Cash sitting in Co account- what to do with it?

[VFV]

What do people do with cash that builds up in corporate accounts due to (1) pending CT payments and (2) withheld earnings in excess of the higher rate tax threshold for dividends?

I had a look at fixed term deposit rates for corporate accounts at my bank and they are pretty pathetic. Are there any other more appealing short/mid term investment alternatives for idle cash?

[northernladuk]

I get flamed for saying this but try the search forum. This get's asked almost weekly and the amount of info offered is getting less and less so better to look through the history. It appears not much is the answer as you get taxed on benefits and all sorts of other issues. See if that pulls anything up for you.

[SueEllen]

I get flamed for saying this but try the search forum. This get's asked almost weekly and the amount of info offered is getting less and less so better to look through the history. It appears not much is the answer as you get taxed on benefits and all sorts of other issues. See if that pulls anything up for you.

WHS

Really there is a ton of information on this site. It's very rare that you would have to ask a question if you use the search facility.

[jmo21]

Problem with the search facility is that it always turns up pages and pages of threads like this..... someone asking the question, and someone saying "do a search".

[SueEllen]

Problem with the search facility is that it always turns up pages and pages of threads like this..... someone asking the question, and someone saying "do a search".

Oddly when I search on things either on this site or google refine my search terms and I know what links to ignore.

[Wanderer]

I've got a big wad of cash sitting there in my company account too... I don't think there is a satisfactory answer to the question of what you CAN do with company money, there have been lots of threads discussing things that you CAN'T do with the company money.

You CAN'T put it in your personal bank account (search for "Director's loan", it seems to be a bit of a minefield).
You CAN'T use it to offset your mortgage (it's not your money, it's the companies).
You CAN'T earn anything more than a pathetic amount of interest on it.

I worked with a bloke who said he just transferred it all to his personal bank account and said it's none of HMRC's damned business what he did with his money. Surely just a director's loan with all the associated problems?

We must all have a few grand in the company coffers.... Come on, what do folks here do with the money? Or is the answer that there is no "the answer"?

[RichardCranium]

Pension?
Training?
Dog's bollocks gaming machine?
State-of-the-art laptop?
Really, really comfy office chair?
Really big, high quality monitor?
Domestic security system?
Company bicycle?
Overseas / cruise ship training?
Pay tax in advance?
Life-long professional memberships?

[Scrag Meister]

Pension?
Training?
Dog's bollocks gaming machine?
State-of-the-art laptop?
Really, really comfy office chair?
Really big, high quality monitor?
Domestic security system?
Company bicycle?
Overseas / cruise ship training?
Pay tax in advance?
Life-long professional memberships?

Your purchases in the last year?

[Wanderer]

Some useful suggestions....

Oh yeah, good suggestions but what do I do with the other 40 grand that's sitting in my company account?

[Gaz_M]

This "just do a search" is getting very tiresome. I've done search after search but I can't find hardly any help with what to do with company cash.

I'm considering a plan 'B' with the money in my company account but have been advised by my accountant that I need to set up a new business (to avoid 'running multiple business activities through one company'). Therefore I can either a) take the money out but get clobbered on personal tax or b) loan money from one company to another (but I don't understand what happens if plan 'B' fails & the new company can never pay back the loaning company).

A straight forward answer seems out of everybody's reach apart from 'do a search'.