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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 10375
Experience:  FCCA FCMA CGMA ACIS
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I am trying to open a feeder account and was asked this

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Hello I am trying to open a feeder account and was asked this question, Is this a holding account and therefore the purpose of this account is to hold funds, on a temporary basis, that belong to someone else (e.g. your client, customer or another party)? Can you please let me know what it means
JA: Have you talked to a tax professional about this?
Customer: Mine is not back at work
JA: Anything else you want the Accountant to know before I connect you?
Customer: No

Hello, I am one of the experts on Just Answer and pleased to be ale to help you with your question.

It seems pretty straight forward to me. The bank, in their usual interfering way, are trying to find out what this account is to be used for. Just advise that it is intended to use your surplus funds.

Customer: replied 1 year ago.
The option open to me is a yes or no. Should I click on yes? I guess the thing that threw me off was the fact they mentioned "belong to someone else". My limited company is applying for a temporary account to receive a loan which would then be transferred to my limited company current account.

I would be inclined to key in 'No.'

Customer: replied 1 year ago.
Many thanks for your Advice!!!

Delighted to have been of assistance.

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