Stashing company money in mutual funds

[Optimus Prime]

Does anybody know if a limited company can make an account with someone like Hargreaves Lansdown or Invesco Perpetual and stick company cash into it?

Is anybody here already doing it? Your thoughts please.

Not having used such funds in UK - how liquid are these generally? I suppose it depends on the exact product - but some idea of whatever people are actually choosing to use for their company would be nice.

Yes, I know one needs to be careful about managing to have enough money for VAT / Corp Tax. I am assuming that if I spend a trivial amount of time managing it and my usual revenue far exceeds any profit from this (say 150K via trading vs 5K from the fund), I will stay the 20% corp tax level and won't have to call myself an investment business.

I am in my twenties - so no suggestions of pension funds for me please.

[SupremeSpod]

Does anybody know if a limited company can make an account with someone like Hargreaves Lansdown or Invesco Perpetual and stick company cash into it?

Is anybody here already doing it? Your thoughts please.

Not having used such funds in UK - how liquid are these generally? I suppose it depends on the exact product - but some idea of whatever people are actually choosing to use for their company would be nice.

Yes, I know one needs to be careful about managing to have enough money for VAT / Corp Tax. I am assuming that if I spend a trivial amount of time managing it and my usual revenue far exceeds any profit from this (say 150K via trading vs 5K from the fund), I will stay the 20% corp tax level and won't have to call myself an investment business.

I am in my twenties - so no suggestions of pension funds for me please.

Here's a clue...

Read your articles of association and then the relevant company T's & C's

Failing that, repost in accounting/legal

[Jessica@WhiteFieldTax]

Yes, in principle.

It would be very unusual for the M&A not to allow this.

Generally I would advise against it:

1 risk - best practice is to keep investments and trading in seperate entities - if you had a catastrophic recent in trading co, eg large bad debt, negligence claim, or IR35 determination against you, then you get the protection of limited liability and the investments aren't touchable.

2 tax - long term compromising of trading company status, could effect accessing entrepreners relief when you close down, maybe Business Property Relief for IHT if you were to die unexpectedly.

Although its sounds counter intuitive, I'ld tend to advise people to take the tax hit, draw dividends and invest personally.

YMMV

[moggy]

out of interest, and not saying you should do it..

but you say you're in your 20's so don't need to think about pensions.. if you want to put money into a pot for pensions at some stage.. then the earlier you start the sooner you build up that pot and retire..

[DimPrawn]

out of interest, and not saying you should do it..

but you say you're in your 20's so don't need to think about pensions.. if you want to put money into a pot for pensions at some stage.. then the earlier you start the sooner you build up that pot and retire..

At 55. No hang on 60. No 65. Oh now it's 70.

The latest plan to raid your pension - MoneyWeek

Good luck!

Personally I'd be buying property after property to let out.

[Ketchup]

At 55. No hang on 60. No 65. Oh now it's 70.

The latest plan to raid your pension - MoneyWeek

Good luck!

Personally I'd be buying property after property to let out.

This is what i plan to do. Am looking for my first BTL at the moment. 3 or 4 paid off by the time i am 50 = retire and live of a reasonable rental income

[DimPrawn]

This is what i plan to do. Am looking for my first BTL at the moment. 3 or 4 paid off by the time i am 50 = retire and live of a reasonable rental income

And your family can inherit the cash cow after you die. Pension dies with you.

[SimonMac]

out of interest, and not saying you should do it..

but you say you're in your 20's so don't need to think about pensions.. if you want to put money into a pot for pensions at some stage.. then the earlier you start the sooner you build up that pot and retire..

That is the single dumbest thing I have ever read!

I started my pension when I was 16 so I will be living fat at 55 when you are still working long past you die

[DimPrawn]

That is the single dumbest thing I have ever read!

I started my pension when I was 16 so I will be living fat at 55 when you are still working long past you die

Have you seen annuity rates? I hope you have several million in your pot to live fat at 55.

[SimonMac]

Have you seen annuity rates? I hope you have several million in your pot to live fat at 55.

Who say's you have to take an annuity? Drawdown the income from high yielding shares and its perpetually self funding