Interest on company assets
First some background
My contract is paid weekly but I run my salary each month.
I’m flat rate vat registered so charge 17.5% but only pay HMRC 13%(12% for the first year).
I work out my debits each month (vat, corp tax, employer NI and always err on the side of caution) and keep a running total of what is in the business bank account and what’s due to come out.
I pay vat each quarter and corp tax annually (obviously ?).
Finally my question.
As the months and years progress I accrue a fair amount of money ear marked for VAT, employer NI and corporation tax in my business bank account. Am I allowed to move this money out of the business account into an account that gives me a better interest rate. I’d still be able to meet the company commitments as far as VAT and tax are concerned when required but I’d be earning a better return than the business account.
A further question would be what type of account could I move it to (simple saving or ISA and who should the account be registered to, me or the company) and who owns the interest me or the company ( I suspect this depends on whose name the account is opened in).
I suppose the goal would be to move this money somewhere where it could offset my mortgage but I think I’ve read somewhere that that might be a step too far.
My contract is paid weekly but I run my salary each month.
I’m flat rate vat registered so charge 17.5% but only pay HMRC 13%(12% for the first year).
I work out my debits each month (vat, corp tax, employer NI and always err on the side of caution) and keep a running total of what is in the business bank account and what’s due to come out.
I pay vat each quarter and corp tax annually (obviously ?).
Finally my question.
As the months and years progress I accrue a fair amount of money ear marked for VAT, employer NI and corporation tax in my business bank account. Am I allowed to move this money out of the business account into an account that gives me a better interest rate. I’d still be able to meet the company commitments as far as VAT and tax are concerned when required but I’d be earning a better return than the business account.
A further question would be what type of account could I move it to (simple saving or ISA and who should the account be registered to, me or the company) and who owns the interest me or the company ( I suspect this depends on whose name the account is opened in).
I suppose the goal would be to move this money somewhere where it could offset my mortgage but I think I’ve read somewhere that that might be a step too far.
Comment