Getting your Money Out

[BlackenedBiker]

Ok so we all aspire to have a warchest:

(I must state that I am not in this position: as yet)

but assuming one was....

There is £250K in the warchest.

Is it a good idea to keep this amount of money in the business doing no financial good (low interest etc)

What are the good strategies for getting it out of the business to invest for the future. Obviously if one has paid oneself upto the maximum 25% tax mark then to withdraw the money one is looking at a wopping 40% tax hit.

[EternalOptimist]

its too late now, but.........dont leave it in in the first place

makes you a target imo

[BlackenedBiker]

its too late now, but.........dont leave it in in the first place

makes you a target imo

So do you just take the tax hit then EO????

[rootsnall]

Speak to your accountant. With that sort of warchest stuck inside your Ltd it might be worth investigating a long overseas holiday. You will have 10% tax credit if you do pay it out as a divi. If you've got money over and above the lower tax band this year then maybe investigate paying it into a pension. For the money you've already paid corp tax on I'd look at other options.

[EternalOptimist]

So do you just take the tax hit then EO????

very seldom, my accountant has ways of spreading the good years over the thin
directors loans etc