Tide Account + Ltd Business + Moving Money

GreenSaints · 25 July 2017 at 11:22AM

Hi all

So I've recently (in the last two weeks) started my own business and I've even made some sales! :j

I've set up a Tide business account, but have a few questions which I hope someone can help me with please:

1. I have cash from the sales I have made which needs going into this account. As Tide doesn't take cash payments, they have said bank transfer it from my personal account. Is this OK to do considering I'm a limited company?

2. I have a pot of money which I have for expenses, however I haven't used it really, and made payments from my personal account. I know want to transfer the money to me for the money my business 'owes' me. How do I do that?

3. I need to move that pot of money into my Tide account, again how does it work as I'm a limited company

Thank you in advance

00ec25 · 25 July 2017 at 11:52AM

this is a money saving website but rather sounds like you have chosen the wrong bank account for your needs just to save a few£ in bank charges? Nat West charge us £6 per month flat fee but lower transaction fees than you are paying with Tide

1. you have no option but to use your personal account unless you wish to "hide" your cash sales? (Joke!). How do you record your sales in the company accounts? Do you have sales invoices ? if yes then it should be relatively easy to show the link between money from your personal account clearing the sales invoice. Not ideal, but needs must.

2. You need to use an expense claim process. The simplest way is to set yourself up in your purchase ledger as a supplier and then post your expenses claim the same as you would with a supplier invoice. You then pay the expense claim as you would any other supplier invoice. The expenses claim can be a simple list of the totals you spent but has the associated receipts attached to it - yes that does mean it should exist as a hardcopy document in your accounting records. The claim from should have sub totals showing the split of the total by whatever expenditure categories you use in your accounts ledger.

3. not sure what you mean. It appears you have a single bank account so moving the "pot" into it means it will disappear into the total balance in the bank account. Where did the money which forms the pot come from in the first place? What do you intend to use it for once you have paid it into the Tide account? If the money is not from your business sales, and is instead simply personal money that you originally earmarked to cover business expenses, then it will be a director's loan account entry if you now pay it into the business because it will be "capital introduced"

do you not have an accountant yet?

phill99 · 25 July 2017 at 12:03PM

You are acting in a very amateur way. Firstly get an accountant. Secondly get a bank account that takes cash payment, even if it is just via the cash point machine (like Santander Business Banking). Its evident that the bank account you have is not suitable for your needs.

GreenSaints · 25 July 2017 at 1:12PM

@00ec25 - I thought this was the Small Business forum, hence my post. Apologies if this is incorrect.

@phill99 - I have just started (2 weeks) so I will be amateur by nature and for some time.

Sounds like I need a new account which I'll set up

00ec25 · 25 July 2017 at 3:50PM

GreenSaints wrote: »

@00ec25 - I thought this was the Small Business forum, hence my post. Apologies if this is incorrect.

? you misunderstand my point, yes this is the small business board on the moneysavingexpert forum. People who post here are keen to save money, there is however a time when buying cheap may not be the best solution.

Your issue appears to be that in trying to save money you have in fact ended up with the wrong account which does not provide value for money to you as, by saving a few £ in headline charges, you have an account which is unsuitable for your needs and means you must do inefficient work-arounds to bank your money.

surprised you purchased a Ltd Co without lining up an accountant for it already. There is little point in being amateur for 2 weeks if that means you make lots of mistakes in your company accounts which then needs the accountant to spend time (at your cost) unpicking and correcting at a later date. Much better to see an accountant asap, have an initial discussion and get a steer from them on how to operate your Ltd Co.

fishybusiness · 25 July 2017 at 4:28PM

Get yourself an accountant before it all goes wrong.

Ltd Co's need a significant input to paperwork and cash trails. You'll need to be aware of the Directors Loan account by the sounds of it, and know where and how to place your money.

Right at the beginning of a company's life you can get away with it, no one is checking what you are doing but it will come back to bite in a year for your company statement, and 21 months time when accounts are due.

Another vote for Natwest, we have opened an account with them this year, easy banking.

Slinky · 27 July 2017 at 5:46PM

I've been running my ltd company for 12 years without an account that takes cash, which I occasionally receive from customers. I use Sage for my accounts. What I do is 'receive' the cash payment from the customer into the account designated Petty Cash. Every now and then when there's a decent amount I pay this 'Petty Cash' into my personal account and pay an equivalent personal cheque into my business bank account. On Sage I then effect a transfer between Petty Cash and the business main bank account. Job done.

TheTracker · 1 August 2017 at 12:33PM

Slinky wrote: »

I've been running my ltd company for 12 years without an account that takes cash, which I occasionally receive from customers. I use Sage for my accounts. What I do is 'receive' the cash payment from the customer into the account designated Petty Cash. Every now and then when there's a decent amount I pay this 'Petty Cash' into my personal account and pay an equivalent personal cheque into my business bank account. On Sage I then effect a transfer between Petty Cash and the business main bank account. Job done.

+1

Tide is an excellent bank account for many new and small businesses. I'm surprised they have not been more mentioned on MSE. I use them myself. So easy to set up an account, and multiple accounts. A million miles from every other business bank experience I've had (and I've used most of them).

20p per transaction for funds received or sent (BACS are free, FPS not), £1 for ATM (I never make those), and £5 for replacement card (shouldn't need that). £100k balance limit though. No other charges. In my business, that's cheaper than using a high street bank.

dee122323 · 26 March 2018 at 12:09PM

i would advise anyone to stay well away from tide, over 3000 of my money went missing tried to get it back and was completley ignored theyve been doing this to quite a few people judging by the reviews on trust pilot

Tide Account + Ltd Business + Moving Money

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