How to make the most from money in company bank account?

[THEPUMA]

Hmm...you're right I could just ask. Just would be a bit worried that might trigger an investigation. I've got nothing to hide but I could really do without it just now.

Yes it's not something I would advocate unless you were only prepared to proceed with absolute certainty on the matter. Have you asked your accountant their opinion?

Puma

[moorfield]

well we wouldn't be talking 50K, probably more like 150. Offsets are what, about, 3.5% let's say. That's £5250 saving a year

Fair play - that's worth pursuing. In my case I don't think it is.

[Olly]

I haven't asked them yet as I still don't really understand it.
Do you mind taking the time jot down what the question should look like...I mean what would the 'covenant' look like etc?
I'd be happy to pay my accountant for their take and share it with the board
thanks

[THEPUMA]

I haven't asked them yet as I still don't really understand it.
Do you mind taking the time jot down what the question should look like...I mean what would the 'covenant' look like etc?
I'd be happy to pay my accountant for their take and share it with the board
thanks

I guess you simply need to ask them whether they agree that there are no tax consequences if the company deposits its cash in your mortgage offset account via a deed of trust. You need to emphasise that you do not consider this to be a loan, but that you are holding the money in trust on behalf of the company.

If they tell you it doesn't work, try and get some justification as to why not and some clarification as to how it should be taxed.

Puma

[escapeUK]

well we wouldn't be talking 50K, probably more like 150. Offsets are what, about, 3.5% let's say. That's £5250 saving a year

Exactly. Id love to know what mortgage deal he's on if he only pays £650 a year interest on a £50k mortgage.

[moorfield]

Exactly. Id love to know what mortgage deal he's on if he only pays £650 a year interest on a £50k mortgage.

Base Rate + 0.75% for the next 20 years.

So I could get a much better return on £50k elsewhere for the forseeable future - maybe I'll look at Zopa again.

[Wanderer]

There is a personal benefit but there are many ways someone can personally benefit from company funds without a tax liability. In this case I simply don't believe there is a taxing mechanism to enable HMRC to levy any tax. I guess if you wanted to you could ask HMRC's opinion before implementation.

If you're an accountant then why don't you ask HMRC?

They would probably say no, even if it was within the rules though..

[THEPUMA]

If you're an accountant then why don't you ask HMRC?

They would probably say no, even if it was within the rules though..

Hi Wanderer

They wouldn't respond to a hypothetical query; only one on behalf of a genuine client. And I wouldn't advocate that any of my clients draw that attention upon themselves.

Puma

[Wanderer]

They wouldn't respond to a hypothetical query; only one on behalf of a genuine client. And I wouldn't advocate that any of my clients draw that attention upon themselves.

Fair enough! I don't blame you for not wanting to put your clients heads above the parapet on this one.

[ASB]

Hi Wanderer

They wouldn't respond to a hypothetical query; only one on behalf of a genuine client. And I wouldn't advocate that any of my clients draw that attention upon themselves.

Puma

I think there is also a strong chance that that wouldn't offer a pre transaction opinion.