Natwest Foundation Rejection

[Deleted User]

A cashminder account is for personal use. Annoying the Co-Op is a bad plan! I'm not self-employed, I'm a director of a limited company, which needs a business account. If it was alright for people in my position to conduct business through a personal account, there'd be no such thing as a Foundation option...

Forgot to answer the question earlier; nope, I've never had an account with Natwest.

[Deleted User]

Also, VAT refunds can only be paid to an account in the business name. Apparently.

kepar

A cashminder account is for personal use.

Actually not true. Any account can be used as a business account according to the HMRC website and as long as you can keep personal and business info separate it is not a problem.

That info is probably true for a sole trader and not a limited company though.

Is there any reason that you cannot start your business as a sole trader and transfer into a limited company when you are established and can get a business account.

Are you VAT registered then? How are you managing your banking with a turnover of over £55k already?

wildheart83

It's not HMRC that's the problem, IIRC it's in the t&cs of the Cashminder account, according to other threads on the same subject.
HMRC probably don't care which account is being used but the Co-op will just shut the account down (and any other personal accounts held I would presume)

BUT I don't have the t&cs for the Cashminder account and may be wrong.

JCS1

kepar wrote: »

A cashminder account is for personal use.

Actually not true. Any account can be used as a business account according to the HMRC website and as long as you can keep personal and business info separate it is not a problem.

That info is probably true for a sole trader and not a limited company though.

Is there any reason that you cannot start your business as a sole trader and transfer into a limited company when you are established and can get a business account.

Are you VAT registered then? How are you managing your banking with a turnover of over £55k already?

Current VAT registration threshold is £73k, but this is when you must register. You can have turnover of a much lower amount and still register voluntarly - and there can be benefits. If your sales are zero rated but purchases standard rated, you get to claim back the VAT - farming is a good example, but there are other industries where it's a similar situation.

[Deleted User]

Guys, I'm not entering debate. My business details are just that, my business. I'm sure there are plenty of others here to engage in forum fisticuffs with.

The purpose of this thread is just wanting to hear tips from people so I may try and convince Natwest should I be declined again, as I've been discharged a while longer than the other Foundation account holder here. I've entered all the relevant details regards this.

frosty1970

Item 1.3

http://www.co-operativebank.co.uk/cfscombi/pdf/cashminder_terms_and_conditionsjan2012.pdf

[Deleted User]

Oh gosh, look, I knew what I was talking about!

wildheart83

I'm sorry I've forgotten, have you lodged an appeal already? If not, would it be worth going to a different branch to see if you get someone with more experience?
Sorry I can't offer any advice, but I agree that opening a cashminder account for the business is too great a risk if your personal account is there also.

wildheart x

kepar

frosty1970 wrote: »

Item 1.3

http://www.co-operativebank.co.uk/cfscombi/pdf/cashminder_terms_and_conditionsjan2012.pdf

I know that, every current account t's & c's will say the same, but I am using my second account as one.

But I am only a sole trader not a limited company.

OP are you setting a business up or are you already operating?

Surely you should have got an account set up before starting a limited company. If you are already operating how do you bank now?