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I can't find it written in the Companies Act 2006, or anywhere else...if anyone can then it would be useful to know.
If you used a personal account for a Ltd co then their would be no limited liability on the personal account as there would be on a company account.
For HMRC purposes, a co account is transparent and everything separate.
Companies that are part of a group often use one account for all.
Thanks for your reply, the company in my question is not part of a group. Companies House is aware of the situation but I will get back to them to see if they are in breach of company regulations. Thanks again.
ah...clippy has quoted a post that I just deleted! I misread the question and thought it was an accountant's bill, not a tax bill (either way it's a sign you've got a shoddy accountant). Although I think my point still stands, if it's a big company tax bill, the personal tax implication on top might make it worth unravelling.
Can you point me to the legislation or rules that say this or is this just opinion? Reason being I do have a claim against a limited company that banks on behalf of another “unrelated” company. So far the IR has said there is nothing wrong with them doing that.
I can't find it written in the Companies Act 2006, or anywhere else...if anyone can then it would be useful to know.
If you used a personal account for a Ltd co then their would be no limited liability on the personal account as there would be on a company account.
For HMRC purposes, a co account is transparent and everything separate.
Companies that are part of a group often use one account for all.
ah...clippy has quoted a post that I just deleted! I misread the question and thought it was an accountant's bill, not a tax bill (either way it's a sign you've got a shoddy accountant). Although I think my point still stands, if it's a big company tax bill, the personal tax implication on top might make it worth unravelling.
The simple answer: yes of course you can pay it off from your personal account. You can spend your money on whatever you like.
No implications, unless you want to get yourself in a tizz about paying it out of personal taxed income when with a bit more foresight you could have paid it out of company turnover. But the hassle of unraveling that won't be worth the extra tax.
To be fair, it sounds like the OP's accountant gave poor advice:
The account had been inactive since August, so account did advise to close company amd nove cash to personal account.
Technically, your company is a legal entity in it's own right and must have it's own bank account.
Can you point me to the legislation or rules that say this or is this just opinion? Reason being I do have a claim against a limited company that banks on behalf of another “unrelated” company. So far the IR has said there is nothing wrong with them doing that.
So if I was to pay using personal account, what would the implications be?
The honest answer is, I don't know.
However if the accounts are all correct and the money that you have transferred to your personal account is accounted for correctly, in as much as distributed by a dividend or capital distribution under ESC C16, then I don't think HMRC would object.
Maybe it would be wise to phone your tax office and ask (all counts to due diligence as the call will be logged)
Is your company still trading, or intending to? If so it will need a company bank account.
Was there any money transferred to your personal account when you closed the company account....meaning you owe the company?
Technically, your company is a legal entity in it's own right and must have it's own bank account.
We have not come across this situation before and it would be good to see what others think...
I wonder, if it was a final tax payment....would HMRC care where the money has come from so long as it was paid?
I bet they wouldn't, but the Companies Act probably would.
I would advise that you open a new account. Cater Allen offer free banking!
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