Reply to: RBS business account linked to Offset Flex personal mortgage?

[northernladuk]

NLUK

You are clearly not doing your job properly, have you used the search button on this forum ???

17 posts in is a little late for this amusing anecdote.

[platforminc]

NLUK

You are clearly not doing your job properly, have you used the search button on this forum ???

[DigitalUser]

Be interested to see how this goes.....

But I do wonder what HMRC would think of it all. Regardless of whether money is moving from A to B, personally, you are still getting a benefit out of the deal surely?

What would it have to do with HMRC though? It is a commercial arrangement which does not provide any tax advantage. The fact that an advantage is provided against a financial product has nothing to do with them. If RBS do indeed offer this arrangement, that is their choice.

[psychocandy]

Be interested to see how this goes.....

But I do wonder what HMRC would think of it all. Regardless of whether money is moving from A to B, personally, you are still getting a benefit out of the deal surely?

[northernladuk]

Wasn't aware RBS have any offset offers at the moment ?

Barclays seem best for offset mortgages (IMO) as you can also include your cash ISA accounts for offsetting as well as the standard savings pot.

Yep, they are offering 4%, 499 arrangement fee with no early redemption penalty. That is to an existing account holder though.

[kaiser78]

Wasn't aware RBS have any offset offers at the moment ?

Barclays seem best for offset mortgages (IMO) as you can also include your cash ISA accounts for offsetting as well as the standard savings pot.

[northernladuk]

Its not like the first sentence of what you posted kinda gives it away



And you wonder why you have lost your crown

KUATB

I got my crowning for talking rubbish about things I know nothing about. This seems to still fit in

[SimonMac]

Its not like the first sentence of what you posted kinda gives it away

Your business
You need to be in business as a sole trader or simple partnership.

And you wonder why you have lost your crown

[northernladuk]

Offset accounts need to all be in with the same name. It may be doable via a deed of trust (the argument is that the offsetting of loans if the bank went belly up is better than the government £85k guarantee) however it needs to be setup 100% right and the HMRC recently won a case on it a couple of months back due to account the money was in (the person doing it did sound like a muppet however).

If RBS allows separate accounts to be used for the offset that would resolve the issue HMRC had with kermit but I wouldn't think its worth the risk.

Back in 2009 though I would have considered due to the risk of bank collapse. Nowadays I doubt its worth the HMRC risk.

Yeah I saw that and remember it was a dodgy setup from start to finish and looked like a total scam to me and I don't know the legalities around it. Am not really bothered about trying this route, too risky for me personally.

[northernladuk]

It's even in the RBS quote in your OP

It did but when I spoke to the guy on the phone when applying for the mortgage I asked about LTD and he went away to speak to someone and confirmed a LTD would be ok so was hoping he was right and the webpage was either worded wrongly or there was something else not on the site they could do. Am waiting for the mortgage guy to ring me back so I can be absolutely certain. It's looking like he made a mistake but worth confirming.

[jmo21]

Dammit. You are quite correct Mr.Whippy. I assumed they had missed us off or something but just asked them this question and they will not take LTD's. Interestingly the guy explained it isn't anything to do with the bank and it's products. They can't offer this type of set up due to problems getting it past HMRC.

Bolshie mentioned something in a thread a few mins ago so just gonna see what his set up is but apart from that it's back to the drawing board I guess.

It's even in the RBS quote in your OP

You need to be in business as a sole trader or simple partnership.

[eek]

Dammit. You are quite correct Mr.Whippy. I assumed they had missed us off or something but just asked them this question and they will not take LTD's. Interestingly the guy explained it isn't anything to do with the bank and it's products. They can't offer this type of set up due to problems getting it past HMRC.

Bolshie mentioned something in a thread a few mins ago so just gonna see what his set up is but apart from that it's back to the drawing board I guess.

Offset accounts need to all be in with the same name. It may be doable via a deed of trust (the argument is that the offsetting of loans if the bank went belly up is better than the government £85k guarantee) however it needs to be setup 100% right and the HMRC recently won a case on it a couple of months back due to account the money was in (the person doing it did sound like a muppet however).

If RBS allows separate accounts to be used for the offset that would resolve the issue HMRC had with kermit but I wouldn't think its worth the risk.

Back in 2009 though I would have considered due to the risk of bank collapse. Nowadays I doubt its worth the HMRC risk.

[northernladuk]

Think this is only valid for sole traders or simple partnerships. I had a look into this with Clydsedale but not sure it's valid for Ltd Co's.

Dammit. You are quite correct Mr.Whippy. I assumed they had missed us off or something but just asked them this question and they will not take LTD's. Interestingly the guy explained it isn't anything to do with the bank and it's products. They can't offer this type of set up due to problems getting it past HMRC.

Bolshie mentioned something in a thread a few mins ago so just gonna see what his set up is but apart from that it's back to the drawing board I guess.

[Lockhouse]

Think this is only valid for sole traders or simple partnerships. I had a look into this with Clydsedale but not sure it's valid for Ltd Co's.

It isnt. If it was, we'd all be doing it.

[Mr.Whippy]

Think this is only valid for sole traders or simple partnerships. I had a look into this with Clydsedale but not sure it's valid for Ltd Co's.