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

[psychocandy]

Yeah, that's probably why accountants are not keen on directors loans. I would be interested to hear what happens...

Are you in the same boat? LOL

Latest I heard was it was about £15K. They asked him to make a repayment offer so he offered them £60 a week which they turned down. LOL. (No tulip! > 20 years repayment time !!!).

To be honest, its his problem not mine. Stupidity and selfishness abounds with him.

[eek]

Are you in the same boat? LOL

Latest I heard was it was about £15K. They asked him to make a repayment offer so he offered them £60 a week which they turned down. LOL. (No tulip! > 20 years repayment time !!!).

To be honest, its his problem not mine. Stupidity and selfishness abounds with him.

Stupidity is definitely an issue there. The first four things I've ever told someone wanting to be a contractor is:-

1) Not all the money is yours
2) Separate out tax and VAT before anything else and put it in a separate pot.
3) Only then pay yourself
4) don't expect to work all the time so save for the bad times.

[northernladuk]

LOL. Nope not my twin brother.

Slightly different because hes not in IT either. Just an example though of how some people would spend the money first and think later.

In my brothers case, he was completely clueless so I told him to get an accountant who, correctly, advised him that a gross payment to his ltd company was not all his to be spent. But the dull sod didnt listen and instead saw many beer tokens floating around in the bank account.

Now hes whinging that they're after him to the tune of £15K, young family to feed/cant afford to pay etc. No sympathy at all.....

Didn't some MTV presenter suffer a similar fate a while ago? i.e. spent the lot and then was skint?

He needs a good forum where he can ask questions IMO.

[FiveTimes]

He needs a good forum where he can ask questions IMO.

Do you know of one ?

[eek]

Do you know of one ?

I'm sure someone had a link to a free personalised one to one service where any questions could be asked without embarrassment. click here to try it.

[northernladuk]

Do you know of one ?

I would suggest http://www.gransnet.com/forums seems mumsnet is a bit too hardcore....

[psychocandy]

Stupidity is definitely an issue there. The first four things I've ever told someone wanting to be a contractor is:-

1) Not all the money is yours
2) Separate out tax and VAT before anything else and put it in a separate pot.
3) Only then pay yourself
4) don't expect to work all the time so save for the bad times.

Seems sensible enough.

[Wmnr]

As others have said, company money belongs to the company. But some banks allow you to open savings accounts in the companies name and these can be used to earn some interest.

Secure trust bank offers an 120day notice account paying 2.5%

Cater Allen term deposit for for 12 months offers 2.4% (min 50k)

For the more adventurous, selftrade offer a business dealing account that you can use to buy shares, bonds, funds etc