Is business current account protected by FSA?

[maxima]

thank you guys.

I've not seen what happens in practice!

there is a chinese curse - wish you to live in interesting time!

unfortunately we are living in interesting time. however fascinating it is not very positive.

[jamesbrown]

In general, for the size of company on CUK, yes, it would be covered up to 85k by the FSCS (as indicated above, that applies to a banking license, not an individual brand; several brands may be on the same license):

FSCS > Q&As about Deposits

[Waldorf]

Take a look at this blog, seems that upto £85000 per account is covered, but make sure that multiple accounts are not consolidated.

One option could be to pay some taxes earlier so at least HMRC have their funds, its not as though we get much interest on the balances anyway.

https://www.nixonwilliams.com/blog/p...-Scheme--FSCS-

[Nathan SJD Accountancy]

Hi Maxima,

I believe if your company lost a significant amount of money (due to the bank) and was unable to trade and meet its liabilities such as HMRC etc. Your company may need to be liquidated. HMRC would attempt to recover whatever they could from your company. Such as assets, premises (not your home, because you may own that, not your company) etc.

You personally, provided you have acted in your Ltd's best interests should not be liable personally.

Limited Liability is a wonderful thing.

I too, have not yet came across this.

I hope this helps!

[Clare@InTouch]

I believe so, but it's an idea to check with your actual bank (some are connected obviously, so there may be issues if you have £85k with Santander and £85k with Cater Allen).

HMRC would likely take it into account if you lost your tax money due to a bank going bust, and would give more time to pay. I've not seen what happens in practice!

[maxima]

I understand that small business savings accounts protected up to 85K. is that right? what about current account? if a bank goes bust will I lose balance on current account? Will HMRC sue me if I wont be able to make next payment (VAT or corp tax) due to my bank bankruptcy? does that mean i will have to go bankrupt myself or sell pants and try to pay tax from another source?