Reply to: Aldermore Easy Access - drops from 1.10% to 0.85% from September

[Contreras]

Cambridge and counties 30-day notice account to drop from 1.5% to 1.25% gross AER effective 13/10/2016.

[sal]

The thing is, investing company money into a company Ratesetter/Zopa account means that you pay CT on the interest earned, and then when you take the money out of the company for yourself you'll pay more tax that way. Potentially at a higher rate than today.

So it may only be efficient if you put any such interest straight into a your personal pension, or if you pull the money out of the business now and put it into a personal interest bearing account, taking advantage of the tax exemption on personal savings interest.

Just a thought...

The main use of Aldermore Easy Access was to get some interests on YourCo money that are not intended for you. VAT until the quarter end and CT until it's due being the prime examples.

[eek]

The thing is, investing company money into a company Ratesetter/Zopa account means that you pay CT on the interest earned, and then when you take the money out of the company for yourself you'll pay more tax that way. Potentially at a higher rate than today.

So it may only be efficient if you put any such interest straight into a your personal pension, or if you pull the money out of the business now and put it into a personal interest bearing account, taking advantage of the tax exemption on personal savings interest.

Just a thought...

That then comes down to the different approaches people use. Personally I currently withdraw as much as I can from the company (thanks to a non-working wife) others cannot withdraw it so cheaply... As such it may make sense for the money to remain in the company up to the point the company is sold and entrepreneurs relief is claimed for.

Hence once you hit the £45k level (excluding pension payments) unless you really need ready cash for many people it makes sense to keep the money in the company...

[chopper]

The thing is, investing company money into a company Ratesetter/Zopa account means that you pay CT on the interest earned, and then when you take the money out of the company for yourself you'll pay more tax that way. Potentially at a higher rate than today.

So it may only be efficient if you put any such interest straight into a your personal pension, or if you pull the money out of the business now and put it into a personal interest bearing account, taking advantage of the tax exemption on personal savings interest.

Just a thought...

[Yorkie62]

I use ratesetter as a way of making part of my war chest work for me.

[eek]

Zopa and Ratesetter both allow company accounts. They are probably two of the less risky P2P firms (although rates are lower as a result).

Linky for zopa is here

[dingdong]

Zopa and Ratesetter both allow company accounts. They are probably two of the less risky P2P firms (although rates are lower as a result).

[TheGreenBastard]

Blimey, didn't know investing company money was legit!

Don't know if being sarcastic or not, but to the best of my knowledge, so long as you're not investing on behalf of someone else... yes.

[Pondlife]

Cambridge and counties have just reduced their rates too.

Just got the email. Down 0.25% to 1.5% from 9th Dec for the 95 day access account.

[PerfectStorm]

Well Aldermore's notoriously slow website isn't letting me in this morning... wonder if they've caused a run on the bank?

[PerfectStorm]

I know that Saving Stream allows company accounts; ergo the money is still in the company. Putting the money in houses via a SPV is probably not a bad idea either tho.

Blimey, didn't know investing company money was legit!

[ChrisFromGreece]

Same here, so far so good - some wobbles, all in all pretty decent.

And it's 12%/year, so for the risk I think it's quite a good rate!

[TheGreenBastard]

But you take a 7% hit on the money as so as it comes out of your company - or worse. So you're better off putting it in something high yield like a house, or using business savings surely?

I know that Saving Stream allows company accounts; ergo the money is still in the company. Putting the money in houses via a SPV is probably not a bad idea either tho.

[TheGreenBastard]

For P2P lending, I am using SavingStream

Been using it for almost 2 years with no issues whatsoever

Same here, so far so good - some wobbles, all in all pretty decent.

[mudskipper]

Cambridge and counties have just reduced their rates too.