How to protect Ltd Co Assets

thunderlizard

I'm getting the impression that limited companies with turnover less than £1m are eligible, based on the definition of "small business" given in the FSA handbook:

http://fsahandbook.info/FSA/html/handbook/COMP/4/2#D7

dunstonh

thunderlizard wrote: »

I'm getting the impression that limited companies with turnover less than £1m are eligible, based on the definition of "small business" given in the FSA handbook:

http://fsahandbook.info/FSA/html/handbook/COMP/4/2#D7

Good find. Its surprising how difficult it has been to find any reference to small/large company. So, this link says:

large company

a body corporate which does not qualify as a small company under section 247 of the Companies Act 1985.

That act says:

Small company
1. Turnover Not more than £2 million
2. Balance sheet total Not more than £975,000
3. Number of employees not more than 50

annie42

Section COMP 4.2.3 referred to in the handook says" A person who is a small business is an eligible claimant". I run a small Limited Company and am interested in the post as my personal account and Company account are with the same bank. My understanding is a company is a seperate legal entity and not a "person" as described in the handbook section. I have asked my bank if my company account is protected but have not received a reply so far. Apologies if I seem a bit pedantic about the wording but I am a bit confused by it.

dunstonh

annie42 wrote: »

Section COMP 4.2.3 referred to in the handook says" A person who is a small business is an eligible claimant". I run a small Limited Company and am interested in the post as my personal account and Company account are with the same bank. My understanding is a company is a seperate legal entity and not a "person" as described in the handbook section. I have asked my bank if my company account is protected but have not received a reply so far. Apologies if I seem a bit pedantic about the wording but I am a bit confused by it.

A person would be sole trader or partnership.

It is confusing so no need to apologise. The complete lack of easy to understand factual data from either the FSCS or FSA is very poor.

silvercar

thunderlizard wrote:

I'm getting the impression that limited companies with turnover less than £1m are eligible, based on the definition of "small business" given in the FSA handbook:

http://fsahandbook.info/FSA/html/handbook/COMP/4/2#D7

dunstonh wrote:

Good find. Its surprising how difficult it has been to find any reference to small/large company. So, this link says:

large company

a body corporate which does not qualify as a small company under section 247 of the Companies Act 1985.

That act says:

Small company
1. Turnover Not more than £2 million
2. Balance sheet total Not more than £975,000
3. Number of employees not more than 50

I'm confused. 2 Questions:

1. Would a limited company with turnover between £1m and £2m be covered?

2. How safe is NatWest?

CuggyBear

I believe the term "person" in this context is confusing. Look at the definition of the term on FSA website:

http://fsahandbook.info/FSA/glossary-html/handbook/Glossary/P?definition=G869

a person includes "a body of persons corporate or unincorporate" which by my understanding includes a Limted Company.

As a Limited Company is a person, it is covered. Exclusions from the FSCS include "Firms" of which the only vaugly relevent entity (from a Limited Company perspective) seems to be "authorised persons" defined as:

http://fsahandbook.info/FSA/glossary-html/handbook/Glossary/A?definition=G88

which I read to be an exclusion for specific types of banking entities.

To cut a long post short, in the case of most small Limited Companies, from an FSA perspective I believe person = individual or Limited Company.

silvercar

I just went into HSBC to inquire about openning a second business account (safer to spread funds around) and was told it is against the law to have a limited company account with 2 different banks

bartsimpson

silvercar wrote: »

I just went into HSBC to inquire about openning a second business account (safer to spread funds around) and was told it is against the law to have a limited company account with 2 different banks

!!!!!!???????????

can't believe this is true and my accountant has told me it's possible to do this. maybe this is only true for savings accounts?

anyone care to clarify?

shellbell63

We had call from accountant today, advising us to move funds into personal accounts etc until the dust settles. His opinion is either we can move back at a later date or absolute worst case scenario is 25% tax as directors loan.
Been scrambling around trying to dig up old accounts we have & never use to 'spread the load' as it were.

Bit scary though, when these guys are worried about business funds.

shellbell63

silvercar wrote: »

I just went into HSBC to inquire about openning a second business account (safer to spread funds around) and was told it is against the law to have a limited company account with 2 different banks

We have business savings with Lloyds & A & L. Only 1 current acc though, so don't know if its current you can't duplicate?