Starling business banking is closing down my account as I have a 'separate entity'

zsazsa613

I opened a Starling Business account over a year ago, as a sole trader.  I thought that was the correct option. But Starling have now told me they are closing my business account next month as it's a separate entity.  (I gather they mean registered as a Ltd company with Companies House). Ok, I get it, but why not just offer me a link to open another account as a Ltd Company. Or deregister as a Limited company with HMRC.  Happy to do either as I don't need to be a Limited company. It was just that my local council wouldn't offer me an equipment grant unless I was.  I'm just a small coffee bar.  I was declined when I asked to open a sole trader account under my trading name.  No help, just a 'goodbye and good luck'.

Jenni_D

Not sure why you've posted this in the Site Feedback board. 🤷‍♀️

DullGreyGuy

zsazsa613 said:

I opened a Starling Business account over a year ago, as a sole trader.  I thought that was the correct option. But Starling have now told me they are closing my business account next month as it's a separate entity.  (I gather they mean registered as a Ltd company with Companies House). Ok, I get it, but why not just offer me a link to open another account as a Ltd Company. Or deregister as a Limited company with HMRC.  Happy to do either as I don't need to be a Limited company. It was just that my local council wouldn't offer me an equipment grant unless I was.  I'm just a small coffee bar.  I was declined when I asked to open a sole trader account under my trading name.  No help, just a 'goodbye and good luck'.

You dont need a link to open another one, you do that in the app.

If you dont realise you aren't self employed it does make you wonder what else you have been doing wrong in terms of tax returns, finance applications etc etc. You many want to consider double checking everything you've done since. 

You can naturally have both a limited company and separately operate as a sole trader and so it comes down to who you are naming as the contracting entity on paperwork etc. The fact Starling has caught you out would suggest you have been using the company in some places.

CKhalvashi

https://forums.moneysavingexpert.com/discussion/comment/80025206#Comment_80025206

It looks to me like this is probably the case too.

You can't in general run the same business under 2 entities. I only operate through Ltd companies these days as we've grown and moved further into professional services, but you need to understand you aren't self-employed in this case, the assets of the company are separate to your own assets, are taxed separately and have different filing requirements.