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Bank Charges

Midnight_Caller
Rising Star
Posts: 4,143
Thanks: 7
Fixes: 1
Registered: 15-04-2007

Bank Charges

Hi All
I need your help with Charges for Cheques this is what I have found but may be wrong:
Charges for Cheques
Lloyds Business Bank    68p per cheque  payed in
Lloyds Current account  0p
HSBC Business Bank    68p per cheque  payed in
HSBC Current account    0p
Bank of Scotland              0p per cheque payed in
TSB Business Banking  0p
TSB Personal Banking    0p
As you may know I am Renting a Storage Unit, with me looking after my las who is still not well I don't have time to go and give the owner of the Storage Unit cash what he prefers, but I prefer to send him a cheque, the last cheque I sent him bounced with edf and Virgin Media digging into my account at the same time.
He said that he is getting Bank Charges for paying in a cheque, he said that he wants cash only!
Now this makes me suspicious, why cash only and if he is getting Bank Charges the highest bank charge that I can fined is 68p, it costeds me more to send it to him, whats 68p?
11 REPLIES
Community Veteran
Posts: 6,824
Registered: 27-10-2012

Re: Bank Charges

I think I pay 71p for cheques. Even paying in cash at the bank is the same - 66p per £100.
He probably wants cash to keep if off his books.
nanotm
Pro
Posts: 5,671
Thanks: 108
Fixes: 1
Registered: 11-02-2013

Re: Bank Charges

offer to pay him by bank transfer and then setup an online payment for a few weeks/months as required which means a) you have a record of the payments and b) he cant be dodging the taxes
also I'd like to point out that every business is allowed to deduct any account fees from there annual tax bill which is why most of them don't care about transaction charges, my dad's business incurs thousands of pounds in clearing charges every year and it just means he pays less in tax ....
just because your paranoid doesn't mean they aren't out to get you
Community Veteran
Posts: 1,770
Thanks: 33
Fixes: 1
Registered: 08-10-2010

Re: Bank Charges

You could also set up this new(ish) 'pay by text' thing.
Community Veteran
Posts: 6,824
Registered: 27-10-2012

Re: Bank Charges

Quote from: nanotm
also I'd like to point out that every business is allowed to deduct any account fees from there annual tax bill which is why most of them don't care about transaction charges, my dad's business incurs thousands of pounds in clearing charges every year and it just means he pays less in tax ....

A lot of businesses shop around for the best deals on fees. Although they are a tax deductible expense, they are still reducing your bottom line.
nanotm
Pro
Posts: 5,671
Thanks: 108
Fixes: 1
Registered: 11-02-2013

Re: Bank Charges

no there reducing your tax bill not your bottom line, your bottom line is the amount of profit you make conducting your business, if your bank charges are 10k your tax bill is reduced by 10k giving your business a zero effect on the bottom line, its money your going to pay out either way the only difference is who you pay it to, in fact since your offsetting your earnings against your deductions and then paying tax on a lesser amount your effectively increasing your bottom line by getting to keep more of the profits
just because your paranoid doesn't mean they aren't out to get you
VileReynard
Seasoned Pro
Posts: 10,583
Thanks: 192
Fixes: 9
Registered: 01-09-2007

Re: Bank Charges

Quote from: Midnight
Hi All
I need your help with Charges for Cheques this is what I have found but may be wrong:
Charges for Cheques
Lloyds Business Bank    68p per cheque  payed in
Lloyds Current account   0p
HSBC Business Bank     68p per cheque  payed in
HSBC Current account    0p
Bank of Scotland               0p per cheque payed in
TSB Business Banking   0p
TSB Personal Banking    0p
As you may know I am Renting a Storage Unit, with me looking after my las who is still not well I don't have time to go and give the owner of the Storage Unit cash what he prefers, but I prefer to send him a cheque, the last cheque I sent him bounced with edf and Virgin Media digging into my account at the same time.
He said that he is getting Bank Charges for paying in a cheque, he said that he wants cash only!
Now this makes me suspicious, why cash only and if he is getting Bank Charges the highest bank charge that I can fined is 68p, it costeds me more to send it to him, whats 68p?

Plus extra charges for bounced cheques.
Why not pay by monthly standing order?

Community Veteran
Posts: 6,824
Registered: 27-10-2012

Re: Bank Charges

Quote from: nanotm
no there reducing your tax bill not your bottom line, your bottom line is the amount of profit you make conducting your business, if your bank charges are 10k your tax bill is reduced by 10k giving your business a zero effect on the bottom line, its money your going to pay out either way the only difference is who you pay it to, in fact since your offsetting your earnings against your deductions and then paying tax on a lesser amount your effectively increasing your bottom line by getting to keep more of the profits

Just thing about what you're saying here...
The higher your operating costs, the lower your profit will be (assuming the same turnover). If your bank charges are normally £5,000 and you can reduce them to £2,500, of course they will increase your bottom line. The only difference will be is that the £2,500 saving is reduced to £2,000 with CT.
Community Veteran
Posts: 18,545
Thanks: 191
Registered: 12-08-2007

Re: Bank Charges

Gary, If it's only one cheque a month is it worth the hassle looking to see which bank is the cheapest? It will only be pence.
BTW, how is your lass getting on?
nadger
Rising Star
Posts: 4,498
Thanks: 46
Registered: 13-04-2007

Re: Bank Charges

@MC He possibly wants cash because your last cheque bounced and involved him in extra charges.
As artmo has asked - How's Angela getting on?
Community Veteran
Posts: 18,545
Thanks: 191
Registered: 12-08-2007

Re: Bank Charges

As you caused him extra expense because your cheque bounced why not agree to meet his cost and then maybe he will be happy to carry on taking cheques from you again until you can meet him with cash.
Midnight_Caller
Rising Star
Posts: 4,143
Thanks: 7
Fixes: 1
Registered: 15-04-2007

Re: Bank Charges

@artmo, That is what I am doing, and he is happy with that I.E. expenses in all £2 to be added to the cheque.
artmo, and nadger keep your eye on the forum, I will be posting a new thread on "How Angela is getting on after hospital" it is still work in progress.