Farm Partnership Bank Account

west79

Hi there this is my first post but I regularly visit to see what all the good farmers are up to. I just need a bit of advice. I am in the process of getting a beef farm partnership registered with the department. The farm partnership is with my father. I have my own herd No on a farm I have on a long term lease and the father has the home farm. I have all the paperwork finished to register the partnership but I went to AIB last week to get the form about the joint bank account stamped and the manager would not stamp it. We have been in a farm partnership since 2011 and have a joint bank account and a joint tax number already. The manager would not stamp the form because she said that the account should be a Business account and the joint account is a personal account. She sent me off with about a 50 page application form to fill out and bring back. I contacted the Department and the lady that deals with the partnerships said that in her opinion the account is fine but there is no clear definition from the Department if a Business account is needed. I have just checked the charges for the iBanking wit AIB on the business account and it is 250 Euro per year and I think 100 euro to have a card and that's just to start. I feel I will be getting F***** if I open up a Business account and paying fifty times more for what I have already. Has anyone here registered a farm partnership lately and had this trouble. Thanks for the help.

WheatenBriar

Believe it or not charges and interest rates(on overdrafts), are lower at least in BOI Anyhow, so you are better off changing
You should not need reams of paper work to change,it can be done over the phone

Edit,AIB :eek:

Get a quote from BoI

ganmo

Bank price gouging. Find a cheaper bank
All the dept want is the bank official to certify that both of your names are on the account so it doesn't have to be the manager

Grueller

Ulster bank were the lowest on charges for me.

Timmaay

PTSB have free fees and 100euro cashback offer at the second when you transfer your account and credit card. I've just after done this for my personal account. Probably was at least 50pages to fill out ha, but the bank person dealing with me did all that there and then.

kowtow

west79 wrote: »

the manager would not stamp it. We have been in a farm partnership since 2011 and have a joint bank account and a joint tax number already.

Give him 24 hours to stamp it and tell him if he doesn't you will point out to the department that AIB is attempting to mislead them, and tell the world at large while you are at it. Tell him if he doesn't stamp the form you'll hold AIB responsible for any additional delay, losses or expenses you incur as a result of having to change bankers.

It's perfectly possible to have a legal partnership without a joint bank account, and it certainly doesn't require a "business bank account" to make it a partnership. If you (or he) doubt this try telling the revenue that it is not a business account and see how far that gets you!

Backing brave my arse,

Can't stand that kind of gouging, greedy, two faced behaviour.

west79

I think I will be going with the kowtow approach on this one. They are selling me something I don't want or need and fees were never mentioned.

Deepsouthwest

kowtow wrote: »

Give him 24 hours to stamp it and tell him if he doesn't you will point out to the department that AIB is attempting to mislead them, and tell the world at large while you are at it. Tell him if he doesn't stamp the form you'll hold AIB responsible for any additional delay, losses or expenses you incur as a result of having to change bankers.

It's perfectly possible to have a legal partnership without a joint bank account, and it certainly doesn't require a "business bank account" to make it a partnership. If you (or he) doubt this try telling the revenue that it is not a business account and see how far that gets you!

Backing brave my arse,

Can't stand that kind of gouging, greedy, two faced behaviour.

AFAIK it's a dept of ag requirement to have that joint bank acc. I was in a few partnerships here, and had to have joint business accs

kowtow

Deepsouthwest wrote: »

AFAIK it's a dept of ag requirement to have that joint bank acc. I was in a few partnerships here, and had to have joint business accs

The requirement is this:

(iii) Evidence from a financial institution stating the account through which all Partnership transactions will be carried out; and

As a matter of fact legally speaking it need not even be a joint account. Solicitor's practices for example are constituted as partnerships all over the world and frequently have only a small number of the partners as signatories.

Deepsouthwest

kowtow wrote: »

The requirement is this:



As a matter of fact legally speaking it need not even be a joint account. Solicitor's practices for example are constituted as partnerships all over the world and frequently have only a small number of the partners as signatories.

In my situation I was in a partnership with a stranger, ie not a family member. I certainly wasn't going to add this person on my personal, or farm acc. I'm sure it's because of this reason that the dept would prefer a seperate acc. Don't think I'd advise anyone to add a stranger to a personal acc!

west79

just to clarify: we already have a joint bank account since 2011 in both out names that is used totally for farm purposes with all payments from the department going into this account.
My issue is that the bank will not stamp the partnership form as it is a NORMAL joint account and not a business account. I'm sure the vast majority of farmers and small traders have a similar account. The bank are very helpful and will have no problem with helping me fill out the forms but I know I will get screwed with bank charges down the road. I just opened this account in 2011 and the bank knew it was for farm purposes. I just really need to know if any one here has registered a farm partnership with there father and was their bank account just a regular (husband wife type) joint account. Or a joint BUSINESS account with all the extra associated charges. I just feel I am been pushed to this business account with the net result of pissing 300 0r 400 euro down the toilet every year for the foreseeable future.

WheatenBriar

Just refuse and tell them if they don't stamp the form,youll take your business to a bank that will
Your mistake was asking the sales manager (which is all branch managers are today sadly) to stamp it
A teller would have done it for you

kowtow

You could always get a little stamp made with the words

"We're not backing brave, whatever the adverts tell you"

Stamp it on the top right of each of your cheques, next to the AIB logo.

Theoretically it meets the definition of a negotiable instrument and the banks should accept it, although the famous case (Inland Revenue vs Haddock) of a cheque written on a cow was a popular fiction.

Try and make sure the first cheque you do that way is given to someone with a sense of humour, and preferably an account at BOI.

mickey1985

Had a similar experience today in ulster bank.Bank worker would not set up a joint account without it being a business joint account. Just wondering what way others have setup the farm partnership bank accounts. Also which bank provided the best deal thanks?