How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask J.Ustinovskaya Your Own Question
J.Ustinovskaya
J.Ustinovskaya,
Category: Law
Satisfied Customers: 23
Experience:  Expert
112772957
Type Your Law Question Here...
J.Ustinovskaya is online now

I opened a limited company in the uk and I continued using

This answer was rated:

Hello, I opened a limited company in the uk and I continued using my sole trader business bank account intead of opening a company bank account. I am now closing the ltd company to carry on as sole trader. Am I correct to think that, because it is not a company bank account, I am ok to keep using the sole trader business bank account and the funds in it won't be transferred to the Crown?Thank you

Good morning. Thank you for your query. I am Julia, a solicitor, and will be assisting you today.

The fact that you continued using your sole trader bank account means that you kept your sole trader's business activity and may need to pay taxes as a sole trader. However, if your limited company concluded contracts where it was indicated that all payments shall go to your individual business account, then it is fine and such activity will not be considered as the sole trader's activity, but your limited company's instead. In this case your limited company is paying taxes. You can close your limited company by sending form DS01 to the Companies House at any time when you wish and continue as a sole traded only. There is also an automatic way of being removed from the registry - if your company does not file accounts for 3 months, the register will automatically strike off our company from the registry.

Hope this helps. Please feel free to ask further questions if you have any.

Customer: replied 11 days ago.
Many thanks for your useful and detailed response. That sounds great. Am I correct to think that the funds in the sole trader bank account won't be transferred to the Crown one I get the ltd company struck off? Thanks again!

The company has a separate personality from you. You and the company are two absolutely different entities. There is no link between the company closure and your personal business account. I do not believe the money from the sole trader's account will pass to the Crown for the reason that your limited company is struck off.

Customer: replied 11 days ago.
Fantastic, many thanks for your quick replies. One final thought, the name of my business account is the name of my company and not my own. Do you think there'll be any problems with this? (My business will keep the name as sole trader business after the company is struck off). Thanks again!

If your company has a business account you need to withdraw money from there before the company's closure.

Customer: replied 10 days ago.
Fantastic thank you!! One last questions which is on a different subject. I am also a member of a business partnership and my partner is retiring from the partnership. We are negotiating a Retirement Agreement and I wanted to know whether the terms "dissolve a partnership" and "dissolve a business" are the same or two different things? Thanks!

If a partner retire from a partnership, this will be a “technical” dissolution but the business will still carry on under a new partnership arrangement. In effect, the old firm has dissolved and been replaced by a new firm of partners which will take on the assets and liabilities of the old firm and the business continues without a break. Hope this helps. If you would like further explanation, could you please create a new topic indicating at the beginning that this question is for me? Thank you.

J.Ustinovskaya and 4 other Law Specialists are ready to help you