Hi guys, In the past 10 years I have managed to build up £700k surplus cash in my limited company. I already spoke to couple of IFA regarding investing this money since I am only getting around £50 interest from HSBC business saving account. Most of the IFAs recommended setting up pension since I don't have this at the moment. I am currently looking into aldermore business savings and ratesetter peer to peer lending. They seems to be offering better interest rates. I am also concerned if investing this money will affect my entrepreneurs' relief tax. I was also interested in purchasing couple of properties but I believe it will complicated. I might have to setup a separate limited company and then loan the money from my existing company to the new company which will purchase the properties. I am guessing this will be bit more complex. Can you guys provide some advice for my situation.
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No first-time posters will be welcome on this thread.
HTH"I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
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Save - Cambridge & Counties Bank - Small to Medium (SME) Commercial Lending
Cambridge and Counties also offer a slightly better rate if you go for a notice account or fixed term.Comment
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You've missed a trick building that up and notnusing higher rate savings such as Aldermore!!!! That's a lot of money gone begging.
Look in to ratesetter and P2P carefully. All is not what it seems. They lend it outnumber chunks which can take time so not all of it will be earning that interest. It's been around so might be getting diluted and abused a bit more so personally I wouldn't expose too muchbof the money to that.
Properties through limited tend not to be efficient unless you are going to have a few. SueEllen mentioned a figure awhile ago but don't know where that came from.
What not take the tax hit and get itnin to your personal savings. You are going to have to do it at some point. Gonna cost you dearly if you plan it wrong and pay Max tax on a majority of that.
There is no magic fix whatever you do. Tax planning so late in the day is gonna come with some hits you could have mitigated over the years.'CUK forum personality of 2011 - Winner - Yes really!!!!
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And is this all in one bank? Isn't only 75k of that covered? Or whatever the rate is?'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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That's £70k a year saved after CT etc. That's some rate....Comment
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Might still be at home, living with his parentsOriginally posted by stek View Post
Although, you would think he would, at least, have some BTL's.The Chunt of Chunts.Comment
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Yes, you are right about not moving the funds to better saving account. I made a huge mistake with that. For the past few years, I have been taking higher dividends in order to purchase my first house. I have been lucky enough to buy the property outright.
Business is slowing down now so I am trying to make the existing surplus cash generate more income. I already have £100k at Aldermore with 1.9% interest and further £100k with ratesetter at 3.2%. I know P2P is bit risky but ratesetter seems to be more reliable the rest. All the cash is in HSBC business saving account.
Any other ideas to generate more income from the surplus cash?
Originally posted by northernladuk View PostComment
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Be a bit more out there and think about a commercial property instead of houses?
but that said I'm neither qualified nor comfortable giving investment advice out.
Have you exhausted the ideas given by your IFA and accountant so far?'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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