BUSINESS BANK ACCOUNT

[SHARPYWAN]

Hi,
i currently have 2 ltd companies that have both been running for 7+ years.
I have now set up a 3rd, and need to pay rent deposit, buy some equipment etc all within the next few days.
Unfortunately it seems opening a business bank account can no longer be done in person and it's all online.
I've been told it will be up to 30 days before account is open.

So if i pay for lots of things for the new ltd company from my other companies bank accounts, how do i account for that?
It could get very messy couldn't it, or does it not matter as long as all paperwork/invoices are to the new ltd company and then i just transfer the money back once account is open?

 

[Joyous]

Just treat it as an intercompany loan. Each item bought for the new company increases the loan balance. As soon as the new bank account is open repay the loan.

 

[SHARPYWAN]

The plan was to transfer £40k from each current Ltd company into the new ltd co bank account as intercompany loans that would be paid off over the next 3 years. Without a bank account for the new ltd co i can't do that. So just paying invoices etc from existing companies can still be lumped together and treated as a long term inter company loan? can i then still claim the vat from the new company as the invoices will be in new co name?

 

[Scalloway]

So just paying invoices etc from existing companies can still be lumped together and treated as a long term inter company loan?

Yes

can i then still claim the vat from the new company as the invoices will be in new co name?

Yes

 

[HFE Signs]

Can't you simply transfer the money back so it cancels out, if its in the same tax period? Don't overcomplicate it.

 

[Paul Kelly ICHYB]

One assumes the 30 day quote is from a high street bank?

You can open a bank account in 30 minutes using one of the challenger banks.

 

[SHARPYWAN]

One assumes the 30 day quote is from a high street bank?

You can open a bank account in 30 minutes using one of the challenger banks.

yes that's right, gone with LLoyds, but HSBC and Natwest exactly the same. Excuse my ignorance but what are challenger banks please?

 

[SHARPYWAN]

Can't you simply transfer the money back so it cancels out, if its in the same tax period? Don't overcomplicate it.

The new company won't start trading until October so won't be in same period

 

[Joyous]

Excuse my ignorance but what are challenger banks please?

A non traditional deposit taker offering banking services online instead of through bricks and mortar branches. Examples include Tide and Monzo.

 

[SHARPYWAN]

A non traditional deposit taker offering banking services online instead of through bricks and mortar branches. Examples include Tide and Monzo.

I looked at Tide, but wasn't sure how genuine they were. Also do they allow you to pay cash in at post offices etc? as well as all usual online payments in and out

 

[Joyous]

I looked at Tide, but wasn't sure how genuine they were

They are genuine, many of my clients bank with them. I believe they do offer Post Office deposits. You get an account number and sort code the same as any traditional bank so yes, the usual internet banking is possible. Pretty tough for an online bank to operate if not don't you think?

 

[Ozzy]

One of those challenger banks does have an offer for UKBF members here, Cashplus Bank (although they are rebranding next month so I'll have to get this page updated)

 

[Scalloway]

The new company won't start trading until October so won't be in same period

The period makes no odds. Any transfers of this type between your companies have no tax consequences for either.

 

[boxlot]

It's not the best idea to pay 3rd company expenses from 1st/2nd company account. You should transfer money to your personal account and pay for 3rd company from there. You can show these as directors loans for all 3 companies.

Regarding business bank account, I got my Monzo account instantly and card arrived in 2 days.

 

[numbersrule]

I agree with Boxlot.
It seems to me that co to co may have some currently hidden or even currently inconceivable consequences.
My philosophy is that if it doesn't feel right then it isn't right and as you have posted then my guess is it doesn't feel right so I wouldn't go co to co.
Go down the DL route as per the Boxlot Plan.

 

[Craiglincs]

Be aware tide isn't a bank. There is also starling bank.