Funding a house purchase

[blueislander]

Why is it sitting in an account earning next to no interest? The mortgage company many question it if it suddenly appears from the company as well. Better to make it yours as soon as possible.

Basically because I have been 100% on top of what I need to pay out against my earnings, and 100% negligent on a smart way to actually make what's left work for me. I wish I could say it was more than that frankly but I've just not got round to it which is tres imbecile.

Accountant gave the thumbs up, moving it over now.

Cheers.

[piebaps]

lol - alls well that ends well. I suspect everyone was a little suspicious because they couldn't believe you hadn't done it already. Its not unique to you either.

[northernladuk]

lol - alls well that ends well. I suspect everyone was a little suspicious because they couldn't believe you hadn't done it already. Its not unique to you either.

It's not???

[TheCyclingProgrammer]

Yes (in my head anyways). I just came on here to check/double check/triple check vs accountant advice etc

You need to be absolutely sure here: are you talking about company reserves or are you talking about money owed to you because you've declared £xxx of dividends over the years but left the money in the company bank account, so its effectively credited to your director's loan account?

As Patrick said, if its simply a director's loan balance you can pay the back to yourself whenever you want.

If its reserve profits that haven't been declared as dividends then you need to declare a dividend and pay whatever taxes are due.

Perhaps a simpler way of putting it: do you have dividend vouchers covering all of the money you've got set aside in the business account and have already declared these dividends on the tax returns for the relevant years?

The reason people are asking is because its unusual to declare dividends over multiple years (potentially paying tax on them if above the higher rate threshold) and not withdraw the money into your own personal account where you can actually do something with it (even if its sticking it in a savings account, or paying the aforementioned tax).

[jmo21]

Typically I didn't illustrate it correctly

Yes, all dividend tax etc has been paid against it - this is literally all monies left over from previous financial years wherein all gross amounts have had their tax/vat/anything else accounted for and paid out.

That is a pretty big bit not to mention.

All dividend tax has been paid against?? really? without withdrawing it from the company?? YOU PERSONALLY paid any higher rate tax on the sum £X000 sitting in your company account?

I am assuming this is your first year?

As I say, this is all leftover money after all year end div tax, self assessment, corp tax, vat etc is paid, so am I missing anything I need to consider?

have you definitely PERSONALLY paid the dividend tax? the above makes it sound like you think div tax is something paid by your company. (and really there is such thing is div tax, it is personal income tax on income above the higher rate limit)

[56samba]

Assuming the divi tax has not been considered, if you are withdrawing a significant sum say 90k+ in one tax year, you will have to consider how losing the personal allowance also affects your tax bill.