Leaving tax money in your company account...

[eliquant]

And remember folks don't leave your money in your company account even if your business account bank encourages you to.

I listened to them and stupidly did use it as an instant savings account on their recommendation after a year or so when the associated limited company had been wrapped up El Gordo and the Treasury Solicitors froze my business account without warning me and took all the money for themselves !

Complaining to the banks chief underwriter did no good .. he just fobbed me off.

I had to reopen the limited company and business account using a solicitor who made a formal request to the High Courts. The whole ordeal only cost 390 quid for 1000s which I would have lost.

I won't name and shame the bank but they sounded a bit like 'Flabby Business'.

The worst of it was when I complained to the bank formally (official procedures) they sent me a letter trying to con me into waivering all my rights to sue them for compensation provided they paid for my telephone calls made to sort the whole mess out.

[thunderlizard]

I'd say make sure you've got enough cash to pay the following, in order
(1) the taxman
(2) the staff
(3) the Triad (where applicable)
(4) everybody else.

Finding it hard to believe there are companies whose dividend distribution is based more on the personal finance needs of its major shareholders than its profitability. That would be a pretty darn unsound business in my book.

[Alf W]

I'm very surprised at this thread.

Firstly I'd have thought any decent accountant would provide some sort of spreadsheet or software that would allow you a pretty accurate 'at a glance' view of what cash you've got in the company account plus what CT and VAT liabilities you're carrying.

Secondly I'm surprised that there are people who clear out the company bank account every month. Surely 'proper' businesses take some divis out as an interim and then have a share out at the end of the year of what's left.

Thirdly, who can live on £37k a year? I'll be suggesting that to the wife for a laugh later.

[Gonzo]

Is anyone else as useless? Or have yous learned how to take this more seriously?

I am not quite that useless, the spreadsheet that you get from SJD will show you the maximum amount left available for dividends, don't go over that and you will have enough for the VAT and corporation tax owed.

However, from your other post it looks like that you have just found out how much personal tax you owe.

Which reminds me I have to chase up my account manager as I haven't had the figure yet. I know roughly what I owe for 2006/2007, but I have not allowed so much for the payment on account for 2007/2008

[Denny]

Are you looking for a more constructive answer than "cause I'm a lass and can't stop spending"?

As long as you're not shoving it all up your nose.

[Sockpuppet]

Now that I know this, I am frustrated that my accountant doesn't provide this info for me as a matter of routine. I.e.

Probably becuase that would push them down the MSC route.

Seriously a lot of people on here would benefit from doing thier own bookeeping in Sage or something gimilar. I can tell to the penny how much tax I owe, what type and when it is going out.

Removes all the guess work.

[Sockpuppet]

Dunno where you live Ferret but 37K isn't enough for a family to live on in the South East...

Now but £37k and a healthy amount of allowable expenses might be.

YoU sure can run up a lot of 40p mileage if you try. Ok, I commute 200 miles a day so for me the expenses outweigh the salary I take but hey ho.

[SallyAnne]

As long as you're not shoving it all up your nose.

It's nice that you make yourself laugh Denny

[Xenophon]

And remember folks don't leave your money in your company account even if your business account bank encourages you to.

I listened to them and stupidly did use it as an instant savings account on their recommendation after a year or so when the associated limited company had been wrapped up El Gordo and the Treasury Solicitors froze my business account without warning me and took all the money for themselves !

Complaining to the banks chief underwriter did no good .. he just fobbed me off.

I had to reopen the limited company and business account using a solicitor who made a formal request to the High Courts. The whole ordeal only cost 390 quid for 1000s which I would have lost.

I won't name and shame the bank but they sounded a bit like 'Flabby Business'.

The worst of it was when I complained to the bank formally (official procedures) they sent me a letter trying to con me into waivering all my rights to sue them for compensation provided they paid for my telephone calls made to sort the whole mess out.

Nightmare.

So the message here is don't leave money in the company bank account if you are closing down the company. Sounds fair enough.

I like to keep a nice, healthy balance in the company bank account. Surely there is no risk of it wandering off whilst the company is still trading?

[VectraMan]

I'm very surprised at this thread.

Me too. I do (sales - costs) * .8 = dividends - dividends already paid + left over dividends from last year = dividend I can pay now. I do that every month, or 2 months, or when I feel like it. I don't really understand how anybody gets into trouble.

It's a bit worrying how many people seem content to hand over everything to an accountant and have little to no idea what's going on with their business finances.