Limited but not limited

poormaria

Not sure if this was the right section to post in but I have a quick question

I have set up my own company and set my bank account up with the name as limited but I am not actually limited until next year. My accountant said I shouldnt have used that bank account but unfortunately (and stupidly) I didn't check. I was actually supposed to be limited immediately but things happened and I had to trade as a sole trader to begin with

Does anyone know the implications of this?

Pennywise

So you're saying you don't have a limited company, but somehow have managed to open a bank account in the limited company's name? Sounds like a bad bank error!

martinsurrey

Pennywise wrote: »

So you're saying you don't have a limited company, but somehow have managed to open a bank account in the limited company's name? Sounds like a bad bank error!

reading between the lines the Ltd exists and has a proper bank account, but the trade hasn't been transferred over to the Ltd's name yet so the OP is still trading and a sole trader.

If I'm right the OP will just have to transfer the funds out of the account, or show it as a creditor owed to a related party (Director), no real harm, no tax implications either...

bengalknights

Any funds within that account are solely the limited companies and not yours as a sole trader.

You would have to pay your self as a supplier as the easiest way to shifting the funds

poormaria

Martinsurrey - you are correct - I am a sole trader and yes the funds have been paid into wrong account - though it was for 2 months. I am not trading as a limited company, none of my paperwork says that I am ltd neither

So no tax implications is exactly what I needed to hear, I was concerned I would somehow have to start that company up

thanks for your replies

martinsurrey

poormaria wrote: »

Martinsurrey - you are correct - I am a sole trader and yes the funds have been paid into wrong account - though it was for 2 months. I am not trading as a limited company, none of my paperwork says that I am ltd neither

So no tax implications is exactly what I needed to hear, I was concerned I would somehow have to start that company up

thanks for your replies

No worries, in effect your company collected the cash on your behalf, they now owe you that cash.

VERY vanilla stuff.

poormaria

great - you have put my mind at rest