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CCCS & Business bank accounts. Please help!
pinkbabycakes
Posts: 85 Forumite
Hi All
Wonder if someone could help. Asking on behalf of someone else.
A member of the family is about to go onto a DMP with CCCS. He is self employed and runs his own business. His main worry, and question is... He currently has business accounts, in his company names. He knows that once he's on a DMP he needs to open a basic bank account. Can he run a business, in a company name through a basic account? How many can he have? He needs to keep work and personal separate. He has a business loan and overdaft, so there's no chance of keeping the accounts.
Sorry, not sure if that makes sense, but am trying to fond an answer for him as his telephone appointment with CCCS is not for over a week and him and his partner are very worried and stressed.
Many Thanks
Wonder if someone could help. Asking on behalf of someone else.
A member of the family is about to go onto a DMP with CCCS. He is self employed and runs his own business. His main worry, and question is... He currently has business accounts, in his company names. He knows that once he's on a DMP he needs to open a basic bank account. Can he run a business, in a company name through a basic account? How many can he have? He needs to keep work and personal separate. He has a business loan and overdaft, so there's no chance of keeping the accounts.
Sorry, not sure if that makes sense, but am trying to fond an answer for him as his telephone appointment with CCCS is not for over a week and him and his partner are very worried and stressed.
Many Thanks
0
Comments
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He needs to open a new basic personal account and a new business account then. Most banks will do a straightforward basic account in a business name, make sure he opens one with a different bank to the one he currently has the loan and overdraft with so they can't offset any money.
Businesses can have several accounts but would imagine that if he is unable to pay off the overdraft and loans associated with his current business accounts then they will probably close them down.0 -
Thanks podperson! I found this from Natwest (who he currently has no connections with)
https://www.natwest.co.uk/business/products/business-current-accounts/foundation-current-account.ashx
Would he be able to have one of those?0 -
He should be fine with any basic one that doesn't have an overdraft etc. A dmp is not a formal arrangement like an iva or bankruptcy so as long as long he is not taking out extra credit with the account then it should be fine.0
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If your concerned, speak to national debtlines sister company, business debtline. I am sure they could help.
Company name or not thou, as a sole trader he is liable for business debts and the business money is his asset. So if he owes money to a bank he also saves money with, offsetting is possible. - http://www.bdl.org.uk/Although no trees were harmed during the creation of this post, a large number of electrons were greatly inconvenienced.
There are two ways of constructing a software design: One way is to make it so simple that there are obviously no deficiencies, and the other way is to make it so complicated that there are no obvious deficiencies0
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