Fuel boats - don't pay in cash.

[magnetman]

Gold is good. 

[Paul C]

1 hour ago, Alan de Enfield said:

 

I have looked into the T&C of both my personal account (lloyds) and the company account (Nat West) and can find nothing in either T&Cs that could be remotely taken to cover me paying cash into my personal account from sources unknown, and then a week or two later making out a cheque to a company (I guess they dont know it is my/our company).

 

It is not unknown for me to buy 'stuff' for the company using my personal debit card, or personal cash and then the company writing me a cheque to reimburse me. Any invoice for the stuff I have purchased will be in the company name so 'financially' everything balances out.

 

It sounds like you're using the double transfer to disguise the fact you're making a business transaction with your personal account. There is nothing criminal about it, but its against the T&Cs to use a personal account for business, and I imagine they have some kind of blanket clause that covers the above scenario. The harshest penalty they can impose is to close the account at short notice - but then they can do that anyway, simply if they don't like/want you as a customer, so its no worse a position you're in anyway.

 

Banks (can't speak for them all but I know about Lloyds Bank) typically don't enforce those clauses in the T&C anyway, there is no merit in their doing so - they want more account holders, not less. They're far more interested in credit risk, money laundering, fraud, etc.

 

Furthermore, Lloyds and Natwest can't and don't share data on this type of activity - because its only to do with their own T&Cs, not a wider thing like credit worthiness, fraud prevention, tax evasion, etc (which they do all share data on). But they'll obviously know by looking, that a payment in followed by a payment out of the same amount, is probably some type of double transfer.

[ditchcrawler]

4 hours ago, Alan de Enfield said:

 

I have looked into the T&C of both my personal account (lloyds) and the company account (Nat West) and can find nothing in either T&Cs that could be remotely taken to cover me paying cash into my personal account from sources unknown, and then a week or two later making out a cheque to a company (I guess they dont know it is my/our company).

 

It is not unknown for me to buy 'stuff' for the company using my personal debit card, or personal cash and then the company writing me a cheque to reimburse me. Any invoice for the stuff I have purchased will be in the company name so 'financially' everything balances out.

The reason I asked was that my son when he had a shooting ground used his private account. The bank mumbled and he said would you rather I took the money somewhere else and nothing more was said. I paid in £2000 in cash on Monday morning for him.

[Mike Todd]

14 hours ago, Paul C said:

 

It sounds like you're using the double transfer to disguise the fact you're making a business transaction with your personal account. There is nothing criminal about it, but its against the T&Cs to use a personal account for business, and I imagine they have some kind of blanket clause that covers the above scenario. The harshest penalty they can impose is to close the account at short notice - but then they can do that anyway, simply if they don't like/want you as a customer, so its no worse a position you're in anyway.

 

Banks (can't speak for them all but I know about Lloyds Bank) typically don't enforce those clauses in the T&C anyway, there is no merit in their doing so - they want more account holders, not less. They're far more interested in credit risk, money laundering, fraud, etc.

 

Furthermore, Lloyds and Natwest can't and don't share data on this type of activity - because its only to do with their own T&Cs, not a wider thing like credit worthiness, fraud prevention, tax evasion, etc (which they do all share data on). But they'll obviously know by looking, that a payment in followed by a payment out of the same amount, is probably some type of double transfer.

Banks are under an obligation to report certain types of transaction, generally undisclosed, to a certain investigatory organisation. They can and do, freeze or close accounts without explanation. 

[1st ade]

15 hours ago, Paul C said:

It sounds like you're using the double transfer to disguise the fact you're making a business transaction with your personal account. There is nothing criminal about it, but its against the T&Cs to use a personal account for business, and I imagine they have some kind of blanket clause that covers the above scenario.

I'm in (relatively) deep doo-doo then.

 

I'm a Civil Servant and have been advised for travel, "book it yourself and claim it back" - not just the odd train ticket but flights to a conference in Florida, the hotel in Florida. We used to have a (individual) corporate credit card but cost saving... etc ...

[David Mack]

28 minutes ago, 1st ade said:

I'm in (relatively) deep doo-doo then.

 

I'm a Civil Servant and have been advised for travel, "book it yourself and claim it back" - not just the odd train ticket but flights to a conference in Florida, the hotel in Florida. We used to have a (individual) corporate credit card but cost saving... etc ...

I used to to the same before I retired. But the difference here is that these are expenses incurred in connection with your employer's business, not your business. So as far as the bank is concerned they are personal transactions.

[MtB]

I think the underlying point is banks need to gain some income from providing bank accounts, and given the UK market demands 'free banking' for personal customers, that leaves only the business customers shouldering the whole of the cost of providing bank accounts. If all businesses avoided paying bank charges by abusing personal accounts the whole business model for providing bank accounts at all would fail, so banks take quite harsh action against such abuse.

[GUMPY]

When I moved my business account to Barclays to get a year of free business banking I was advised by the business manager that after a year I should set up another account with a slightly different name and close the first account in order to get a second years free banking. It worked a treat for 4 years 😉

Also in order to get around the turnover limit I should have a deposit account and pay into that as only current account payments in counted towards the limit.

He was a good (for me) manager.