Making more money

[youdy3000]

Thanks - Comments Apprecriated

Very useful reply & debate.

btw - the person getting 2% from Santander is doing well. HSBC, with a Business Money Manager account, is giving me a pitiful interest rate.

[wantacontract]

You can invest your company money into the items, salt maybe a more short term investment or long term if the snow clears this week, may have to wait another 30 years for these conditions, anyway....

Although you can make such investments via your company, from a tax point a view I would not suggest this. The pro's and cons of a company investment are..

Pro's - Only 1 - You can use your company funds which will save having to distribute these as a dividends and therefore save personal tax at 25%

Con's - Many of these

1) Any gain in you company will be taxable at 21% (corporation tax), then this gain will still need to be distributed to you as a shareholder, a further 25% tax ( effective tax rate 40.75% )

2) Personal investments will be taxable at 18% flat rate, after the tax free allowance below, no double tax charge

3) You also receive no allowances, personally you would receive an annual tax free amount on gains of £10,100, per person, no such allowance for companies

4) Finally, Investments via your company can lead to your company being seen as an investment company, the consequence of this would be you paying 28% corporation tax on all company profits, also would bring a loss of allowances such as entrepreneurs relief.

Generally, you would be seen as an investment company if 20% of your activity was investments, this would be 20% of sales, assets, management time.

Summary

In summary, it would only be advised to invest via your company if it was a long term investment, even then I would say invest personally for the reasons above

Thanks

Neil

very good answer!!

[willwander]

Very cool answer. Thanks neil.
So might my best options right now be something like;
1) short term money, business deposit.
2) medium term, fixed rate bonds
3) long term, move to sipp

ta

[moorfield]

In summary, it would only be advised to invest via your company if it was a long term investment, even then I would say invest personally for the reasons above

WHS.

And if it's a long term investment, far easier to just shunt the money into a pension/SIPP, and off Hector's radar.

[Danbro]

Making more money

I've got a bit in the business account, I'm getting crap interest even in business deposit account(2% abbey).
Whats my options for investing limited company money?
Can I buy Bonds, funds, ETF's, Gold, gritting salt?
If so how do I buy them?

Ta

You can invest your company money into the items, salt maybe a more short term investment or long term if the snow clears this week, may have to wait another 30 years for these conditions, anyway....

Although you can make such investments via your company, from a tax point a view I would not suggest this. The pro's and cons of a company investment are..

Pro's - Only 1 - You can use your company funds which will save having to distribute these as a dividends and therefore save personal tax at 25%

Con's - Many of these

1) Any gain in you company will be taxable at 21% (corporation tax), then this gain will still need to be distributed to you as a shareholder, a further 25% tax ( effective tax rate 40.75% )

2) Personal investments will be taxable at 18% flat rate, after the tax free allowance below, no double tax charge

3) You also receive no allowances, personally you would receive an annual tax free amount on gains of £10,100, per person, no such allowance for companies

4) Finally, Investments via your company can lead to your company being seen as an investment company, the consequence of this would be you paying 28% corporation tax on all company profits, also would bring a loss of allowances such as entrepreneurs relief.

Generally, you would be seen as an investment company if 20% of your activity was investments, this would be 20% of sales, assets, management time.

Summary

In summary, it would only be advised to invest via your company if it was a long term investment, even then I would say invest personally for the reasons above

Thanks

Neil

[willwander]

I've got a bit in the business account, I'm getting crap interest even in business deposit account(2% abbey).
Whats my options for investing limited company money?
Can I buy Bonds, funds, ETF's, Gold, gritting salt?
If so how do I buy them?

Ta