What if I want to use a personal bank account for my company?

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Greetings all! Query: is it okay to use a personal bank account for a limited company rather than a business bank account? It seems easier if you ask me, but I don’t know if I’m allowed.

Answers

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That’s fine, you can use a personal bank account for your company but it will complicate matters because you will find it harder to keep track of your company’s income and expenditure.

Whilst it may seem easier simply to use your personal account, the reality is a lot different. Your available balance will include personal money and business money, so it will be confusing to figure out how much money belongs to you and how much belongs to the company. Mistakes are bound to happen and this could affect your accounts and tax returns.

It’s very easy to set up a business bank account and there are many good deals available at the moment - free banking for a year, low interest overdrafts, cashback rewards, expert help and assistance, etc. Shop around to see what’s out there - the comparison websites are usually the best places to start.

a year ago
 

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