Question: Can I use my personal bank account for my limited company?
Answer: No. A limited company for contractor is an entity in itself and with regards to finances and expenditure, is completely detached from any directors and shareholders that the company may have.
Being a separate legal entity, you are obliged to open a separate business bank account for your limited company. This bank account will need to be opened in your limited company’s name.
Life will be made easier by having these separate accounts. This will be evident around the set times that you are required to file your personal self-assessment and pay any tax due on company profits.