Limited company operating through a separate current account

I have received mixed advice over the phone regarding a limited company bank accounts. Is it ever possible for a limited company to operate through a distinctly separate current bank account, rather than a standard business bank account if all funds going in and out are for business purposes only? Previous advice has been that this is legally allowed as the filing is kept separate and is not for personal funds.

Hi,
As a separate leagl entity, a company can opertae through more than one business account.
We would add that there is a legal requirement to keep your personal and business finances separate.
Thankyou.

Thanks for the reply. However, it doesn't entriely answer the specifics of the question. Bearing in mind that no personal finances would pass through the account specific to the business, legally could this account be a standard current bank account, and not specifically what a bank terms 'business account'?

Hi,

For limited companies, you are required to open a business bank account to comply with the legal duties of running a limited company.

Thank you.

Please can you fully clarify the above? Is a limited company allowed to use a 'personal current account' for its business finances providing no personal finances pass through the account? Or is it a legal requirement for a limited company to use an official 'Business Bank Account' as defined by the bank?

Hi law88mph,
It is a legal requirement that a limited company has its own business bank account.
This is because the company is its own legal entity with its own obligations and finances.
Personal bank accounts typically have terms and conditions that prohibit their use for business purposes.
Violating these can lead to the account being closed by the bank.
If your bank discovers you're using a personal account for business purposes, they can close your account.
You might face audits, penalties, or interest on unpaid taxes if HMRC deems your tax filings inaccurate due to mixed finances.
For further advice it is recommended you speak to an accountant or your bank.
Thank you.