Reduce Bank Charges

[Kuler]

I want to reduce the bank charges for my wife's small business, which annually amount to around £1,000 with the Natwest.
My idea is to bank everything into a personal Halifax account then withdraw that amount by way of a single cheque which is then presented to the NW.
Are there any flaws in this idea ?
Thanks, K

 

[Ian J]

It probably won't take Halifax long before they spot what you are doing and up your charges to business level accordingly

 

[Clare@ClarityTaxation]

Is it a limited company? If so you need to keep the bank in the business name or you could have tax issues in relation to director's loans.

Can you not swap to a different bank who provide free banking for a year or so?

 

[Nord20]

Does the business owe you/your wife any money (i.e. Director's loan)?

If so, you could do a loan repayment and bank that in your personal account. Should the business then need another loan, you could transfer some money from your personal account to your business account.

 

[MyAccountantOnline]

I want to reduce the bank charges for my wife's small business, which annually amount to around £1,000 with the Natwest.
My idea is to bank everything into a personal Halifax account then withdraw that amount by way of a single cheque which is then presented to the NW.
Are there any flaws in this idea ?
Thanks, K

What are you paying for to be paying a £1,000 a year?

 

[Paul Norman]

Without knowing your transaction volumes, it is hard to say whether £1000 per year is a lot, or not. I would imagine you would need a fairly large number of transactions to get to that amount with typical HSBC charging structures.

Assuming, therefore, that there are a lot of transactions, Halifax will, as per the post above, be all over it within a very short period of time. Banks do not like people using personal (often free) accounts for business transactions, and it is usually against the terms and conditions of a personal account. Which means they can either charge you business charges, or just close the account.