Best Business Bank Account

adypem

Hi,
I don't think this post is in the correct place, but her goes.

I have recently formed my own Ltd company that I will use for my IT consultancy work, and I am looking for the best business bank account.
I have been recommended a company called Carter Allen, but there appears to be a major back log with them as people move away from MSC to their own Ltd's. My current account is with HSBC and I would like easy online transactions.

All recommendations welcome.

dejongj

I recently enrolled with Alliance & Leicester for IT Consultancy work...Mainly because I hate having to pay bank charges which you don't with them, and their Interest rate (VAT, PAYE, CT, etc...) is as high as you can get with a commercial bank...

Applied online which is easy as well, activation did take longer than expected, but was done in about 10-15 days....

Good feature I like as well is that you can do CHAPS payments online as well if you need to....

adypem

dejongj wrote: »

I recently enrolled with Alliance & Leicester for IT Consultancy work...Mainly because I hate having to pay bank charges which you don't with them, and their Interest rate (VAT, PAYE, CT, etc...) is as high as you can get with a commercial bank...

Applied online which is easy as well, activation did take longer than expected, but was done in about 10-15 days....

Good feature I like as well is that you can do CHAPS payments online as well if you need to....

Thanks for that, I have had a quick look at A&L, when you say that the interest rate is high for VAT, PAYE etc.. the purpose of the account is to recieve payment from accountancy firm who raised the invoice. Then all I would want to do is leave in a set amount and draw my wages/dividends.

dejongj

adypem wrote: »

Thanks for that, I have had a quick look at A&L, when you say that the interest rate is high for VAT, PAYE etc.. the purpose of the account is to recieve payment from accountancy firm who raised the invoice. Then all I would want to do is leave in a set amount and draw my wages/dividends.

But what about the amount you'll have to pay in corporation tax, and if you are on quarterly VAT returns, or for when you have to pay the PAYE....Wouldn't you rather have an instant access account and let that amount of money earn some interest?

Just like when you pay yourself dividends, setup a personal savings account in which you can immediately put the taxable amount away so you can't touch it....And let that money work for you....As what you earn in April this year isn't due for tax until January 31st 2009!!!!! Would be a shame to let go to waste....

adypem

dejongj wrote: »

But what about the amount you'll have to pay in corporation tax, and if you are on quarterly VAT returns, or for when you have to pay the PAYE....Wouldn't you rather have an instant access account and let that amount of money earn some interest?

Just like when you pay yourself dividends, setup a personal savings account in which you can immediately put the taxable amount away so you can't touch it....And let that money work for you....As what you earn in April this year isn't due for tax until January 31st 2009!!!!! Would be a shame to let go to waste....

I might have mis understood your initial response, is there a linked savings account with it ?
My intention was to just leave the corp tax money etc in the current account, is that a bad thing

dejongj

adypem wrote: »

I might have mis understood your initial response, is there a linked savings account with it ?
My intention was to just leave the corp tax money etc in the current account, is that a bad thing

Nope, not a bad thing at all if the current account pays you interest! Sure the interest is taxable but it doesn't cost anything to earn...So 'free' money is always welcome I would say....And yes you can just tick the box on the online application form to state you want a savings account as well...

It's 4.64% in the instant access account (less than £50k)...Compared to
Natwest 2.78%
HSBC 2.80%
Loyds 2.84%

Then there is Abbey National as well, 3.25% upto £9999, 4.25% upto £999999. But they don't have online application forms....So being in that business They don't get my business....

Also one thing to watch out for is that some commercial banks even charge for receiving BACS payments!!! That's how most agencies pay, now how daft is that!!

adypem

dejongj wrote: »

Nope, not a bad thing at all if the current account pays you interest! Sure the interest is taxable but it doesn't cost anything to earn...So 'free' money is always welcome I would say....And yes you can just tick the box on the online application form to state you want a savings account as well...

It's 4.64% in the instant access account (less than £50k)...Compared to
Natwest 2.78%
HSBC 2.80%
Loyds 2.84%

Then there is Abbey National as well, 3.25% upto £9999, 4.25% upto £999999. But they don't have online application forms....So being in that business They don't get my business....

Also one thing to watch out for is that some commercial banks even charge for receiving BACS payments!!! That's how most agencies pay, now how daft is that!!

Excellent reply and thanks for all your info.:T
Can I go off topic and ask you a couple of questions ?

Who, if anyone do you use for your personal indemity insurance, liability etc ?

I am until the end of play today operating through a MSC with Filetravel who offer all the insurance needed, however come the 6th I will start trading with my own Ltd and need to be seen as "Managing my own business"

I am looking at dropping Filetravel and hoping to swtich to a local acocuntant.

Thanks in advance

dejongj

adypem wrote: »

Excellent reply and thanks for all your info.:T
Can I go off topic and ask you a couple of questions ?

Who, if anyone do you use for your personal indemity insurance, liability etc ?

I am until the end of play today operating through a MSC with Filetravel who offer all the insurance needed, however come the 6th I will start trading with my own Ltd and need to be seen as "Managing my own business"

I am looking at dropping Filetravel and hoping to swtich to a local acocuntant.

Thanks in advance

Oops! Good OT question, but best leave it there! I've been through an umbrella solution before....And haven't setup the insurance thing yet, I know my contract is IR35 ok, it better be as it is with HMRC But best to check out the PCG website....

WHA

adypem wrote: »

I have been recommended a company called Carter Allen, but there appears to be a major back log with them as people move away from MSC to their own Ltd's.

We've not experienced a "major backlog" with our Cater Allen applications. Sure, they used to take about a week and have been taking about two weeks during March, but generally, they''re going through fast enough.

adypem

WHA wrote: »

We've not experienced a "major backlog" with our Cater Allen applications. Sure, they used to take about a week and have been taking about two weeks during March, but generally, they''re going through fast enough.

WHA, I've now found out that the problem didn't appear to be at the Carter Allen side, all my documents have been mislaid by FileTravel. As a result I am hoping to kick FileTravel into touch, get my own local accountant and open my own business account with A&L.

The only draw back with Carter Allen is the absense of internet banking which is something I would like

johnllew

adypem wrote: »

I might have mis understood your initial response, is there a linked savings account with it ?
My intention was to just leave the corp tax money etc in the current account, is that a bad thing

The A&L Free Business Current Account pays 0.25% AER. It is the linked Business Instant Reserve Account that pays 4.64% AER. You can make BACS payments (to your personal account or to pay bills etc) from both but only the CA has a cheque facility.

The A&L CA has a £5 monthly charge if you don't pay in more than £1000 each month. Because my company's income is sporadic, I opened an Abbey Business CA (no monthly charges) so I can pay cheques if necessary but keep ready money in the A&L Business Reserve. Longer term savings are kept in the Northern Rock Business Reserve paying 5.32% AER on £10,000+ though still with instant access.

http://www.northernrock.co.uk/html/savings/savings.htm