Where does your warchest reside?

[d000hg]

I don't distinguish between savings and warchest. Ultimately, I don't want my combined savings to get below a certain level but my 'warchest' is also my retirement fund and potentially my mortgage deposit.

[No2politics]

Where does your warchest reside?

I don't distinguish between savings and warchest. Ultimately, I don't want my combined savings to get below a certain level but my 'warchest' is also my retirement fund and potentially my mortgage deposit.

In this context
Warchest- retained profit in company
HTH

[jmo21]

In this context
Warchest- retained profit in company
HTH

For what it's worth, I also consider my warchest as both the money I pay/dividend myself into my savings, AND the money in my Ltd (with consideration to company tax) as well that will eventually be paid out to me - note: very careful on wording there to get it right.

I pay myself salary and divvies to the upper threshold and leave the rest as retained profit in my Ltd bank account to avoid the large tax hit.

Money paid to me goes to normal outgoings, savings accounts, max cash ISA every year on first day of financial year, max S&S ISA with payments spread over year.
I've also got various staged fixed term savings accounts as well to try and get higher interest rates.

I was overpaying my mortgage massively for a while, but have cut back on that at the moment.

I'm dabbling in peer to peer (Zopa, Funding Circle, Ratesetter) to see how that goes as well.

[Mikeoc1962]

Sits in my Ltd, getting to the point where will do some reseach to boost the rates I receive via 6 month bonds.

[deanosity]

Is anybody here using VCT investments, for the tax relief?

[northernladuk]

Is anybody here using VCT investments, for the tax relief?

vct site:forums.contractoruk.com/accounting-legal - Google Search

[psychocandy]

Like I said in other thread if you can income split and assuming partner doesnt earn too much of their own salary, you can withdraw £42K almost without 40% tax.

Thats enough for me and covers a lot of company income anyway.

So, max up to 40% comes out each year and goes into personal savings account.

[stek]

Like I said in other thread if you can income split and assuming partner doesnt earn too much of their own salary, you can withdraw £42K almost without 40% tax.

Thats enough for me and covers a lot of company income anyway.

So, max up to 40% comes out each year and goes into personal savings account.

Not partner per se, doesn't it have to be married couples?

[northernladuk]

Not partner per se, doesn't it have to be married couples?

Correct but is so yesterday calling SWMBO 'the wife'. Partner is so much more PC. Psycho is married though, just his choice of words.

[eek]

Like I said in other thread if you can income split and assuming partner doesnt earn too much of their own salary, you can withdraw £42K almost without 40% tax.

Thats enough for me and covers a lot of company income anyway.

So, max up to 40% comes out each year and goes into personal savings account.

I'm sure I've mentioned this before.

But you can currently pull £120,000 from your business without trying too hard.

£42,000 for yourself
£30,000 or so for your wife / husband assuming they don't earn much

£50,000 direct to the pension fund if you have no other need for it.

Granted the pension fund may not be to everyones taste but assuming you have a sensible amount of savings behind you (enough for 1 year+ without working say) its a very tax efficient option.