A Question for the 'money-people'

[doh_boy]

One for the accountants.

I, and my group of friends, are thinking about setting a bank account for the group to pay for stuff we get/do together. A friend said paypal but I don't trust them so I said bank account.

Basically we want an account that is 'owned' by around 10-12 people. I assume you can do that? I was thinking that it would be fairly annoying to have to get all 10-12 signitures for any transaction. I want to know if there is any options available.

The option I've put forward is just have the account owned by one trusted person and we all agree but I'm thinking most of the group would want some assurances that the person can't run off with the money or whatever.

 

[kanonfodda]

You can do accounts with 2 trustees I think, so you need the signature of two people to get at the money, might be a safer bet.

As for more complex accounts, over to the "clever people"

KF

 

[Chameleon]

Dunno. You need a banker! We accountants are the most terrible people for managing our own bank accounts/finances ....... as any banker will tell you

 

[dysfunction]

Originally posted by Chameleon
Dunno. You need a banker! We accountants are the most terrible people for managing our own bank accounts/finances ....... as any banker will tell you

Indeed!

Its best to ask your bank about what type of accounts they could arrange for that...

 

[xane]

You might be better off going for a Building Society account.

 

[doh_boy]

Thanks for that. It looks as if I may be lumbered with the account . Time to pass the buck I think

I'll have a look at a building society, if there are any left. :s

 

[MYstIC G]

Rule One: People are ****s
Rule Two: People really are ****s

If you go in for something like this don't be under the illusinon that to "pass the buck" is a good thing. If you pay money into an account that isn't yours afaik you've got no recource if they choose to empty it into their pocket. Friends are only friends until they stab you in the back.

Not an upbeat thought I know but silly things like this can have a tendancy to cause friction if people don't go in "eyes open".

 

[~Lazarus~]

use an old shoebox under the bed instead!

 

[doh_boy]

Originally posted by MYstIC G
Rule One: People are ****s
Rule Two: People really are ****s

If you go in for something like this don't be under the illusinon that to "pass the buck" is a good thing. If you pay money into an account that isn't yours afaik you've got no recource if they choose to empty it into their pocket. Friends are only friends until they stab you in the back.

Not an upbeat thought I know but silly things like this can have a tendancy to cause friction if people don't go in "eyes open".

Aye that's kinda the point of asking here. I wanted to know if there was a way to have one main signee while still having the account 'owned' by the whole. I also though that one way of keeping people informed (Etc) was to have internet banking and all have the password. Therefore we wouldn't need to ask the bank to send the statement to all 10-12 of us.

 

[Tom]

Can you really trust your 12 friends to not argue when it comes to money? What happens if one of them wants to make a withdrawal, and that upsets your combined plans?

Anyway, the person you are looking for is called a treasurer. I think. Why not make that person somebody who does not hold any funds in the account, but is somebody you can trust? Like a close member of one of your families.

 

[Sichama]

Only share your money with people you don't mind if they take it for themselves...

...because thats exactly whats going to happen....

 

[xane]

You shouldn't have a central fund anyway, its way too risky, simply get your circle of friends to pledge amounts towards a common "fund", one person keeps a record, then it's up to the individuals to save and submit the monies when the time comes.

 

[Damini]

Oooh, ooh, can I hijack this thread and ask a question for the accountants too?



I might be getting an advance fee for my book soon (not definate, but if all goes well) and to be honest I have no idea about taxes. How would that work? It would be a one off payment intil I completed the book, so would I pay taxes then or at the end of the tax year or something?

And so its not a total hijack, maybe you can have a little box with a 12 digit combination lock, and so only by letting your powers combine can you access any money

In my experience, joint accounts work out badly. I'm still bitter over my ex shitty stoner stenchy bastard housemate using the house account to pay his wages into and "borrowing" cash.

 

[doh_boy]

Well it's not going to be an account with much money in. It's bascially an attempt to make paying for 'Group things' easier than sending e-mails with your bank details on and one person spending money then asking for it back. I wouldn't expect there to be much money in it most of the time. Hence the suggestion of paypal.

Dam, I figure you pay tax as soon as you get the money.

 

[Damini]

Paypal takes a long time to clear funds to bank accounts (so you'd also still need an account to transfer the cash into, can't just take it out a hole in the wall afaik), and takes a bite out of all things transferred in, and a bite of all things transferred out under £50. If you are looking to trade small amounts, I'd avoid paypal.

