Cheaper business banking advice please

Alison-J_2

Hi
I have been with Lloyds TSB for years with my business account. On average I get charged £40 on o/d and £50 charges a month. I am now out of my overdraft and want to change banks to a cheaper one. The problem is that we have a busy post office in the town which makes it difficult to bank with A&L and the Co-op the ones that offer free banking. Any ideas as to how to play things with the bigger banks on the high street to get some free banking for a business that takes about 55k a year?

jonesMUFCforever

You pay LTSB £600 charges a year - you claim £600 as legitimate business expenses in your accounts - result - cost you nil.

BlondBoy

ejones999 wrote: »

You pay LTSB £600 charges a year - you claim £600 as legitimate business expenses in your accounts - result - cost you nil.

Ermm.... no.

The £600 can indeed be offset as a legitimate business expense and therefore not part of your profit nor subject to tax. But it's £600 off your profit. If that £600 wasn't spent and added to profit. you would have to pay £132 tax on it at the standard rate. So assuming a standard rate, it still costs you £468.

Better admittedly, but a long way from 'nil'.

stamford

ejones999 wrote: »

You pay LTSB £600 charges a year - you claim £600 as legitimate business expenses in your accounts - result - cost you nil.

Go to the front of the line for moronic post of the month. OP still has to make £600 to claim it back.

For free/cheap business banking have a look at Abbey

gt94sss2

Alison-J wrote: »

Any ideas as to how to play things with the bigger banks on the high street to get some free banking for a business that takes about 55k a year?

All the big banks offer new business (or those switching accounts to them) free banking for a period of time.

For instance, HSBC is offering upto 2 years of free banking..

Regards
Sunil

gt94sss2

stamford wrote: »

For free/cheap business banking have a look at Abbey

I would not recommend Abbey to anyone at the moment - at least until they resolve all their IT problems.

Also, for what its worth, I have found A&L's business accounts to be terrible..

Regards
Sunil

jonesMUFCforever

stamford wrote: »

Go to the front of the line for moronic post of the month. OP still has to make £600 to claim it back.

For free/cheap business banking have a look at Abbey

You call me moronic and then go on to suggest ABBEY!

What planet do you live on?
If they don't do the turnover then they would not be charged that much.

Alison-J_2

The point of this post was to ask for advise to reduce my banking costs, after all thats what this site is about . . . money saving. Regardless of turnover, ejones999, £600 could be spent on far more worthy things than Lloyds TSB.

stamford

Alison-J wrote: »

The point of this post was to ask for advise to reduce my banking costs, after all thats what this site is about . . . money saving. Regardless of turnover, ejones999, £600 could be spent on far more worthy things than Lloyds TSB.

ejones999 is a half wit who's probably never heard of the saying "Turnover is vanity, profit is sanity"

As regards my suggestion of the Abbey as far as I'm aware there are no charges while you are in credit and you can pay cheques in via freepost envelopes or into their ATM's, it is purely online/phone the only counter service is if you pay in cash and they do set a limit on that. I've been with them about 5 years very pleased they pay a reasonable rate on instant access business deposit - this compares with the pittance I got from HSBC plus the pleasure of paying them £30 or so a month for writing a few cheques.

Have a look here http://www.anbusiness.com/