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Funding a house purchase

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    Funding a house purchase

    ... awaiting accountants response so thought I would post in here for the consensus view...!

    So I am looking to buy a house, and I have X amount of money for the deposit. The money sits in my business account, and is what I consider "separate" from the company money. What I mean by that is all tax due has been paid on this money that has accumulated over the last 3 years.

    So, when it comes to plonking down the money, just a simple case of transfer to my current account and then fire over to the solicitors right? I am not missing any huge red lights here?

    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?

    Cheers all!

    #2
    Originally posted by blueislander View Post
    ... awaiting accountants response so thought I would post in here for the consensus view...!

    So I am looking to buy a house, and I have X amount of money for the deposit. The money sits in my business account, and is what I consider "separate" from the company money. What I mean by that is all tax due has been paid on this money that has accumulated over the last 3 years.

    So, when it comes to plonking down the money, just a simple case of transfer to my current account and then fire over to the solicitors right? I am not missing any huge red lights here?

    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?

    Cheers all!
    Yes dividend tax when you withdraw the money.....
    merely at clientco for the entertainment

    Comment


      #3
      And how you are you accounting for this money? Divi it out? Directors loan? Obviously a whole host of gotcha's with Directors Loans. There is also the fact that many BS won't accept loans as a deposit.
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        Originally posted by blueislander View Post
        ... awaiting accountants response so thought I would post in here for the consensus view...!

        So I am looking to buy a house, and I have X amount of money for the deposit. The money sits in my business account, and is what I consider "separate" from the company money. What I mean by that is all tax due has been paid on this money that has accumulated over the last 3 years.

        So, when it comes to plonking down the money, just a simple case of transfer to my current account and then fire over to the solicitors right? I am not missing any huge red lights here?

        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?

        Cheers all!
        Say you've got 50k - have you already accounted for this through your year end accounts, have you declared a dividend to draw it against?

        If it's carried over profit, i.e. warchest, you've not paid any tax on it yet because you haven't removed it from the company. Or are you saying you've declared the dividend, paid the tax on it and simply haven't transferred the money yet?
        The greatest trick the devil ever pulled was convincing the world that he didn't exist

        Comment


          #5
          If I read you correctly, this is the balance owed to you through your directors loan account and is the undrawn balance of dividends declared, salary processed and expenses claimed accumulated over a period.

          This being the case then in terms of income tax there is nothing to be concerned with as this money is owed to you from income on which you have already paid tax.

          Is this house going to be your primary property or are you buying a second property? If the latter then you should be aware of increased rates of stamp duty and reduced ability to claim mortgage interest against rental income property as an individual. If the former then all is good.

          Comment


            #6
            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. So basically it is the question of "when I physically transfer to my current account am I forgetting anything or are there some unheard of fees I would have to pay for a transfer out from my business account". I don't think there is, and this is for my primary house.

            For this coming year-end, I have a separate pot of income etc that will cover it all.

            I am probably still not making sense...!

            Comment


              #7
              Originally posted by blueislander View Post
              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. So basically it is the question of "when I physically transfer to my current account am I forgetting anything or are there some unheard of fees I would have to pay for a transfer out from my business account". I don't think there is, and this is for my primary house.

              For this coming year-end, I have a separate pot of income etc that will cover it all.

              I am probably still not making sense...!
              Is it simply the case that you haven't transferred it from your company bank account to your personal account yet?
              The greatest trick the devil ever pulled was convincing the world that he didn't exist

              Comment


                #8
                Originally posted by LondonManc View Post
                Is it simply the case that you haven't transferred it from your company bank account to your personal account yet?
                Yes (in my head anyways). I just came on here to check/double check/triple check vs accountant advice etc

                Comment


                  #9
                  Originally posted by blueislander View Post
                  Yes (in my head anyways). I just came on here to check/double check/triple check vs accountant advice etc
                  So this money has been declared dividends and you've included it on YOUR Self Assessment?

                  Why didn't you just transfer it before - most people are desperate to get money out of the business.

                  Comment


                    #10
                    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.
                    'CUK forum personality of 2011 - Winner - Yes really!!!!

                    Comment

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