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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Hi, we opened a limited company. The company now is going to

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Hi, we opened a limited company. The company now is going to trade and receive revenue soon. However, the bank account is not yet ready to get the funds. We are thinking of using our director's bank account to receive that funds on behalf of the company and will transfer to the company bank account when it is available. Can we do that as a solution? our director is afraid of his personal income tax will be affected because of the money of the company come to his bank account. Can we claim it to HMRC that amount is the company money and we will pay Corporate Tax for it? Many thanks
Submitted: 4 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 4 years ago.

Hello, if you have any questions or need further clarification after reading my answer please let me know.

 

Thank you for your question...

 

There are times when it takes longer than usual for company bank accounts to become operational because of credit checks etc.

 

In those circumstances it is possible to use personal bank account as a stop gap solution (a very short term solution). You should document the arrangement in a board meeting and minute the agreement. This would alleviate any issues with HMRC in the future. You should transfer those funds from the director's account into company bank account as soon as the company account is opened.

 

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