What do you do with surplus cash in your business account?

[chris424uk]

Hi all,

Just wondering what everyone does with their surplus cash in their business bank accounts - with rising inflation on the horizon, I'm looking to make the most of the cash just sitting in the business (which is not needed for expenses, running costs, etc.) My plans would be to invest the money over a longer time horizon (3-5 years), so I wouldn't be actively trading for example. Here were the options I was considering:

1. Investing in Equities/Bonds
2. Investing in Cryptocurrencies (BTC/ETH - no crazy dog coins)
3. Buy-To-Let

Am I missing anything here? These all have varying degrees of risk of course but interested in hearing how you maximise your surplus cash. I done a quick forum search but mostly older posts and things have developed in the past year at a rate of knots (tax changes, regulations, pandemic, etc.)

Thanks,
Chris

[ladymuck]

Have you maxed out your pension? Always worth doing that first.

[chris424uk]

Yeah, that's right I'm maxing my yearly pension allowance at the moment.

[northernladuk]

Max out pension, keep 60+k aside as warchest and divi more out than the tax limit and enjoy it.I'm pretty much skint after that. I'd love to be in a position so many people seem to be in that they have surplus above and beyond that.

Although I've had my company 10+ years I wouldn't tie it in to anything for years like a lease or investments personally. If I need to close and can't it could end up costing me more than the investment or lease saved so counter productive but that is really my personal preferrence and not based on anything.

[jamesbrown]

All of those options you cite will probably result in your business being classed as a CIHC, so bear in mind the full implications of that reality.