Sharing one bank account for multiple companies

[youngken]

I have 3 different companies in the same business nature, but the companies share one bank account.
Is it possible to share one bank account across companies?
Any other options?

 

[Newchodge]

I have 3 different companies in the same business nature, but the companies share one bank account.
Is it possible to share one bank account across companies?
Any other options?

Do you mean companies? As in limited companies? Or do you mean businesses, as in sole trader with different brands? if the former no and your option is to open an account for each company. If the latter, no problem as all the businesses are you.

 

[Paul Norman]

I agree with the answer above, but would add that it sounds like a accounting nightmare on top of all the other considerations

 

[Paul Kelly ICHYB]

Not only is it an accounting nightmare, HMRC might see it as splitting if the combined turnover is £85k a year!

 

[WaveJumper]

And I wonder what your accountant thinks about it

 

[youngken]

Do you mean companies? As in limited companies? Or do you mean businesses, as in sole trader with different brands? if the former no and your option is to open an account for each company. If the latter, no problem as all the businesses are you.

3 limited companies use the same bank account with ledger.

 

[Paul Kelly ICHYB]

NNNNNOOOOOOOOOOOO

 

[Lisa Thomas]

Oh Dear.

I suggest you get this changed as soon as possible. Do the companies have an accountant/s?

 

[WaveJumper]

Oh Dear.

I suggest you get this changed as soon as possible. Do the companies have an accountant/s?

Im guessing not

 

[Mark T Jones]

Take a step further back and ask why you have 3 limited companies doing essentially the same thing.

 

[MyAccountantOnline]

I have 3 different companies in the same business nature, but the companies share one bank account.
Is it possible to share one bank account across companies?
Any other options?

I suspect it would breach your bank conditions but certainly from an accounting view it's really not wise.

If you've got 3 limited companies each one should have a bank account in its own name. Mixing and matching is a recipe for disaster.

 

[youngken]

Sorry everybody, I had just changed a little bit in position.
A company had launched 3 off plan development projects, the company had hired a seller solicitor to collect buyer's fund in the solicitor's client's account. The fund was going to pay for the construction cost for 3 developments. The solicitor operated separate ledgers for each matter. Is that legal?

 

[Newchodge]

Sorry everybody, I had just changed a little bit in position.
A company had launched 3 off plan development projects, the company had hired a seller solicitor to collect buyer's fund in the solicitor's client's account. The fund was going to pay for the construction cost for 3 developments. The solicitor operated separate ledgers for each matter. Is that legal?

Did you just re-read the question?

 

[Lisa Thomas]

I'm confused - so there isn't three companies with one bank account, this is actually just a Solicitor using 3 separate ledgers for 3 separate projects in their client acc?

 

[youngken]

Yes, but is it viable?
A problem has happen. The Company has improperly used this model to create Inter Company's Loan by shifting the ledger privately.

 

[Paul Kelly ICHYB]

Yes, but is it viable?

Don't you know a solicitor you can ask?

 

[youngken]

Another question is, could the company easily borrow money from bank or financial institution on the name of the solicitor's client account?

 

[japancool]

Yes, but is it viable?
A problem has happen. The Company has improperly used this model to create Inter Company's Loan by shifting the ledger privately.

It's not an inter-company loan is it? It's money being shifted from one project to another within the same company.

 

[youngken]

The flat purchasers put the deposit into a specific development to the solicitor's client account (escrow account). The fund can only be released for the building cost only and should not be shifted to another project.

 

[youngken]

3 different companies for 3 different developments. The solicitor's client account hold all of the fund.