Two bank accounts

Two bank accounts

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A client has been trading for two year as XYZ.

He has just formed a company XYZ Limited for a new venture.

Barclays have told him they will not open a limited company account because "it has the same name as the sole trader business"

I have spent three hours battling with them and they are adamant that this is "the law". Have any other members experienced this?

Replies (10)

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Locutus of Borg
By Locutus
27th Feb 2012 10:38

You must have been put though ...

... to the work experience trainee!  Ask to speak to someone that has at least a basic understanding of business or take your business elsewhere.

 

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By JSJ54
27th Feb 2012 11:16

The Regional Controller (whatever that means) says I'm wrong. I have made it an official complaint.

The person who told me, in the first place, was a Business Manager (whatever that means).

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By Steve Holloway
27th Feb 2012 11:25

What a load of tosh!

I've had loads of clients who lack the imagination to come up with a new name and never heard of a problem.

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By thisistibi
27th Feb 2012 12:07

Funny

I have a client who had a very similar comment at Barclays.  After speaking to the bank, the client asked me if they could use their sole trader bank account, as it had the same name without "Limited" on the end.  I said no, do it properly.  They eventually went to a proper bank (HSBC) and got a better service, but I can't tell you exactly what the conversation was with Barclays.

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By Canary Boy
27th Feb 2012 14:58

When we changed from Sole Trader (ABC) to...

a Ltd Co. (ABC Ltd) we were told by one of our banks that they would use the same account number and just change the name. I was surprised, but that is what they did. It made it easy for all the receipts via standing order and there have been no problems since. HSBC insisted on closing the S/T account and opening a new Ltd Co account. 

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Replying to pawncob:
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By patvanaalst
28th Feb 2012 12:33

Canary Boy - HSBC

But when I phoned HSBC last week to check before incorporating I was told we just had to bring the certificate of incorporation in and they'd change the account!

I guess I called on the right day of the week then!!!!  But who knows what will happen when we walk through the door...

 

Pat

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By taxhound
27th Feb 2012 16:17

Hmmm - they are all at it

And when one of my clients died very unexpectedly and the bank closed his limited company account along with his personal accounts when his personal affairs were wound up and gave all of the money to his wife, even though there was another director/shareholder involved they were suitably embarrassed after I pointed out the error of their ways....

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Euan's picture
By Euan MacLennan
28th Feb 2012 13:51

Abbreviation

My suspicion is that banks always feel the need to abbreviate long trading names to fit them onto their cheques and the first word to get the chop is the Limited at the end - either reduced to Ltd or removed completely.  Having done that, they cannot recognise any difference between XYZ and XYZ Limited.

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By JSJ54
01st Mar 2012 14:13

We're all wrong

Barclays have told me that because of regulatory requirements and money laundering it's impossible to have two accounts because two businesses can't have the same name!

Bo***cks

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Replying to Portia Nina Levin:
By Canary Boy
01st Mar 2012 17:17

HaHaHa

I wonder how Tax Assist (and countless others) get on.

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