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Posted Wed, 19 Jul 2023 11:44:00 GMT by
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.
Posted Thu, 27 Jul 2023 14:00:47 GMT by HMRC Admin 8 Response
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.
Posted Sat, 20 Jan 2024 22:11:58 GMT by
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'?
Posted Tue, 23 Jan 2024 11:50:05 GMT by HMRC Admin 19 Response
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.
Posted Tue, 19 Nov 2024 13:52:20 GMT by law88mph
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?
Posted Thu, 21 Nov 2024 15:00:51 GMT by HMRC Admin 20 Response
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.
Posted Fri, 22 Nov 2024 13:59:56 GMT by law88mph
Fantastic, thanks for the clear and complete response

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