Santander refused me a Client Money Account :(

Fireraiser

I've been with Santander for my lettings business since the beginning of the year, without any problem. However, I am now preparing to go into practice so approached them to set up a practice account and a client money account. Both accounts were set up fine, but I've just been told that my client money account is to be closed in July. My business manager has just found out why - Santander only offer client money accounts to full members of ACA or ACCA, not to MAAT's and definitely not to student AAT members.

So, can anyone recommend a bank which offers Client Money accounts to AAT members and, ideally student AAT members (I sit my last exam on 29 June!)?

I'd prefer not Lloyds as I found their service so poor, I moved to Santander.

Thanks

T.C.

I would suggest HSBC. They seem to be a little more "friendly" when it comes to this type of thing.

Monsoon

That's very interesting. I've been with Santander for 3 years and am just trying to open one. Have just emailed my business manager for clarification.

A bit rough that you opened one and then they said they were closing it!

Do tell the AAT about this - I know Santander don't accept Mortgage references from MAATs and the AAT do communicate with banks to get them to change their rules, and the only way they know to do it is if we tell them we are encountering problems!

JodieR

Just out of interest do many MIPs have accounts for client monies? I've never had a will or a reason to open one, would be interested to see how often MIPs use them.

Fireraiser

JodieR wrote: »

Just out of interest do many MIPs have accounts for client monies? I've never had a will or a reason to open one, would be interested to see how often MIPs use them.

Last tax year, I reclaimed over £4k in overpaid tax for friends and family. In that case a client account wasn't needed as they paid me in single malt However, doing it as a business, I'd certainly prefer a client account - the refund can be paid in there, I can deduct my fee and pass the balance to the client. This will save fee chasing.

I've just got off the phone to AAT. They are surprised, especially as Santander has just started recognising MAATs for mortgage application purposes. AAT are going to investgate and get back to me.

Monsoon

Fireraiser wrote: »

Santander has just started recognising MAATs for mortgage application purposes. AAT are going to investgate and get back to me.

That's brilliant news!

I've never had a client account as I don't like to handle client monies. However, I've just gotten a subbie who wants to pay me out of his tax refund, so I decided it was time to get one. There's just been the one so far, so I've used my reserve account while I'm waiting (Santander have taken ages), but I know that's not strictly correct, even though I pay the client immediately I get the refund, and so I'm trying to get a proper one....

burg

We are with RBS and have had a client account for about two years. No problems with opening it and is useful for subbies who would prefer to pay you out of their refund.

Fireraiser

burg wrote: »

We are with RBS and have had a client account for about two years. No problems with opening it and is useful for subbies who would prefer to pay you out of their refund.

That will be interesting when Santander take over the RBS branch network in Wales & England :S

If Santander are reconsidering their position, maybe that's why. They could lose a lot of RBS former customers if they don't.

sdv

As far as I know, unlike solicitors, accountants are not required to keep client's monies into a designated clients bank account.

The AAT ethical guide lines only mentions that clients monies should be kept separate from the business monies (practice bank account), and the clients monies should only be used for the intended purpose.

All a practising MAAT requires is a separate bank a account and are not required to have a "clients account".

You can ask your bank to open a separate business account in the name of your your practce with RE "Joe Bloggs". This account then acts as a clients account for all intent and purpose to satisfy AAT and your indemnity insurance company.

"Client's account" is normally ring fensed in case when a solicitor goes bankrupt, his indemnity policy will cover any losses to client if the monies are in a designated clients account. Solicitors have their own rules on handling clients monies.