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Limited company / Personal bank account?

  • 13-04-2015 12:59pm
    #1
    Auscast
    Registered Users, Registered Users 2 Posts: 185 ✭✭


    My wife and I have a limited company that is yet to do any serious business. Can I close my business account and use a personal one to do ROS transactions? For a while now I've only been claiming VAT back on web hosting expenses.

    I was told by Wicklow Revenue (over the phone) that it would be fine, but AIB told me I need a business bank account as a Limited Business.

    Any help much appreciated.


Comments

  • #2
    CIARAN_BOYLE
    Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    Auscast wrote: »
    My wife and I have a limited company that is yet to do any serious business. Can I close my business account and use a personal one to do ROS transactions? For a while now I've only been claiming VAT back on web hosting expenses.

    I was told by Wicklow Revenue (over the phone) that it would be fine, but AIB told me I need a business bank account as a Limited Business.

    Any help much appreciated.

    It is best to have a separate account for a variety of reasons but you can make transactions using a personal account.


  • #3
    Auscast
    Registered Users, Registered Users 2 Posts: 185 ✭✭Auscast


    CIARAN_BOYLE wrote: »
    It is best to have a separate account for a variety of reasons but you can make transactions using a personal account.

    Thanks Ciaran,
    So it's not a legal requirement then?


  • #4
    CIARAN_BOYLE
    Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    Auscast wrote: »
    Thanks Ciaran,
    So it's not a legal requirement then?

    No but it makes a lot of things simpler. If a Revenue Audit for the company happens (more likely since you are in a constant VAT refund position) you will have to go through much more effort if there are not separate bank accounts.

    It makes drawings from the company more clear.

    It clarifies director's loan position.

    If you accountant has to perform an audit and there is no business bank account he may have to review your personal account.


  • #5
    srsly78
    Registered Users, Registered Users 2 Posts: 7,157 ✭✭✭srsly78


    The banks are dicks about this, it's their policy to try and make you open a business account so they can gouge you. As said above, it's better to use a second account for the business (keep it seperate) - but you can just open another personal account and use it in your personal capacity as director (ie dont mention company).

    Bizarrely the services you get from a (cheap) personal account are in many cases better than that of an e500+/year business account. Example: BoI personal vs BoI business.


  • #6
    Auscast
    Registered Users, Registered Users 2 Posts: 185 ✭✭Auscast


    That's great, thanks for all your help. This now means I can save 250 / year on iBB etc.


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