'Trading As' required?

[aso186]

When I first opened my business bank account, I didn't have a business name, so I just used my name instead - by the time I'd notified HMRC though, I'd thought up a name

Now I'm wondering do I need to update my account name to 'trading as' to match Inland Revenue's records, or for any legal requirement if that? (my website uses my trading name).

Are there any (dis)advantages to using just my name as the account name?

 

[elaine@cheapaccounting]

Is it a limited company or a sole trader?

 

[MyAccountantOnline]

Are there any (dis)advantages to using just my name as the account name?

Yes, if you receive a cheque made payable to your business you wont be able to pay it into your bank account which will be in your personal name.

That's the only problem I can see assuming you are a soletrader.

 

[akirk]

I think that most banks given the correct paperwork will allow you to pay in cheques under a number of aliases... talk to the bank

Alasdair

 

[Wild Goose]

The other side of Nicola's coin is that if you should change the bank account name to the business trading name then you'll face equally stiff opposition to paying in cheques made out to you personally as payee.

Some get around the problem by changing the account name to the full "R Burton t/a Wild Geese" and banks should then accept cheques made out to either you or your business - I say "should" because they sometimes put up a fight esp on a Monday morning; but the argument is that if they are willing to accept a cheque made out to "Wild Geese", which is only part of the account name, then they should equally be prepared to accept a cheque made out to "R Burton", the other part of the account name. After all, who the hell writes a cheque to "R Burton trading as Flying Geese"?

As alluded to by Elaine, that won't wash with a limited company. Should be ok with a sole tradership though.

 

[elaine@cheapaccounting]

Limited co can have a trading name attached to the account as well - needs a letter from directors to do this (from memory) or change the company name.

 

[mr. mischief]

I doubt if the bank will notice. Whilst I was qualifying 20 years back I did a personal QA check on my bank - well you need something to lighten the load when you're memorising the Companies Act!

One day I signed my cheque M.Mouse, then D.Duck, Pluto, Huey, Duey and Louie Duck.

They all cleared no probs!

 

[Wild Goose]

One day I signed my cheque M.Mouse, then D.Duck, Pluto, Huey, Duey and Louie Duck.

They all cleared no probs!

Yup, the banks never seem to spot a Mickey Mouse cheque.

Make the slightest deviation on the payee line, and watch the bank clerk flatly refuse it! Funny creatures - God has given them discretion, but they never seem to want to use it; they say "I can't do that" when what they really mean is "I won't do that"; and once they have said "no" their supervisors and managers will back them to the hilt regardless of their misconceptions.

 

[aso186]

Is it a limited company or a sole trader?

Sorry, forgot to mention! Sole trader

To be honest, so long as there's no problem having my account name as my name, and HMRC know I'm trading as 'Whatever', then I'm happy the way things are.

The only reason I decided to persue it was on very few occasions I've had cheques written payable to the trading name (despite making it clear on invoices 'payable to...'!)

Thanks for all the responses

 

[Wild Goose]

This is very improper advice, but whenever I'm faced with the problem you mention (only in reverse - where the cheque is made out to me personally but I want it to be lodged in the business account) then I walk away from the bank, cross through my name on the payee line, insert the business name, copy the initials of the signatory, and bank the cheque the next day.

Nothing wrong with trading under your own name from a business or legal (or, for that matter, taxation) perspective. If you're a sole-trader (or for that matter a partnership) then the business account and your own bank account are just two different pockets on your same pair of trousers. (That's totally different for a limited company, btw - different trousers!). Back to sole traderships: from a practical point of view though it is best to avoid banking business income in both your business account and your personal account if you can help it - if and when HMRC come along enquiring into your business affairs you don't want them trawling through your personal account as well - best to keep business income in your business account, and just take across the odd weekly/monthly cheque for "drawings" from business account to private a/c.

 

[Minuteman Press]

After an account has been operated for a reasonable period of time (HSBC = 6 months) in my experience (and having discussed this with them) they are happy to register associated names having seen proof to show legitimacy - e.g. personal name, limited company name, trading name, similar trading names / spelling thereof.

Hope this helps.

Peter

 

[aso186]

This is very improper advice...

Ha! That's just what my Dad said to do - not sure I've got the bottle (or the steady hand) for it

best to keep business income in your business account, and just take across the odd weekly/monthly cheque for "drawings"

Yup, that's exactly what I do.