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Business Bank Account - Self Employed and Ltd Company ?

Only for UK Tier 1 (General) points system

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glaswegian17
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Posts: 2
Joined: Thu Apr 12, 2012 1:56 pm

Business Bank Account - Self Employed and Ltd Company ?

Post by glaswegian17 » Thu Apr 12, 2012 2:06 pm

Dear All,

My Tier 1 extension is due in March 2013. In order to meet earning points I did register a limited company (XX & Co) in January 2012 and also managed to open business bank account with company details i.e. XX & Co but has not started to operate the business yet.

Fortunately I got a permanent job with design consultants who offered me good salary and my employment already commenced on 01/03/2012 and now I only need £5k to qualify for required earning points for Tier 1 extension next year. So just decided to operate as a Self Employed Sole Trader. I am aware that I have to notify HMRC and will need UTR and also have to pay Class 2 NI etc.

I would appreciate if experts clarify below question for me:

Can I use same bank account for my sole trader business which says (XX & Co) or do I need to setup new business account?

Is this something which case worker can challenge while processing visa application?

Many thanks

AccountantMatthew
Member of Standing
Posts: 301
Joined: Mon Jul 04, 2011 4:20 pm
Location: London Town

Post by AccountantMatthew » Thu Apr 12, 2012 3:01 pm

No you won't be able to. As a sole trader you and your business are one and the same legal person (i.e. you) whilst a company is a separate legal person to you.

You can, however, use your own personal bank account for sole trader business activity. Whether you wish to open another one to keep things separate is up to you. Then whether it is another personal account or another business account is up to you - banks may insist that you open a business account but that is a matter of contract between you and the bank.

As a side issue, and I'm sure you've already done this, but if you are to be self employed then make sure that you have registered with HMRC and also made arrangements for Class 2 NI.
Please don't private message me or e-mail me for free personal advice - you are just wasting your time writing something that won't get answered.
Anything written here shouldn't be construed as being formal advice given in a professional capacity.

Sushil-ACCA
Diamond Member
Posts: 1234
Joined: Wed Apr 02, 2008 1:47 pm
Location: Wembley Park

Re: Business Bank Account - Self Employed and Ltd Company ?

Post by Sushil-ACCA » Thu Apr 12, 2012 3:11 pm

glaswegian17 wrote:Dear All,

My Tier 1 extension is due in March 2013. In order to meet earning points I did register a limited company (XX & Co) in January 2012 and also managed to open business bank account with company details i.e. XX & Co but has not started to operate the business yet.

Fortunately I got a permanent job with design consultants who offered me good salary and my employment already commenced on 01/03/2012 and now I only need £5k to qualify for required earning points for Tier 1 extension next year. So just decided to operate as a Self Employed Sole Trader. I am aware that I have to notify HMRC and will need UTR and also have to pay Class 2 NI etc.

I would appreciate if experts clarify below question for me:

Can I use same bank account for my sole trader business which says (XX & Co) or do I need to setup new business account?

Is this something which case worker can challenge while processing visa application?

Many thanks
No accountant will prepare accounts of a sole trader based on ltd company bank a/c

Manka10
Senior Member
Posts: 714
Joined: Wed Feb 22, 2012 9:11 am
Location: 127.0.0.1

Re: Business Bank Account - Self Employed and Ltd Company ?

Post by Manka10 » Thu Apr 12, 2012 5:18 pm

glaswegian17 wrote:Dear All,

My Tier 1 extension is due in March 2013. In order to meet earning points I did register a limited company (XX & Co) in January 2012 and also managed to open business bank account with company details i.e. XX & Co but has not started to operate the business yet.

Fortunately I got a permanent job with design consultants who offered me good salary and my employment already commenced on 01/03/2012 and now I only need £5k to qualify for required earning points for Tier 1 extension next year. So just decided to operate as a Self Employed Sole Trader. I am aware that I have to notify HMRC and will need UTR and also have to pay Class 2 NI etc.

I would appreciate if experts clarify below question for me:

Can I use same bank account for my sole trader business which says (XX & Co) or do I need to setup new business account?

Is this something which case worker can challenge while processing visa application?

Many thanks
Are you talking about just giving a name to your company & operate as sole trader under the company name ?

You can very well do that, I worked as sole trader with a company name, it was not a limited company though, just a business name/entity

My business accounts were in the name of the company & got accountants letter & eventually the LTR as well without any hitch or delays

the bank account statement and accountant's letter were address to:

<Actual Name>
TA <Company Name>

TA - trading as
Manka

Sushil-ACCA
Diamond Member
Posts: 1234
Joined: Wed Apr 02, 2008 1:47 pm
Location: Wembley Park

Post by Sushil-ACCA » Thu Apr 12, 2012 6:04 pm

HO have different officer and so many thing s r overlooked doest mean that

we can do what we want if , i was officer there were issues


with ltd bank statements an accountant can not prepare sole trading a/c but if money received in sole trading a/c a ltd a/c can be made not vice versa

glaswegian17
Newly Registered
Posts: 2
Joined: Thu Apr 12, 2012 1:56 pm

Business Bank Account - Self Employed and Ltd Company ?

Post by glaswegian17 » Thu Apr 12, 2012 9:44 pm

Mathew, Sushil & Manka,

Thank you very much for your time and help.

You guys have made it clear what I was after.

I have got another personal bank account so I would prefer to utilise it for this particular assignment.

With thanks

Manka10
Senior Member
Posts: 714
Joined: Wed Feb 22, 2012 9:11 am
Location: 127.0.0.1

Post by Manka10 » Fri Apr 13, 2012 10:46 am

Sushil-ACCA wrote:HO have different officer and so many thing s r overlooked doest mean that

we can do what we want if , i was officer there were issues


with ltd bank statements an accountant can not prepare sole trading a/c but if money received in sole trading a/c a ltd a/c can be made not vice versa
Its not overlooking if it happens twice, I had the same company name during initial & extension applications and have been doing business as a sole trader using the company name, I have mentioned mine was not a limited company.

If the OP changes the registered company name in HMRC & on the business bank account then should be alright to trade as company.

It will be nice and tidy if the business account is kept separate from personal bank account though its not mandatory
Manka

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