Company X Ltd has purchased 100% of the shares in company A Ltd
The directors of X Ltd want to just have one bank account but issue seperate invoices using one or the other ltd company name.
Keeping the identity of both limited companies.
Both companies wil be using the same offices adminisatration so will be very integrated in the back ground.
Surely as they are both legal entities you cannot have one bank account plus the issue of the confirmation of payee name system.
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Company X Ltd may have purchased 100% of the shares in Company A Ltd, but they remain two companies and each invoice will be issued from one of the companies and settled into the bank account of one of the companies.
One company may receive payment into its bank account on behalf of the other company, though this will then need to be settled via inter company loan accounts / similar. This will also need to be communicated to the payer in order for the confirmation of payee service to match. It's likely easier to keep things simple with separate bank accounts and each invoice settled into the corresponding company's bank account.
Agree
Recipe for disaster
And serious confusion should one of the entities start to wobble
Sorry to go off topic (I'll tell myself off later) but... was there any connection between X Ltd and A Ltd beforehand? It strikes me as particularly odd thinking by the directors of X Ltd if they had no prior connection, that's why I ask.
My hunch is you (sorry... you call them 'they'... what are they to you?) may have an issue with TiS legislation.
A bank account is in the name of a single company, end of conversation.
Why don't they just hive it up and have two trading brands in one company if its that closely linked?
Or are we in the bookkeeper level advisor zone here? If so, get someone else more experienced to sort it all out planning wise. Doesn't sound like a job for anyone green.
Another one of those questions without a question-mark in evidence ... but the concept is clearly crazy (as OP knows).
The only interesting aspect is WHY.
Why do "The directors of X Ltd want to just have one bank account but issue separate invoices using one or the other ltd company name"?
If they're trying to lose/wash revenues from one company then we don't need to know any more about their objectives ... but if there's a 'valid' reason then there may be other routes open to them (for instance the comment from @ireally about having "two trading brands in one company").
Think of the increased accounting fees is more to the point.
We for years ran our commercial rent collection for two entities through one bank account (I inherited the position), absolute pain in the proverbial, in fact if distinct bank accounts they likely could have done without me full time years ago.
I finally got the banking split, life is simpler, accounts are simpler, inter company is not awash with transactions.
Just imagine the pain re MTD if/when it extends to CT with everything washing through the one bank account.