 

[madcow]

Go speak to a Solistor and Setup a LTD company (this is quite common for poeple who live in private flats apparenlty)
Problem sorted

 

[Tom]

Originally posted by Damini
I might be getting an advance fee for my book soon (not definate, but if all goes well) and to be honest I have no idea about taxes. How would that work?

Go see an accountant. Don't bother contacting the Inland Revenue, they're the most disorganised bunch of clowns on the planet, and they won't give you good advice.

So long as your annual income is below the taxable level (about £4500 or thereabouts), you won't have to pay tax, above that and you should, but if you're a student you may qualify for a discount.

Tax is normally paid every 6 months, at the end of July, and January. Beware that they calculate your tax bill based on the previous year's profit, which means your first bill will be quite large, as they collect this money in advance of you actually earning it.

If the publisher is your employer, then don't worry about it, they will pay your tax via PAYE.

 

[ECA]

damini...DONT SPEND ANY OF THAT MONEY.

its an ADVANCE, not a wage/sale fee/etc.

 

[Damini]

Aww ECA, don't say that I'm so poor right now that I can't even afford a newspaper, so this sounds like mana from heaven.

 

[ECA]

Sorry dams but it happens a lot to young black music artists in the us.

They get a nice fat advance for an album, then it doesnt get published, they have spent the advance on shiny cars etc. and cant pay it back and end up in big debt.

Maybe spend 1-2k?

But dont go overboard as it doesnt sell or they dont publish you are fucked financially if you've spent it.

 

[Damini]

Lol, your plan sets me up with £30,000. I like your plan No idea how much I'll receive - I might not even get anything if nobody's keen on taking the project on. I'd probably have a heart attack if it came anywhere NEAR £30,000 but I haven't talked figures at all with my agent yet so whatever it is, it'll be a surprise.

Edit - your swift edit leaves me on my own with a mystery figure of 30k

 

[MYstIC G]

Originally posted by Tom
Go see an accountant. Don't bother contacting the Inland Revenue, they're the most disorganised bunch of clowns on the planet, and they won't give you good advice.

True Story: 18 Phone Calls in 1 morning, Inland Revenue switchboard unable to put through to correct department once. Reason for calling being they didn't send us vouchers we had to fill in or face prosecution but which you cannot "order" from them in any way shape or form.

- or -

IR: "Fill this in or I'll fine you £100.00"

Us: "Can I have the form then please, I brought my own pen and all the information at my own expense."

IR: "No, no form for you sonny Jim. Transfer the £100.00 into our bank account by tomorrow or we'll fine you for late payment of the fine."

As Tom says, seek independant financial advice.

 

[Mr.Monkey]

I'm an accountant.
More inportantly I used to run a co-operative business.

Go see any commercial bank (such as HSBC, Natwest etc) and talk to someone about setting up a company account. All withdrawals will require 2 signatures.
You can then designate signatories to anyone who is trustworthy (ie has the most to lose).
Then setup a partnership contract (do not bother with a Ltd company, they are an awful lot of trouble to set up, and come with certain legal requirements of the directors).
A partnership contract is available from pretty much any high street lawyer. This will set out the rights of the partners and the most important thing being, if they do use any money inappropriately they can go to prison.
Keep board minuites of all decisions made, this will back you up in the even of a disagreement (which will happen). 12 people is a very large group for a group of equals.

This avoids the problems with personal use of cash as Damini suggests.


Damini: Depends on your contract with the publisher. If it can be counted as a salary, it goes as Schedule E on your tax return.
If it is a royalty, you may be recieving it with tax already deducted. It is also important to know how you file for taxes normally. If you are self employed, use the inland revenue's website to get the pro-forma submission sheet.
If you just work a normal ob, and don't usually file for taxes, you will have to do so this fiscal year (end apirl 04).


Oh, Tom, those rules only apply if you are self employed (you can tell, as you will pay National Insurance class 2 and 4), or a very large company.

 

[doh_boy]

Thanks I'll look into it.

 

[Delboy]

Sounds like a bit too much fuss really. but I guess in the long run it might quickly solve disputes.

Still, bank, lawyers....all to protect a BISCUIT TIN!!!

ffs!