Reply to: How do you manage your Ltd Co Surplus cash?

[richy]

Secure Trust Ltd co deposit acount, 120 day notice

Just get a 120 day notice biz deposit account from Secure Trust Bank. pays 3% gross interest.

[Stan]

Regarding offsetting - another option is to take a directors loan, downside is you have to pay BIK on the notional interest. Oh and get good at juggling

[jmo21]

Worth a look - but needs 3 months notice for withdrawals: Investec Business High 5 - Home

Minimum balance £50k to earn interest

[psychocandy]

Still crap mind aint they?

Still worth getting out as much as you can and sticking in personal savings.

[Hex]

Worth a look - but needs 3 months notice for withdrawals: Investec Business High 5 - Home

[tvr450]

Money Saving Expert site

Some useful info here - Saffron Building Society offering 2.25% at the moment - see the link here:

Small Biz MoneySaving: Banking, gas & elec, phones & web...

[psychocandy]

Santander seem to provide something useful in the business reward saver

Business Reward Saver: Santander Business Banking

You don't need a current account with them and it pays 2% over a year and 1.84% if you make one withdrawal.

if balance over 30k

[BillHicksRIP]

As per earlier question, is the government-guaranteed money in banks if they collapse also applicable to businesses? I read it was 85k max too.

[swebb]

Santander seem to provide something useful in the business reward saver

Business Reward Saver: Santander Business Banking

You don't need a current account with them and it pays 2% over a year and 1.84% if you make one withdrawal.

[psychocandy]

Same for me. I'm with Cater Allen. 0% interest.

[swebb]

I'd also be interested to know about any deposit business accounts any one has. I'm currently with Cater Allen which are very good but the rate they pay isn't great. I'm also concerned about the 50K gov guarantee on accounts (actually does this apply to businesses!!!). So I'd like to take a lump of the cash in the business and put it in a deposit account for say 6 months or so.

I've checked with Cater Allen and they do deposit account that can be anywhere from 1 week to 24 months which can be set up to be rolling. The money is locked away for the deposit period (no access). So it can be set up to be rolling for say 1 month so you can always get at the money after 30 days max. You need a minimum of 50K though. Current rates on 50k are:

1 month 0.65%
2 month 0.73%
3 month 0.96%
....
12 month 2.65%

Any idea's ?

[decentguy]

Which specific account is this? I can only see the Business Reward saver at 1.8 which only allows one withdrawal per year. Maybe this wasn't the case when you opened the account?
Santander PDF

Definetely seems that terms and conditions have changed. When I opened it, month in which you make withdrawal, you get lower interest rate. From what I see now, you can only make 1 withdrawal iin first 12 months which sucks.

[eek]

I am single so buggered there, but of course it has its advantages too

As to your last point. If you leave a warchest in your compnay though, you can use it when you need it and it is more tax efficient.

The only things that make it tax efficient is based on personal tax laws.

Keeping your warchest in the company doesn't make sense for me until you reach the point when you cannot remove any more cash from your company in an tax efficient way.

After that it really depends on how many savings you have elsewhere so personally I think keeping a warchest in the company is pointless.

Surely it is better to avoid paying any corporation tax on the surplus cash by putting it directly into your pension pot instead.

[jmo21]

I have opened a business savings account with santander and gives me safe 1.8% interest rate. I know its not high but at least its better than 0.1% offered by business current account

Best thing about this account is that money can be transferred anytime in case you need it for a rainy day

Which specific account is this? I can only see the Business Reward saver at 1.8 which only allows one withdrawal per year. Maybe this wasn't the case when you opened the account?
Santander PDF

[JamJarST]

My take based on the last time I paid attention to it is that you would have to be either single or very well paid not to be able to withdraw most of your company's income every year without paying much more than your corporate income tax.

I calculated that between me and my wife I can withdraw £50,000 in dividends at the lower rate tax band (based on what she is paid elsewhere) and pay myself £7,000.

Those two options alone before you look at pension payments or even expenses else cover a turnover of £67,000 or £300 a day.

Granted you may not be able to use much of your wife's tax allowance but I would prefer to have my warchest in my own account rather than my companies account.

I am single so buggered there, but of course it has its advantages too

As to your last point. If you leave a warchest in your compnay though, you can use it when you need it and it is more tax efficient.