Closing limited company linked to personal debit account - will it freeze account

Smah13 · Jan 31, 2025

Hi everyone,

Before you judge me. Please note that im an idiot and i jumped into things hoping to make a better life.

I work in the railway and opened a limited company (CIS) in order to avoid going through umbrella. I stupidly linked the limited company to my personal debit account. After creating the company and receiving the UTR i received news that we aren't allowed to go through the CIS process and stay umbrella. Then when researching closure of a limited company i found that your bank account will also be frozen but it has to be a BUSINESS account. No trading was done at this time just regular pay slips through umbrella.

So my question was does anyone know if i close the limited company will my personal debit account be frozen? Its with santander.

Thank you.

Scalloway · Jan 31, 2025

Smah13 said:
I stupidly linked the limited company to my personal debit account

Do you mean you used a personal bank account for limited compnay transactions?

Smah13 · Jan 31, 2025

Scalloway said:
Do you mean you used a personal bank account for limited compnay transactions?

No limited company transactions were made into my limited company. The only transactions or money coming into my personal account are through umbrella pay which already has tax deducted.

Scalloway · Jan 31, 2025

If the current account is not in the name of the limited company then you have nothing to worry about.

DontAsk · Jan 31, 2025

Smah13 said:
linked the limited company to my personal debit account.

Linked in what way?

It's more likely Santander will get upset if they realise you are using a personal current account for business. Given the low number of transactions this is unlikely, but something to bear in mind.

Elliot Green · Jan 31, 2025

Linked how?

Daybooks · Feb 2, 2025

I don’t see how you can ‘link’ a company to a personal bank account stupidly or otherwise; not in any legal sense.

I would revisit the claim that you have linked it and question the basis you think it is linked.

eteb3 · Feb 7, 2025

For the legal theory in case it’s useful:

A company is a legal person.
When the company is struck off that person ceases to exist
So all its assets are ownerless
So they pass to the Crown immediately
So the bank freezes the account because only the Crown has a right to it.

So your personal account is irrelevant: *you* own that, and as far as we know you’re not dead. (although there’s been no reply in the thread for a while, come to think about it)

DoolallyTap · Feb 21, 2025

Don't bother to close it, just make it dormant, sort out the bank situation, and then close it.

ElyseBurnsHill · Feb 21, 2025

First of all, please don't consider yourself to be an idiot - you didn't know what you didn't know, and if anyone wants to judge you for that, good luck to'em!

Your personal bank account is in your personal name, so it has nothing to do with your Ltd company, even if you've linked them somehow by completing someone's form ready for payment etc. When people setup a business bank account with their Ltd company name on the paperwork, that account is owned by the Ltd Company, so when the Company is closed down, then the bank account will go with it, but only if the bank account is in the name of the business.

So, to clarify, if your personal account is in your name, then it will be safe when you close down the ltd company. If you're still worried, reach out to Santander and check with them that it's definitely a personal account in your own name.

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Closing limited company linked to personal debit account - will it freeze account

Smah13

Scalloway

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Scalloway

DontAsk

Elliot Green

Daybooks

eteb3

DoolallyTap

ElyseBurnsHill

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