How to make the most of unclaimed dividends?

[Lumiere]

If you don't mind being a bit fast and loose (I am not sure of the benefit in kind implications of this so ask your accountant), I believe some offset mortgages are available which will allow you to offset company funds against your personal mortgage.

Never heard of it, can someone confirm if that's possible ? Wouldn't that result in BIK ?

[Moscow Mule]

Never heard of it, can someone confirm if that's possible ? Wouldn't that result in BIK ?

It's possible - some banks definitely offer it.

HOWEVER, it's open to a lot of interpretation if HMRC ever find out. If you google for

offset mortgage using ltd company funds

you'll find a link to another contractor site with an article about how it's pretty dodgy and the things they can catch you for...

[Lumiere]

Never heard of it, can someone confirm if that's possible ? Wouldn't that result in BIK ?

OK, did some research on the subject, does not look like it is going to work:
Stoozing Forum - Would it be possible

[SallyPlanIT]

Never heard of it, can someone confirm if that's possible ? Wouldn't that result in BIK ?

HMRC states "By law, at the end of each tax year you must give HMRC particulars of any expenses payments, benefits and facilities provided to:
* Each employee or director earning at a rate of £8500 a year , or more and
* Each director earning at a rate of less than £8500 a year, unless they are a full-time working director with no material interest in the company"

Surely, this IS benefiting the director and therefore a P11d entry.

[eek]

OK, did some research on the subject, does not look like it is going to work:
Stoozing Forum - Would it be possible

There was something on here from one of the accountants (can't remember his name but he's based on Watford) that gives you a possible way via a deed of trust. I think the argument is that it offers better security for the companies money because if the bank disappeared the loan and savings would be totalled out but you could then repay the company by taking out another loan.

[doodab]

You could buy a charter yacht or holiday property as an investment.

You could probably sponsor a motor racing team or other sporting endeavour as "marketing" if you were that way inclined.

[Fred Bloggs]

If you're an old timer like me, it's a no brainer to use a SIPP. I recently paid in £60k to my SIPP and a few days later got a cheque back for £15k tax free, leaving £45k in the SIPP and no personal or ltd co tax paid at all. Not bad. Unfortunately, you now need to be >55, upto April 2010 it was >50.

[THEPUMA]

There was something on here from one of the accountants (can't remember his name but he's based on Watford) that gives you a possible way via a deed of trust. I think the argument is that it offers better security for the companies money because if the bank disappeared the loan and savings would be totalled out but you could then repay the company by taking out another loan.

Yep that was me. It can be done from a tax perspective but whether or not the mortgage lender would allow it (if they found out about it) is another question.

PUMA