Business savings

soozywoozy

The company that i work for currently has £250k in the bank, if the bank sinks we lose all the money i understand. Do we have to open separate bank accounts for the business and save £50k in each?

Robert_Sterling_3

Do it now. :easter:

Rafter

business savings are not guaranteed by the FSCS.

You need to make sure you money is in a bank that is 'too bid to fail' Nat West, Barclays, HSBC and Lloyds would all qualify as being in this camp.

You might want to look at whether having that much cash in the business is both tax efficient or safe though?

R.

I,_Brian

soozywoozy wrote: »

The company that i work for currently has £250k in the bank, if the bank sinks we lose all the money i understand. Do we have to open separate bank accounts for the business and save £50k in each?

Definitely worth considering placing it in "safe investments" or else pay a big fat dividend, buy new premises, etc.

While it's unlikely that the situation will arise any time soon of a bank collapsing, risk management at this stage is prudent.

nrsql

Rafter wrote: »

business savings are not guaranteed by the FSCS.

R.

Small businesses are covered.
£250k balance would qualify.

456789

nrsql wrote: »

Small businesses are covered.
£250k balance would qualify.

link please?

soulsaver

nrsql wrote: »

Small businesses are covered.
£250k balance would qualify.

Small businesses ARE covered by FSCS upto £50k - as per individual.
http://www.fscs.org.uk/consumer/key_facts/limitations_of_the_scheme/

There are official definitions of small business based on turnover & number of employees issued by co's house & HMRC but needs FSCS to confirm their definition. Worth asking if a definition cannot be found on their site:


In the UK, sections 382 and 465 of the Companies Act 2006 define a SME for the purpose of accounting requirements. According to this a small company is one that has a turnover of not more than £6.5 million, a balance sheet total of not more than £3.26 million and not more than 50 employees. A medium-sized company has a turnover of not more than £25.9 million, a balance sheet total of not more than £12.9 million and not more than 250 employees. It is worth noting that even within the UK this definition is not universally applied.

nrsql

google
small business fscs guarantee