FSCS Compensation Scheme and Limited Company Accounts

isofa

If personally you have up to 85K with a bank, this is covered by the FSCS scheme.

Now say, you are also the director of a limited company and this company has a bank account/deposit account with up to 85K in: is this treated as a separate entity and protected separately up to an additional 85K limit, or as you are the director and also hold 85K personally, would none of the company's money be protected, as your protection has also been used up "personally"?

I'm specifically asking about limited companies, not sole traders or LLPs.

The info from the FSCS doesn't mention it directly, unless I've missed a link:
http://www.fscs.org.uk/what-we-cover/eligibility-rules/compensation-limits/deposit-limits/

Any thoughts / experience?

ChiefGrasscutter

A company is a totally separate entity so would be covered in its own right.
BUT note that ONLY small companies are covered.
I can't remember how a 'small company' is defined with repsect of the FSCS scheme
I think is a combination of No of employees, turnover, balance sheet.
Larger companies are not covered.

isofa

Thanks ChiefGrasscutter, I did think it *should* be like that, after all Ltds are separate legal entities, but the general vagueness I read on their website didn't inspire confidence. We are in the small companies section for everything else, so I'd hope (although will check what qualifies as "small" with FSCS...)

Reaper

You have to meet at least 2 out of these 3 criteria:

• have annual turnover of less than £6.5m.
• have a balance sheet of less than £3.26m.
• have fewer than 50 employees.

See section 12 here:
http://www.fscs.org.uk/what-we-cover/questions-and-answers/qas-about-deposits/