Bank details

[Diver]

Bank Account Nightmare

No! No! No!

You are not entitled to these proceeds or payments as an individual.
they are by law the property of the company.
closing down the company or making said company dormant just to gain payment in your own name, even if you are the sole director of said company is fraud and is an imprisonable offence.
when you cease trading or make dormant said LTD company, you will be required to make a legal declaration concerning the financial condition of the company. Do not add perjury and deception to fraud.

Go and see an Accountant

"under Water nobody can hear you scream" In prison they can

Yes they were exceptionally happy with my work but treated me badly. No job lined up...i'm going travelling for a year instead. cannnooooot wait. i'm sick of the industry i was in and the culture they have. so opening a ltd company was a mistake, but it's long story (see my other posts if u want a history...don't want to bore u!)....if this client paid me a £1 million I wouldn't go back....

can i write and cancel the ltd company? then do a tax return on the money which the client (may) pay?

[max]

Thanks. But what I don't understand is, how does the client know that the bank account details I give them are not the limited company's?

Sorry but this is the first time I have done this. I didnt want to open a ltd company, but I had to. But then I didn't expect the client to end the work and give me no contract. the one week I did with no contract (I am such an idiot) so I am not even expecting them to pay but don't know what to put on the invoice.

I think they will refuse to give a cheque....

Was the client happy with your work? If not, they may ask you not to come back after 1 week and not pay you. er..whoops.

The ltd co would normally cost £500 - £1500+ per year to run. Returns, insurances etc.

So no more contracting? You have another job you can go back to?

[thunderlizard]

Have a word with an accountant. If it's only for a one-off and you're being honest about everything, I'm sure there's a way around it but I don't know what it is.

[LordF]

Thanks. But what I don't understand is, how does the client know that the bank account details I give them are not the limited company's?

Sorry but this is the first time I have done this. I didnt want to open a ltd company, but I had to. But then I didn't expect the client to end the work and give me no contract. the one week I did with no contract (I am such an idiot) so I am not even expecting them to pay but don't know what to put on the invoice.

I think they will refuse to give a cheque....

You provide your services via your Ltd Co. It will be the Ltd Co that invoices and it will be it that needs to get paid. So go and get a business bank account for the Ltd Company.

[oraclesmith]

It's not the client that cares.

If you pay fees billed by your limited company directly into your personal bank account you are effectively saying to Her Majesty's Revenue and Customs - 'hello, I'm dodgy, come and get me'. Because this money never flows through the company books before it goes into your personal account, it doesn't attract any tax. And HMRC don't like that.

What you've got to get crystal clear is that the limited company you set up is a seperate legal entity to you as a person.

Thanks. But what I don't understand is, how does the client know that the bank account details I give them are not the limited company's?

Sorry but this is the first time I have done this. I didnt want to open a ltd company, but I had to. But then I didn't expect the client to end the work and give me no contract. the one week I did with no contract (I am such an idiot) so I am not even expecting them to pay but don't know what to put on the invoice.

I think they will refuse to give a cheque....

[oraclesmith]

It's the company that has the business bank account, not you.

If the client owes to the company, they shouldn't pay it to you. You get my meaning ?

If this limited is only going to exist for a week, then it's probably going to cost you more in accountancy fees and filing etc than it's worth. You'd still need to do annual accounts etc if the company has traded, and I guess it has some expenditure. A limited company is a useful vehicle, so you could keep it going and maybe use it to buy and sell stuff.

You could just invoice as a sole trader, but this depends on the contract. If it's only a week, can't they pay your company by cheque and then you have time to sort out the company bank account?

Another possibility is that you find a friendly consultant with a limited already set up and get them to invoice. When you have your limited bank account set up your company can invoice their company and get the dough.

If you do as you suggest which is to have the money paid straight into your personal bank account, you're just asking for an HMRC investigation.

[Diver]

Bank Account

When you have a limited company, do you have to have a business account?
On the invoice, can you just put your current account details? Will the client know?


The client would have to agree to make payment to what is essentialy a third party for the services of your Ltd company.
Or does your bank account state Ltd.

don't forget that as a limited company contractor you recieve full payment, I.e. No tax deduction.

it's a tangled web we weave sayeth the tax man!

When you have a limited company, do you have to have a business account?

On the invoice, can you just put your current account details? Will the client know?

Basically it's my first and last time contracting, it was only a week of work (long story but it was supposed to be longer term and I was previously with agency). I had set up the ltd co. but not the business account yet. As I won't be doing it again I don't see the point of going ahead with the business bank account, and I need to send them an invoice ASAP.