Could you get awaywith this

[tim123]

Out of curiosity

as personal bank accounts are guaranteed to 50k and business are not, could you transfer your business funds into personal and then pay yourself a 'service fee' as it is safeguarding and managing your the business's money??

How would this fee help?

It would still be personal income that you would have to declare and pay tax on.

It doesn't magically turn into free money because it is paid to you for services provided to you company, instead of for services provided to your company's client.

tim

[thunderlizard]

could you transfer your business funds into personal and then pay yourself a 'service fee' as it is safeguarding and managing your the business's money??

If you're running the business you can pay yourself a service fee for whatever you like.

[basshead]

So those of us with a 'war fund' of 800K plus are not safe then?

Can I be on your side when war kicks off?

[Emigre]

I guess the answer is "No", unless you have spread it around between 16 banks, assuming you can find 16 left that aren't part of the same group, or taken it all offshore to Ireland.

So, can we claim a loss against CGT if we lose cash in a bank going belly up?

[spoons]

So those of us with a 'war fund' of 800K plus are not safe then?

[cupidstunt]

Just to clarify, limited companies that are small companies as defined by the Companies Act (Turnover < £6.5M, Assets < £3.26M, and <50 employees) are also covered up to £50k.

So those of us with a 'war fund' of 800K plus are not safe then?

[Friendly Accountant]

Ltd Co is covered

Just to clarify, limited companies that are small companies as defined by the Companies Act (Turnover < £6.5M, Assets < £3.26M, and <50 employees) are also covered up to £50k.

[NotAllThere]

In this instance, it seems likely to me that "Business Account" will refer to Sole Traders, not Ltd Co small businesses.

I don't have a business account. A company in which I am a shareholder legally owns the account.

[Emigre]

More news on this on CUK today

http://www.contractoruk.com/news/004019.html

The following extract appears to suggest that all types of individual/business account are covered. However, it also suggests that you would only be covered once if you held £50k personally and £50k in your business account. This is the case because your business account is you trading as xxx.

What is not clear is whether you can claim personally and for a ltdco. Legally, a ltdco is a separate persona and therefore ought to be eligible if the FSCS spokesperson below is correct.

A spokeswoman for the Financial Services Compensation Scheme explained: “The same levels of compensation apply whether the claimant is a private individual, small business, or a small company.

"If you had your personal and your business account with the same institution and it failed, you would be protected up to a maximum of £50,000, across both accounts.”

In terms of OP you probably know the answer

[Lewis]

Out of curiosity

as personal bank accounts are guaranteed to 50k and business are not, could you transfer your business funds into personal and then pay yourself a 'service fee' as it is safeguarding and managing your the business's money??

Small business accounts are also protected (i.e. contractors) to same level.

[YHB]

Out of curiosity

as personal bank accounts are guaranteed to 50k and business are not, could you transfer your business funds into personal and then pay yourself a 'service fee' as it is safeguarding and managing your the business's money??