Problems opening client business account

I am new to these forums but I am a licenced member and have been for many years.

Recently I decided to change banks. I had been with Lloyds, but they closed the local branch and with the Post Office closing as well I was finding it hard to pay in cheques. I approached Santander, who assured me they could open a client account once the main business account was opened.

All went smoothly but they have now (nearly four months later) told me that they cannot provide me with a client account, but they would consider designated clients accounts.

Fortunately, I hadn't closed the Lloyds accounts but this is still a major nuisance. Designated accounts hardly seem appropriate and it's questionable if they would meet AAT requirements. I use the client account for a few clients who like to pay by instalments and to receive occassional client tax refunds.

I am concerned that if I close the Lloyds current account to give me a Santander current account and a Lloyds client account, Lloyds may decide to close their client account.

I can't say I'm impressed with Santander, but staying with Lloyds isn't a great option either. If anyone has any suggestions as to how best to proceed with this I would be very pleased to hear from them.


  • burg
    burg Moderator, FMAAT, AAT Licensed Accountant Posts: 1,441
    Doesn't really solve your problem but I have done the following so have no client account.

    85% of clients pay monthly. These are regarded as subscriptions so we are not holding money that is just in advance of a later bill.

    We do not accept refunds paid direct to us. It's more difficult with HMRC these days and we have no need. If you are concerned about not getting payment then tell them it's payment before your file to HMRC.

    Our payment policies are 14 days or earlier if their is a filing deadline. Under no circumstances will we file now and be paid later. We will not be held liable for late filing penalties as a result of failing to pay our fees and deadlines being missed.

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