refused a business bank account
Discussion
Dejay1788 said:
Use a different bank, if their service is this poor whilst trying to pay them substantially for awful service, imagine how terrible they will be if they get her tied in to an account and can't be arsed to deal with you?
What's this got to do with the Bank? Step 1 of any credit application is a credit search, and this has thrown up a Red Flag. Bank have advised applicant who now has the opportunity to investigate further.Countdown said:
2 & 3 are for the benefit of the individual and I can understand that. It's no 1 I can't understand. We make numerous payments to individuals, and small firms which aren't ltd co. I'm not sure what benefit there would be to us in insisting we only deal with Ltd Co. I'd rather sue an individual than a corporate entity.
AIUI, it comes down to the perception of regulation. Small companies are regulated by the CA2006, have to file accounts, have directors who have to meet certain standards of conduct, and so on. Sole traders aren't. It's also easier to credit check a small company than a sole trader. Now just how accurate the perception is is a different matter. But I'm pretty sure that's the reason.
Helicopter123 said:
Dejay1788 said:
Use a different bank, if their service is this poor whilst trying to pay them substantially for awful service, imagine how terrible they will be if they get her tied in to an account and can't be arsed to deal with you?
What's this got to do with the Bank? Step 1 of any credit application is a credit search, and this has thrown up a Red Flag. Bank have advised applicant who now has the opportunity to investigate further.BTW it was not a credit application of any kind just a basic business account to make occasional online transfer in and out of.
Countdown said:
Mr Pointy said:
The issue is not when everything is going right, but when it goes wrong. <snip>
We carry out the Employed vs. Self Employed checks for all Contractors providing services, regardless of whether they are ST or LtdCo. I'm not aware that paying a LtdCo (rather than a ST) absolves us from being lumbered with Ers NI issues if HMRC decide to investigate?Eric Mc said:
Mr Pointy said:
Eric
In relation to another thread does it make any difference to the employer having to pay the tax & NI due if the deemed employee is a sole trader or operating as a limited company?. Would they be liable if the former, but not if the latter?
It makes a BIG difference.In relation to another thread does it make any difference to the employer having to pay the tax & NI due if the deemed employee is a sole trader or operating as a limited company?. Would they be liable if the former, but not if the latter?
If the engaged individual is claiming to be a sole trader, then it is the deemed EMPLOYER who has to find the underpaid taxers.
If the engaged individual is operating through his/her own limited company, then it is HIS LIMITED COMPANY that has to find the missing taxes (i.e. IR35 should have been operated).
You may now understand why some organisations are insistent that contractors come to them through their own limited companies.
Helicopter123 said:
What's this got to do with the Bank? Step 1 of any credit application is a credit search, and this has thrown up a Red Flag. Bank have advised applicant who now has the opportunity to investigate further.
It's unusual to advise the reason for rejection - normally once a bank says "no" you hit a brick wall.Mr Pointy said:
Countdown said:
Mr Pointy said:
The issue is not when everything is going right, but when it goes wrong. <snip>
We carry out the Employed vs. Self Employed checks for all Contractors providing services, regardless of whether they are ST or LtdCo. I'm not aware that paying a LtdCo (rather than a ST) absolves us from being lumbered with Ers NI issues if HMRC decide to investigate?Eric Mc said:
Mr Pointy said:
Eric
In relation to another thread does it make any difference to the employer having to pay the tax & NI due if the deemed employee is a sole trader or operating as a limited company?. Would they be liable if the former, but not if the latter?
It makes a BIG difference.In relation to another thread does it make any difference to the employer having to pay the tax & NI due if the deemed employee is a sole trader or operating as a limited company?. Would they be liable if the former, but not if the latter?
If the engaged individual is claiming to be a sole trader, then it is the deemed EMPLOYER who has to find the underpaid taxers.
If the engaged individual is operating through his/her own limited company, then it is HIS LIMITED COMPANY that has to find the missing taxes (i.e. IR35 should have been operated).
You may now understand why some organisations are insistent that contractors come to them through their own limited companies.
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