discharge the debt and any agency that does this is asking for trouble.
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Originally posted by tim123 View PostYep, This is more of less what I was going to say.
Paying it into your personal account will not discharge the debt and any agency that does this is asking for trouble.
tim
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Originally posted by Sockpuppet View PostYour forgetting that you could claim payment was not made to the company and to you instead so ask for payment again.
Would Dixons let you buy a TV by paying into the account of a sales manager.
Paying it into your personal account will not discharge the debt and any agency that does this is asking for trouble.
tim
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Your forgetting that you could claim payment was not made to the company and to you instead so ask for payment again.
Would Dixons let you buy a TV by paying into the account of a sales manager.
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Originally posted by Cowboy Bob View PostAs long as the company money is kept separate from your normal personal money everything is fine. The only difference between a business account and a personal one is the services you get with it - things like a BACS facility.
The agency are wrong and SJD are right.
I agree though - nothing wrong with this as long as you account properly for what's the company's money and what's your money. And if you do get interest, then the proportion of the interest earned from the company's money belongs to the company too, so it gets a bit tricky.
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