MONEY - Business Account / Offset Mortgage

[Sandyman]

Can anybody help me out here

I have more than 35 K in my business account

Furthermore I have used another business account to offset my mortgage
by 50K plus


Q1 Is my 70K in my business account safe ?
Q2 Is the 50K + I have offset against my mortgage safe ?

[dezze]

Originally Posted by Sandyman

Can anybody help me out here

I have more than 35 K in my business account

Furthermore I have used another business account to offset my mortgage
by 50K plus


Q1 Is my 70K in my business account safe ?
Q2 Is the 50K + I have offset against my mortgage safe ?

Is the mortgage in your name? Can you offset it using an account held by your company? - assuming that's what you mean by 'business' account.

[expat]

Originally Posted by Sandyman

Can anybody help me out here

I have more than 35 K in my business account

Really? I don't have anything in my business account, in fact I don't have a business account. I own a Ltd Company that does have a business account; but its money is not my money, and HMRC for example are perfectly clear about that.

[Lewis]

Originally Posted by Sandyman

Furthermore I have used another business account to offset my mortgage by 50K plus

NO NO NO You cannot do this. The business money is not yours!

[ratewhore]

Originally Posted by expat

...but its money is not my money, and HMRC for example are perfectly clear about that.

So was the judge when i got divorced. He said the business is me and the money is mine and cannot be cloaked behind a Limited Company.

Guess it depends who you're talking to...

[Dante]

I'll admit to have thought about taking the risk on this one now and again.

I know at least three contractors who have done it (i know that doesn;t make it rght) - one of which paid his mortgage off in three years simply because he wasn't paying any interest on it at all.

I understand all the risks, but (devils advocate) are the HMRC really going to care what happens to the money in your business account as long as you pay your tax on time? No, it isn't MY money, it's my Ltd Co's money, but I earned it and should have the right to make it work for me (maybe not the VAT!).

I think the risk may be worth the reward - me and the missus have 50k in our ltd co's accounts - and with say £100k mortgage this would save us £250 per month and that would go straight into paying off capital - helping us pay the thing off in half the time. (How about if i offered to donate £50 of that to charity every month?)

If you changed yoru business bank account every two years and did everything else above board - you'd be very unlucky to get caught.

Bottom line is - has anyone ever been 'done' for this?

[ratewhore]

Originally Posted by Dante

Bottom line is - has anyone ever been 'done' for this?

I don't think anyones been done for rutting with a chicken. Doesn't make it right...

[Dante]

I beg to differ:

Man Arrested For Having Sex WIth A Chicken At A Motel

[expat]

Originally Posted by ratewhore

So was the judge when i got divorced. He said the business is me and the money is mine and cannot be cloaked behind a Limited Company.

Guess it depends who you're talking to...

He was wrong.

Good point though: if you own a Ltd Co that has 100k, then you are worth 100k although you do not actaully have it as your own money. If that is so, then why won't the mortgage lender let you offset it?

[Lewis]

Originally Posted by Dante

I'll admit to have thought about taking the risk on this one now and again.

I know at least three contractors who have done it (i know that doesn;t make it rght) - one of which paid his mortgage off in three years simply because he wasn't paying any interest on it at all.

I understand all the risks, but (devils advocate) are the HMRC really going to care what happens to the money in your business account as long as you pay your tax on time? No, it isn't MY money, it's my Ltd Co's money, but I earned it and should have the right to make it work for me (maybe not the VAT!).

I think the risk may be worth the reward - me and the missus have 50k in our ltd co's accounts - and with say £100k mortgage this would save us £250 per month and that would go straight into paying off capital - helping us pay the thing off in half the time. (How about if i offered to donate £50 of that to charity every month?)

If you changed yoru business bank account every two years and did everything else above board - you'd be very unlucky to get caught.

Bottom line is - has anyone ever been 'done' for this?

Surely no bank should allow the offsetting of a business account with a personal mortgage ?!?!

Sandyman - who do you bank with?