Alternative Company Saving Account

[swebb]

Hi,

My company is using Cater Allen Bank. I'm happy with the service and have had no trouble with them. I have one issue however, I now have a fair amount of money built up in the company and it is receiving no interest. Is it possible to set up a saving account for the company with another bank basically just to hold the bulk of the money so the company gets some interest. My intention isn't to move money out of the company just to move money between the normal bank account and a higher interest company account and move the money back when required.

PS: If this is possible any tip's on good accounts ?

Thanks

Steve

[blacjac]

Yep it's possible, however you'll struggle to get a decent rate of interest in the current climate.

My company has an HSBC Money Manager account, used to get quite a decent sum a couple of years ago, but we get less than a quarter of that now.

[MarillionFan]

So I recommend that you open an Alliance & Leicester web account. Presently this is the highest paying account with 2.75% interest.

Open it, from a personal perspective and then transfer the money in.

The account is instant access and is the highest no penalty instant account on the market.

[kaiser78]

Sounds feasible as per the other postings but is it worth the hassle for a few extra £s interest ? Just make sure you don't mix up between company and personal accounts, as Mr HMRC doesn't really go for this.

[MarillionFan]

No I thinks it's fine. At the end of the day its up to you if you declare on not.

It depends on the cash you have. Put if you think VAT + Cor, that could be anything up to an average balance of £10k. Open the account it's worth an extra £275 for the year!

Depends if you think that's worth it?

[Support Monkey]

So I recommend that you open an Alliance & Leicester web account. Presently this is the highest paying account with 2.75% interest.

Open it, from a personal perspective and then transfer the money in.

The account is instant access and is the highest no penalty instant account on the market.

MarillionFan this is a personal account not a business account their business account pays and i quote:
# Earn 1.00% gross per annum on balances of £10,000 and over
# Earn 0.25% gross per annum on balances between £1 - £9,999

Be very carefull here (feel free to correct me if i am wrong) but you are in danger of assuming company money is your money if you open the account it needs to be in the company name in a business account, if you start moving money between business and personal accounts other than your normal Paye and divi you are going to end up in deep deep trouble with hector the inspector.

[MarillionFan]

MarillionFan this is a personal account not a business account their business account pays and i quote:
# Earn 1.00% gross per annum on balances of £10,000 and over
# Earn 0.25% gross per annum on balances between £1 - £9,999

Be very carefull here (feel free to correct me if i am wrong) but you are in danger of assuming company money is your money if you open the account it needs to be in the company name in a business account, if you start moving money between business and personal accounts other than your normal Paye and divi you are going to end up in deep deep trouble with hector the inspector.

I didnt say their business account. I said open a personal account and move it across. It is up to you and your accountant how you declare the interest.

it is not illegal to move the money into a personal account. You can assume it as a directors loan and earn interest on it. Trust me, done it for 13 years.

HTH

[Olly]

You can assume it as a directors loan and earn interest on it. Trust me, done it for 13 years.

yes but if its over 5k then you must pay interest on it to your Ltd
Trust me. You've been lucky not to get caught in 13 years

[MarillionFan]

yes but if its over 5k then you must pay interest on it to your Ltd
Trust me. You've been lucky not to get caught in 13 years

Which is my point above. It is not illegal to move the money into a personal account to earn interest on it. My accountant splits the interest and sorts it out.Nothing lucky about it.

It's the bank that decides on the interest rates you get, nothing to do with HMRC.

The other thing I do is use a cashback card for everything I use. It's a personal card with 1%. For me I spend about 50K a year on a CC. So it's useful.

To be honest, far to many people scared around the whole HMRC thing. At the end of the day if you make a mistake and if you get a pull(I never have and I dont know any contractor who has) then you would only pay what you owe plus a percentage.

Far too many people scared into 'doing it right' IMHO.

[Olly]

but the recognised HMRC rate you should be paying on the loan is higher than any bank account i know of....
Yes, of course you can break the law and just cough up when/if you get caught.
I don't think it's particularly unreasonable that many of us prefer to run our businesses legally.