Creating a LTD company and Business Account quickly with bad credit

gurgi

I started working as a contractor or more precisely a sub contractor for a large NGO. This is the first time I have not been salaried and have a terrible credit rating though the contract will certainly improve that.

The problem is on the day I'm asked to submit an invoice I'm told I have to be registered as a Ltd company and that they can only pay into said companies bank account. I was using a dedicated personal account as a sole trader, I had set the account up specifically so I could keep it away from everything else so I didn't do something stupid like forget to pay tax.

Now I'm in a pickle, I'm certain I am unlikely to get a business bank account and I don't need any fancy features literally a drop place for being paid. I read on the forums that using NatWest online banking might be a way to get a basic bank account without going through to many credit checks, though there site implies otherwise, but I assume I have to be set as ltd before applying I was under the impression that was a simple process and a large amount of companies offering to do it on my behalf but some say the process can take weeks?

Could anyone offer advice on the best and more importantly quickest (baring in mind lack of cash as I haven't been paid its a nasty circl) to get out of this pickle?

Horace

Re the limited company - I would speak to an accountant as there are implications with regard to corporation tax and vat etc.

I cannot comment on Natwest because I dont bank with them, however, I have a fairly basic account with lloyds TSB for my business, no overdraft facilities but I could have one if I wanted but I dont.

If you are employed as a sub contractor surely they knew that you werent a limited company at the time they employed you? You could submit an invoice as a sole trader and they could then pay money direct into your business account. Could you change the second personal account into a business account?

Wutang_2

The Natwest Foundation business account has 2 years free banking and you'll be accepted whatever your credit history...

gurgi

The ltd only clause was never mentioned during the tender process otherwise I would have looked into the whole process earlier, and gone visited an accountant when I had savings in the bank. It only came up as I submitted an invoice my intention ironically was to use some of the money to talk to an account about if I should be working as a ltd company.

They seemed pretty adamant that I had to be a ltd company before they would pay me and threatend to terminate my contract if I didn't sort it out quickly though I can find no reference to this clause in my contract. Either way I don't want to lose the contract.

I guess my question is can I use the off the shelf formation companies and apply for a bank account then get an accountant involved or will I have done irreparable damage doing such a thing?

gurgi

closed wrote: »

umbrella company?

I don't understand?

zenmaster

Umbrella Company.

This is by far the easiest way to go about it, unless you really want a limited company.

Here is a list of such companies associated with the Professional Contractors Group. Check their fees. A reputable one should not cost much more than it would cost to use an accountant.

If you do want to go the Ltd Co route you can set up in minutes online. We have used this one before without any problems.

gurgi

thank you I will do some more research and chat with natwest as well.