Why do I have to close my business account for the old business structure?

When you are changing your business structure from a Sole Trader to a Limited company or from a Limited company to a Sole Trader, we must close the account for the old business structure.

This is because a Limited company is considered a separate legal entity to the people who own or operate it, whereas a Sole Trader is considered the same legal entity as the person who owns it.

Our policy states that we must hold an active account only for the correct business structure, however we do provide customers with a grace period when they are changing the business structure. This grace period allows you to move any funds and information over to the account for the new business type.

We will always let you know when an account is due to be closed, and you can get in touch if you need any support with this.