Investing Ltd Co funds

[TheGreenBastard]

Hi CUK,

I intend to ask my accountant next week - but I’d appreciate hearing from others that have invested from their Ltd before.

Is it as easy as signing up to a S&S brokerage in my companies name and depositing / investing into indexes/shares as I please?

I’m going to stop withdrawing from my Ltd Co for a while whilst still working my outside contract, so there’s going to be a decent sized pot building up that I’d like to start investing for the longer term.

Your Ltd's SIC code does not need changing at all, a company investing its own accrued capital is extremely normal, at least a % is, for me 20-25% post tax funding is about right. I wouldn't day trade or trade with any frequency within a Ltd. due to capital gains events which will become an absolute nightmare accountancy-wise. Dollar cost averaging is my personal strategy and circumvents accountancy complications until profits/loss are realised.

Interactive Investor gets another vote from me in terms of platforms for Ltds.

[NowPermOutsideUK]

I have used InteractiveInvestors in 2017 for ETF trading using a business account with no issue. Not sure what the rules are nowadays

[Fraidycat]

Thanks - what brokerages are you using? I’m going to hold off until hearing back from the accountant first, assumed others here would have done similar and could share their experience

I have an account with Interactive Brokers.

But only because I was trading European and US Futures. If you just want to trade UK stocks there maybe better choices.

[CS Contracting]

There is normally extra paper worth involved, but nothing onerous. Similar to opening a company bank account. copies of certificate of incorporation etc. Sometime the brokerage wants an extra resolution passed by board.

I have a couple of Ltd company trading accounts..

Go for one of the larger brokerage firms for safety of funds as i don't think you get 85K protection with a limited company like you would as an individual.

Thanks - what brokerages are you using? I’m going to hold off until hearing back from the accountant first, assumed others here would have done similar and could share their experience

[CS Contracting]

Bad time to start buying shares with a recession on the horizon but either way. You might have trouble finding a broker that will take a company account and you'll need to apply for an LEI for the company. You'll also need a W-8BN form to trade American stocks and so on.

Not something I'd be looking in to right now though but them I'm crap at shares.

Thanks, I’m planning on averaging in each month - so if/when the market sentiment changes in the future, my average cost shouldn’t be previous ATH’s.. who knows though, clearly the risk to either gain or loss.

Thanks for the suggestion re American stocks, I’ll likely keep it simple to UK

[CS Contracting]

There are issues with this.

for a start if your company stops being an IT company and becomes and investment company that’s a new SIC code.

it might also remove the ability to claim BADR when disposing of the company.

I’m no expert on this, but there are plenty of threads.
Just open a savings account with decent interest. Make it a variable one as interest rates are going up.

Thanks - I read similar online, my companies profit would still derive from my IT contracts, just the funds aren’t required and investing seems more sensible than keeping the cash in low interest rate account.

Do you know what the distinction would be and when the SIC code would need to change?

similarly, I wouldn’t want to lose the ability of BADR. Ideally I’d like to self sustain from side projects and invest 90% of my outside contract pay for 5/10 years and then utilise BADR for the closure

[jamesbrown]

Go for one of the larger brokerage firms for safety of funds as i don't think you get 85K protection with a limited company like you would as an individual.

The FSCS is effectively the same for individuals and small businesses, but FSCS is not going to protect you from bad investments.

[jamesbrown]

This has been done to death. Learn to search the forums (e.g., using a site-specific search with your favorite search engine).

[Fraidycat]

Hi CUK,

Is it as easy as signing up to a S&S brokerage in my companies name and depositing / investing into indexes/shares as I please?

There is normally extra paper worth involved, but nothing onerous. Similar to opening a company bank account. copies of certificate of incorporation etc. Sometime the brokerage wants an extra resolution passed by board.

I have a couple of Ltd company trading accounts..

Go for one of the larger brokerage firms for safety of funds as i don't think you get 85K protection with a limited company like you would as an individual.

[northernladuk]

Bad time to start buying shares with a recession on the horizon but either way. You might have trouble finding a broker that will take a company account and you'll need to apply for an LEI for the company. You'll also need a W-8BN form to trade American stocks and so on.

Not something I'd be looking in to right now though but them I'm crap at shares.

[Lance]

There are issues with this.

for a start if your company stops being an IT company and becomes and investment company that’s a new SIC code.

it might also remove the ability to claim BADR when disposing of the company.

I’m no expert on this, but there are plenty of threads.
Just open a savings account with decent interest. Make it a variable one as interest rates are going up.

[CS Contracting]

Hi CUK,

I intend to ask my accountant next week - but I’d appreciate hearing from others that have invested from their Ltd before.

Is it as easy as signing up to a S&S brokerage in my companies name and depositing / investing into indexes/shares as I please?

I’m going to stop withdrawing from my Ltd Co for a while whilst still working my outside contract, so there’s going to be a decent sized pot building up that I’d like to start investing for the longer term.