Why does DP need to know my salary to apply for a bank account for his business?

[iwouldgoouttonight]

That's it really! He just phoned me asking for my salary but he was in a big rush to get an application form in the post so I didn't get a chance to ask him why. I'm probably being really dim, but if its a business owned by him and his business partner, what's that got to do with me??

do you not want to tell him?

are you just boyfriend and girlfriend? why is it such a secret what you earn? I'd be concerned if living together and in a stable relationship if you couldn't share basics such as what you earn?

He doesnt. And it should have nothing to do with you. Not unless he has put you down as guarantor, or made you part of his business, somehow. I would think.

When we opened our business account, our personal salaries had no bearing on the opening of the account.

It may not be a secret from her partner, greggs, but there's definitely a question about why the bank should have any right to know.

Salary should only be relevant if you're after debt, not just to open a credit based account.
Is he a Ltd co or sole trader / partnership?

Posted too early
I was going to add, I suppose some bank accounts need a minimum credit each month but they'll be personal not business accounts.

Is your dp taking up a business loan?

Its a business bank account, not a loan. We both know each other's earnings, we've lived together for 8 years and have two DCs, but he just wanted the exact figure of my salary from my P60 to put of the form to apply for a bank account.

I just wondered why they needed to know this as I'm nothing to do with his company. He says its just that they need to know all his personal finances, as they asked about mortgage repayments too.

It just seems odd to me as I'm not connected to the business. Just wondered if this was standard when you open a business bank account.

The only thing I can think of, if they wanted to know about morgage, loans and debts if your also on the morgage they might want to know what you earn.

If its a small company and they are asking for a large overdraft the bank may want to know that if it all goes wrong what position they are in outside of the business.

I don't think im making much sence, or even if what im saying is right. Why don't you call and ask?

If he is a sole trader or in a partnership all his assets can be used to cover any business account liabilities, so his equity in the house etc are (theoretically) all up for grabs in a default.
If he owns a Ltd Company his personal liability is limited to the his shareholding / capital / directors loans. Unless he signs a guarantee.

I would have wanted an explanation before I agreed to him putting it on the form.

If this business is a partnership (and it sounds like it is), then he or his business partner can rack up a whole load of debts on behalf of the business that the business cannot afford to pay back. The people that are owed money can then come after any of his assets, including the home that you presumably own jointly.

The bank are therefore interested in how much there is to go for if it all goes pear shaped.

Do some or all of the following (in no particular order):

• get a lawyer
• get an accountant
• incorporate the business
• put any jointly owned assets solely into your name

This is why my husband owns our business, and I own the home.

or rather, why we did not put my husband down as joint owner when I purchased the house.

Either the b ank is taking the piss or your DP is. You need to make sure he is not listing you as involved with the business if it's likely to go tits up.

is the business a partnership or a company? if a company, this does seem odd. if a partnership then, as mranchovy says, the bank will be able to come after his share of your home and other assets. if he is in a partnership and proposing to obtain a loan then if i were you i would consider getting independent legal advice or following QSs advice. either way, you need to see the form and understand what your DP is proposing to do.

The bank can only go after assets owned jointly with you if you have signed a guarantee giving thema charge over your assets. For this to be legally enforceable you also need to have been given independent legal advice on the implications of this. The advice should be paid for by your DP's business.

But you haven't agreed to give any guarantees to his business. You are not even married, so have no legal or financial links with his business.

Have a serious word with your DP. Make sure he is not agreeing to give the bank guarentees that you are not happy with. Remember, any guarantees given involving your assets have to be signed by you. is there any possibility your DP is forging your signature on paperwork?

And tell him to tell his bank that your salary is NONE OF THEIR BUSINESS.

Actually...

I have recently applied to change my credit card provider... They wanted full outgoings (which incidentally are joint) and incomings (which are not). We have separate bank accounts and a joint one for bills. They couldn't balance... Obviously! So I asked them to have the outgoings, but they 'couldn't' do that an instead wanted to know DH's incomings. DH was happy to share but I confirmed that this was nothing to do with him, my credit card, not his, to be paid through my bank account.

I was a little cross to be honest. Halving outgoings made a lot more sense to me!

Perhaps this is similar?

My feeling is the bank are just gathering information. they have no right to it and they don't need it but you can be sure thay will store it and use it for marketing purposes later.

The only other thing I can think of and this is real red flag is that they will ask DP to get you to sign a form to make you joint and several liable for his debts arising from the business or worse stil to put up your house as security.

Do not sign anything. It is not your venture.

FirstOfficer - the CC company were just trying to get a feel for household income to get an idea of how likely they are to get their debt paid. Even couples with separate bank accounts will share their income to meet the bills.

However, the finances of the OP's partner's business have nothing at all to do with the Op and their bank have no right to any information on her finances. I would be highly suspicious of this request as it indicates that there may be an attempt to make the OP liable for the business debts in some way.

MoreBeta - an agreement like that will be unenforceable if she is not given independent legal advice before signing it.

But I agree. OP, do NOT sign any agreement relating to your DP's business.

Oh I see. I think the poster no said not to sign anything has hit the nail on the head. Your DP could make up a figure for your earnings if he wanted... What did your DP say when you questioned him further?

The bank can only go after assets owned jointly with you if you have signed a guarantee giving thema charge over your assets.

Well I don't know much insolvency law but I do know that I wouldn't want to share the ownership of my home with someone who had been bankrupted by a business partner.

I trust my DP completely and there is no way he'll be forging my signature or anything like that. I think he is unfortunately maybe being a bit naive, as he just gave the bank the information they wanted without really questioning it. When I've spoken to him about it he says the bank need to know the business partners personal outgoings - so they wanted to know how much is left to pay on the mortgage and how much I earn to pay towards it.

Could it be they want to ensure that if the business failed then I could afford to pay the mortgage on my own? Or is that me being naive?

I'm not signing anything - I'm not getting involved in the business at all. DP owns it jointly - he has 20% I think and his partner 80% (not sure of exact percentages).