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Previously on "Personal bank account?"

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  • MikeC1408
    replied
    HSBC opened my account and gave me the account number in a 30 minute meeting.

    I'd get yourself down the bank now (if you have all your documentation with you)

    Leave a comment:


  • tino
    replied
    Don't do it - invoice ALWAYS from the company. You're supposed to be a business - you need to start acting like it.

    *sits back, puts feet up and lights fag*

    Leave a comment:


  • Bengal
    replied
    Regardless of whether the payment is made in cash, by cheque or BACS, the tax rules say that the agency has to opeerate PAYE on the payment if made to an individual.

    Leave a comment:


  • SueEllen
    replied
    Originally posted by Sausage Surprise View Post
    Ask for cash
    He will be lucky to get a cheque!

    (Which is actually an option. However credit check the company cos it may bounce.)

    Leave a comment:


  • Bengal
    replied
    Originally posted by lukeredpath View Post
    Surely the contract is what counts here, not how you've been paid? It seems a bit of a leap to say that just because the money has gone into your personal account that you were in an employment relationship.
    Not trying to be rude mate but you are missing the point. Its not what you see is right its how HMRC will look at it. As far as it will be concerned the payment was made to you personally and therefore there is an implied contract in pkace. The fact that there is a contract between your company and the agency will be ignored (and HMRC might assume that its just a sham in anycase).

    Now, if you then pay the money to the company account, HMRC will not give a monkey about it. What they will look at is the tax position at the point that the agency made the payment and not what you then did with the money.

    Also, under the agency tax legislation, an agency cannot pay an individual without operting PAYE and NIC on the payment. If they make the payment to you and don't operate PAYE and HMRC carry out a review and discover this HMRC will sting the agency for the PAYE/NIC and also interest and penalties. This is why contractors provide services via their own companies which gets round the need for the agency to operate PAYE.

    Leave a comment:


  • EchoSierra
    replied
    It was made very clear to me that there was no way my agency would pay into my personal bank account instead of a business bank account. Payments would have to wait until the business bank account was set up.

    Leave a comment:


  • Sausage Surprise
    replied
    Ask for cash

    Leave a comment:


  • SueEllen
    replied
    It will take you a day to set up a Business Account if you have a clean credit record. (I can't remember if they give you your account number as soon as you have opened your account but lots of banks do.)

    All you need to do is phone them up and ask what ID you need to take with you, get the ID, then go to a business banking branch and ask to open an account. They should give you an appointment the same day (normally within an hour) and you can open your account there and then.

    You can then set up an account with someone else and ditch them if you later wish to.

    Leave a comment:


  • moorfield
    replied
    Originally posted by pmeswani View Post
    Personally, I would have got this sorted prior to Day 1 of your contract.
    +1

    I'm surprised actually that an agency is dealing with you, without a bank account. The better ones I would expect to check this as part of their own due diligence on you.

    But to answer the original question, I would just put the invoice on hold until it's sorted. Most of the thicko pimps don't know what a cheque is these days.

    Leave a comment:


  • TheCyclingProgrammer
    replied
    Surely the contract is what counts here, not how you've been paid? It seems a bit of a leap to say that just because the money has gone into your personal account that you were in an employment relationship.

    I understand its a good idea to keep your personal/business payments separate but as long as its all accounted for correctly, the invoice is raised in your company name, your contract is solid and you transfer the received payments into the business account once its opened, I can't see why you'd have a problem.

    Really can't see why it would be a problem as long as you always treat it as your company's money and not yours.

    Another possible alternative would be to debit the payments to the director's loan account (assuming they are less than £5000) then when the payment is moved into the business account, transfer the balance from the directors loan account to the business account.
    Last edited by TheCyclingProgrammer; 1 May 2009, 13:57.

    Leave a comment:


  • Bengal
    replied
    If I was the company payiong you, I would refuse to make a payment to you personally particularly where the contract is with your limited company. If the company makes the payment direct to you, as far as HMRC would be concerned, is that the company has a contract with you personally and then you are into the usual employed v self-employed arguements which leaves the company at risk.

    Even though as contractreviews.co.uk suggests giving an undertaking, HMRC will pursue PAYE, and employees and employers NIC from your client. Then should your client look to recover the money from you they can only recover the PAYE and employees NIC, this is of course you are still in contact with the company. I would say, not good for business this approach, you want to keep your client's sweet and not create potential difficulties in the future for them.

    Suggest delay invoicing and get company bank account set up urgently or invoice now and get a cheque and hold the cheque until bank account is opened (cheques - if I remember can be banked up to 6 months after the date it was issued).
    Last edited by Bengal; 28 April 2009, 15:50. Reason: Addition

    Leave a comment:


  • contractreviews.co.uk
    replied
    Hi Flowhopper,

    It is possible but not recommended as you should always keep your business income separate from your personal income.

    However, if you do need to get paid and you can prove that you have indeed set up your company and are the sole owner and director of the company, you can ask to be paid in your personal bank account.

    It will be up to your client to accept to make the payment. You should normally give, as the director of the company, an undertaking discharge your client of any further liability in regards to this payment.

    Normally, I would not recommend for anyone to go down this route as there should be a clear division between your and your company’s finances.

    But in any case I recommend you open your business bank account asap and make sure to get all future earnings transferred in this.

    Hope this helps.

    Mardi

    Leave a comment:


  • BolshieBastard
    replied
    Originally posted by floehopper View Post
    I've just started freelancing via my Limited Company and I want to issue my first invoice. I don't yet have a company bank account. Can I accept payments into my personal account and then transfer the money in the company account when it's set up? Or would it be better to (a) ask to be paid by cheque which I could pay into the company account when it's set up; or (b) delay issuing the invoice until I have the company account set up?

    Thanks.
    Nope. The bank wont accept a company cheque into a personal bank account.

    Leave a comment:


  • pmeswani
    replied
    Originally posted by floehopper View Post
    I've just started freelancing via my Limited Company and I want to issue my first invoice. I don't yet have a company bank account. Can I accept payments into my personal account and then transfer the money in the company account when it's set up? Or would it be better to (a) ask to be paid by cheque which I could pay into the company account when it's set up; or (b) delay issuing the invoice until I have the company account set up?

    Thanks.
    Personally, I would have got this sorted prior to Day 1 of your contract.

    Leave a comment:


  • Pondlife
    replied
    I would go for the cheque or delayed invoice option.

    Only trouble can come from blurring the distinction between personal and company cash IMHO.

    Leave a comment:

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