use business account to buy and sell on Amazon

[DigitalUser]

Very interesting, and if ratified by NW it sounds like its above board. I guess you would have to pay corp tax on the gains? but as long as you're making some money rather than sweet FA which is the current situation .. all good!

You do pay corp tax on gains, and interestingly enough you can claim on loans that default too as capital losses, which means it's preferable to use your company as an investment vehicle. The caveat to all of this is, as mentioned previously the amount of revenue generated by your investments - if considered significant (and this is entirely dependent on HMRC's interpretation) you risk losing any entrepreneurs' relief if/when you spun down the company.

[northernladuk]

Very interesting, and if ratified by NW it sounds like its above board. I guess you would have to pay corp tax on the gains? but as long as you're making some money rather than sweet FA which is the current situation .. all good!

Indeed but do your research carefully. There are downsides such as defaulters, not lending the money out you put in etc. You put 1k in but they then loan that out in 10 quid chunks and from what the forums say it's not going out very quickly so you don't get 5% (or whatever) on your 1k by any means... Zopa have a good forum on it...

Peer to peer lending: boost savings returns? - Money Saving Expert

Zopa Talk

[hgllgh]

I put a slice of my retained profit into Funding Circle. After defaults on loans the amount I invested was returning just over 5%. Ratified by my accountant (Nixon Williams) too so everything is above board.

Very interesting, and if ratified by NW it sounds like its above board. I guess you would have to pay corp tax on the gains? but as long as you're making some money rather than sweet FA which is the current situation .. all good!

[hgllgh]

Isn't that a lot of effort for very little returns?

Have you...
Taken your full year of dividends out in one go?
Loaned yourself most of the 10k allowed and invested somewhere? Looked an Aldermore account? Business Savings Account - Aldermore
Upped your pension contributions?
Employed your mother, kids, aunts etc?
Given shares to mother, kids, aunts etc?

General consensus is that there isn't really much you can do for good solid returns. Could try shares/bonds etc but you pay tax on the profits and tax to get it out of the company so hard to really make anything decent...

Have a chat with your accountant about the options...

Great pointers ... thanks.

Actually if look into Amazon FBA there are folks out there making good money for not too much effort. Amazon store and fulfill orders and manage returns etc... all you really need to do is pick the right products and manage the delivery to amazon warehouses

[northernladuk]

I put a slice of my retained profit into Funding Circle. After defaults on loans the amount I invested was returning just over 5%. Ratified by my accountant (Nixon Williams) too so everything is above board.

A good one! Yes any of the loan things will do although I read they are not doing too well. The cash that is loaned is hitting the rates but the cash isn't being loaned out fully.. Bulletin board on their site full of people moaning about only 10's being loaned etc..

[tractor]

...

I put a slice of my retained profit into Funding Circle. After defaults on loans the amount I invested was returning just over 5%. Ratified by my accountant (Nixon Williams) too so everything is above board.

Only in the last couple of weeks someone kindly posted a thread on using a Hargreaves Lansdown business account for investment purposes. It was quite informative and as long as your returns are not significant compared to your contracting income, you are unlikely to be challenged.

I can't be bothered to link but if you do a search, you will find it.

[DigitalUser]

Isn't that a lot of effort for very little returns?

Have you...
Taken your full year of dividends out in one go?
Loaned yourself most of the 10k allowed and invested somewhere? Looked an Aldermore account? Business Savings Account - Aldermore
Upped your pension contributions?
Employed your mother, kids, aunts etc?
Given shares to mother, kids, aunts etc?

General consensus is that there isn't really much you can do for good solid returns. Could try shares/bonds etc but you pay tax on the profits and tax to get it out of the company so hard to really make anything decent...

Have a chat with your accountant about the options...

I put a slice of my retained profit into Funding Circle. After defaults on loans the amount I invested was returning just over 5%. Ratified by my accountant (Nixon Williams) too so everything is above board.

[jamesbrown]

Perhaps the main risk you're thinking about is being classed as a Close Investment Company? As long as the company exists wholly or mainly for the purposes of trade (simplifying a little), it should be okay AFAIK.

[Clare@InTouch]

Most limited companies can do pretty much anything, as long as it's legal, so there's no problem with having different trades. You do need to consider the VAT implications though, as NLUK says.

Have a chat with an IFA about investment options. As long as it stays in the company name, and you can liquidate it to pay any taxes if necessary, then I'm sure there are some options available.

[northernladuk]

Isn't that a lot of effort for very little returns?

Have you...
Taken your full year of dividends out in one go?
Loaned yourself most of the 10k allowed and invested somewhere? Looked an Aldermore account? Business Savings Account - Aldermore
Upped your pension contributions?
Employed your mother, kids, aunts etc?
Given shares to mother, kids, aunts etc?

General consensus is that there isn't really much you can do for good solid returns. Could try shares/bonds etc but you pay tax on the profits and tax to get it out of the company so hard to really make anything decent...

Have a chat with your accountant about the options...

[eek]

As interest rates are so low (non existent for business account) is anyone using any stategies to put the warchest to work rather than being slowly devalued by inflation which is probably much higher than the official figures?

I was thinking of buying and selling on Amazon, but is it 'allowed'? So I would essentially be investing with company money to generate more profits for the company. I think there is some rule about not changing the nature of your business?

I assume you are not registered for Flat rate VAT?

[hgllgh]

As interest rates are so low (non existent for business account) is anyone using any stategies to put the warchest to work rather than being slowly devalued by inflation which is probably much higher than the official figures?

I was thinking of buying and selling on Amazon, but is it 'allowed'? So I would essentially be investing with company money to generate more profits for the company. I think there is some rule about not changing the nature of your business?