Paying company costs through a personal bank account.
Many people don’t realise that it there is no requirement for a company to have a bank account in it’s name and that a director’s bank account can be used to make company payments and receive company income. As long as there are proper records kept to show who’s income and expenditure belongs to who then HMRC won’t object to this type of arrangement.
In saying this it makes sense to have a bank account in the company’s name or this can create other problems. An example of this would be if a customer makes out a cheque in the company’s name. If you don’t have a company bank account then you will not be able to cash it.
Also from an accountants point of view it is more straightforward and there is a lot less scope for errors if a company has it’s own bank account which is used purely for business transactions.
If you need advice on any accounting or taxation issues please don’t hesitate to contact us. We are located in the Northamptonshire village of Lamport meaning that from Michael Paul Accountants Kettering, Northampton and Market Harborough are all within easy reach.