Your Ltd. company - SCENARIO 2 Investing your Ltd. company money into shares, etc?

[Itoma]

Hi All.

How are we doing?

A bit of a niche subject but it is interesting because might be profitable if we have some good experience in this community!


So first of all - say you've got your Limited company (which most of us have):
You are contracting in the industry and you are the director of SuperBusiness Ltd.
This of course means:

1. You've got registered business.
2. You've got your company bank account where the money comes in and goes.
3. You've got VAT (mostly).
4. You are liable to Corporate Tax.
5. You pay yourself a salary through basic rate and rest through dividends.

Example salary:
I get say £100k a year from contracting.
This gives £81k after Corporate Tax of 19%.
Then I pay myself £11k tax free as basic salary.
And I'm left with round £70k of dividends.



SCENARIO 2: (Scenario 1 was in some other post)
Company & earnings as above:
What does need to happen to legally invest this money as a company in say: shares or forex and then get extra money?

Can this be done before paying CT?
In other words - if I got this £100k which after CT will be "just" £81k - can we (for sake of example without applying any investment risk strategies) invest whole value of £100k and then once a nice pay back from investment comes into our account - pay outstanding Corporate Tax on "normal" contracting salary and then investment one?

As an add-up to this - in this year CT strategy there is:
"Special rate for unit trusts and open-ended investment companies of 20%" - what does it mean to the Ltd. company owners who got some spare cash?

Is there any way to get Shares ISA or (new) Finance ISA account involved to optimise it?

Many questions - let's see what we're gonna get if it goes about the answers. Otherwise - there is always Wolf of Wall Street way of "just do it and then say you're sorry... plus get 22 months in jail"




Oh those forums... preemptively:

• No answers - "go to your accountant please". If you haven't done any of those and are not interested then just skip to the next post. The value here is in the community based on the experience of the users. Then we can all go to our accountants after doing a bit of homework first.
• If you've done it - let's share our experiences and build something good here so people will know possibilities on how to make their contracting lives this bit easier.

Thanks,
Eric

[northernladuk]

Plenty of advice about investing shares through the company already on here.

https://www.google.co.uk/search?q=in...obile&ie=UTF-8

Also search for forums about problems investing through your company and what it's main trade is.

Better still go talk to your bloody accountant.

[BR14]

Plenty of advice about investing shares through the company already on here.

https://www.google.co.uk/search?q=in...obile&ie=UTF-8

Also search for forums about problems investing through your company and what it's main trade is.

Better still go talk to your bloody accountant.

his accountant has a sideline as a butcher? - times are surely harder than i thought!