Paying myself from the business bank account.

1224 · Dec 11, 2009

Hello!

There's lots of bank accounts available, but I'm struggling to find one that could fit my needs - although this may be due to my lack of business terminology. I'm a software developer, so 99.9% of all payments will be made through the net, and I'm intending on setting up as a limited company. I've seen the Abbey business bank account which seems to be popular, but it seems that if I have my own personal account I'm charged an extortionate amount to transfer money from the business account to my personal account (i.e. paying myself). The rates given are:

BACS credited - Free
CHAPS payment (UK) - £20

Am I correct in saying it would cost £240 per year to transfer money monthly to my own personal account??? Also, if I took staff on (probably won't, but that's beside the point), I'm then paying £240 for them to get paid also? For Abbey in particular, there doesn't seem to be anything for a BACS debit?

Thanks very much.

elaine@cheapaccounting · Dec 11, 2009

BAcs transfers are free. Chaps of for instant transfers.

BACS on Abbey will be fine for your needs and is free. Transfers to your personal account, paying bills etc - all free.

The Abbey business account should be suitable for your needs and should not cost you given what you have described.

I think you have misunderstand the BACS credit. Phone them up and check it out but it covers you making payments from your account.

1224 · Dec 11, 2009

Hi Elaine,

Thanks for the quick reply!

I think you have misunderstand the BACS credit

More than likely!

What is confusing is why they state BACS credited, as it implies that this is only for BACS transfers into the account... Hrm, nevertheless perhaps a phone call would help straighten things out.

Thanks again.

elaine@cheapaccounting · Dec 11, 2009

Well it works free for me!

Jenni384 · Dec 11, 2009

CHAPS is a specialised same day payment mechanism - BACS used to be 3 working days.

Now with the new Faster Payments system, BACS payments are often same day or next day.

I wouldn't worry about the CHAPS fee - the only time I've seen it used is for large sum transfers like mortgage deposits and for urgent payments, so you're unlikely to need this service day to day.

Christiane · Dec 11, 2009

I'm with A&L and use BACS payment all the time to pay staff and suppliers, it's free and take three days.

They also have ''faster payments'' enabled (money transferred within 2 hours) but it's only for payments up to £250, that's free too.

MASSEY · Dec 11, 2009

Abbey business banking accounts are slated all over the internet with unhappy customers, every bank has its unhappy customers but abbey and alliance & L seem to be streets ahead i personally would avoid them.

Williams lester · Dec 12, 2009

MASSEY said:
Abbey business banking accounts are slated all over the internet with unhappy customers, every bank has its unhappy customers but abbey and alliance & L seem to be streets ahead i personally would avoid them.

And I would advise to totally ignore the above, we have many clients who use abbey, I also have a business account with them myself. Never had a single complaint or problem.

You will find all banks make errors or have difficulties with certain things, if the abbey business model of free banking for life suits you and most of your income will be by transfer or SO then go with abbey.

The bottom line is that all banks are awful, just find one which has services suited to your business.

KM-Tiger · Dec 12, 2009

Williams lester said:
The bottom line is that all banks are awful ...

Indeed, and particularly illuminating is when a solicitor explains in detail the meaning of the T&C's you sign up to when you open an account or sign up to a loan.

Banks love to have their cake, eat it, and then eat you, whilst giving the impression that they are doing you a huge favour, for which you should be grateful.

Don't trust any of them, and never put all your eggs in one basket. My own solicitor keeps his business, personal and client accounts in three entirely separate banks, for sound legal reasons he tells me. I believe him.

hereu · Dec 12, 2009

MASSEY said:
Abbey business banking accounts are slated all over the internet with unhappy customers, every bank has its unhappy customers but abbey and alliance & L seem to be streets ahead i personally would avoid them.

I have online accounts with both and haven't had any problem.

I pay myself from my Abbey business and as mentioned above, it takes 3 days and there aren't any charges for this.

Abbey business has been faultless for me over the last few years and saved me a load on charges.

Jenni384 · Dec 12, 2009

Our business account is with Abbey and we've not had any problems.

Totally agree - all banks are dreadful, every bank will have happy and unhappy customers, so pick the bank that offers what you want.

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Paying myself from the business bank account.

1224

elaine@cheapaccounting

1224

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Jenni384

Christiane

MASSEY

Williams lester

KM-Tiger

hereu

Jenni384

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