Reply to: Question regarding directors loan and BIK

[cojak]

I think that all the advice that can be given has been given so I'm closing this thread.

[TykeMerc]

Investing spare cash after tax in risky instruments is one thing , putting cash you owe to hmrc for vat on risk free 3% where you need to withdraw it every 3 months is something else

Nope in that thread you said investing the money not drawn down as dividends, but what the hell, why bother to keep things consistent?

People have told you that what your most recent "bright idea" (ok, it's a bonehead idea really)amounts to, I'm sure we would love you to do it and get brutally molested by HMRC as a result.

[northernladuk]

Investing spare cash after tax in risky instruments is one thing , putting cash you owe to hmrc for vat on risk free 3% where you need to withdraw it every 3 months is something else

Yeah it's called possible tax evasion... Still...

[diseasex]

Well you claimed that you were a whizz at investing the funds spare in your Ltd accounts, yet you've only just started contracting according to your own posts, it's somewhat inconsistent, to the point of looking like it's a total fabrication.

http://forums.contractoruk.com/futur...-2016-a-7.html

Your posts on that thread for example, if you did what you claim in there it would mean you haven't the money spare to try the absurd financial acrobatics and wild stupidity in this thread.



Your accountant can and will clarify the truth on that in a 2 minute call. Absurdity.

Investing spare cash after tax in risky instruments is one thing , putting cash you owe to hmrc for vat on risk free 3% where you need to withdraw it every 3 months is something else

[TykeMerc]

what exactly are you talking about? i was considering using vat and CT money for interest. But i guess, based on opinions , its not worth the risk as its pennies..
Dude your paranoia isnt funny anymore

Well you claimed that you were a whizz at investing the funds spare in your Ltd accounts, yet you've only just started contracting according to your own posts, it's somewhat inconsistent, to the point of looking like it's a total fabrication.

http://forums.contractoruk.com/futur...-2016-a-7.html

Your posts on that thread for example, if you did what you claim in there it would mean you haven't the money spare to try the absurd financial acrobatics and wild stupidity in this thread.

Maybe I expressed my question wrongly: based on what I've understood on hmrc website ( I believe it's quite ambiguous) l don't need to pay bik if I'd submit accounts that didn't have director Loan on it . Hence my question. I guess I can't

Your accountant can and will clarify the truth on that in a 2 minute call. Absurdity.

[diseasex]

Keep it below 10K and repay before the deadline and there's no issue, if you record it. There is no "before anyone notices", since if HMRC investigate you, they'll spot the money leaving your business account. Your accountant will notice the transaction when he does the accounts - or doesn't he see your bank statements?

If you take <£10'000 and don't record it, and you are investigated, HMRC will go over your accounts with a fine-toothed comb once they've spotted unaccounted transactions. If you take more (or repay too late), then you're looking at prosecution for evasion.

Can you see now why some members think you are trolling? You're certainly asking some spectacularly stupid questions.

Maybe I expressed my question wrongly: based on what I've understood on hmrc website ( I believe it's quite ambiguous) l don't need to pay bik if I'd submit accounts that didn't have director Loan on it . Hence my question. I guess I can't

[NotAllThere]

If you guys say so
i had an itch to hide it and repay back before anyone notices, and pocket the interest...

Keep it below 10K and repay before the deadline and there's no issue, if you record it. There is no "before anyone notices", since if HMRC investigate you, they'll spot the money leaving your business account. Your accountant will notice the transaction when he does the accounts - or doesn't he see your bank statements?

If you take <£10'000 and don't record it, and you are investigated, HMRC will go over your accounts with a fine-toothed comb once they've spotted unaccounted transactions. If you take more (or repay too late), then you're looking at prosecution for evasion.

Can you see now why some members think you are trolling? You're certainly asking some spectacularly stupid questions.

[diseasex]

Awww and this is after you wobbled on about investing your money in the business. Since you also claimed you're relatively new to the contract game, only 1 or two contracts in as well, there's no inconsistencies in the tales you're posting are there? If you're going to troll at least get your story vaguely straight.

Please, please, please, fill your boots and get done for criminal evasion, it would at least add some flavour to your trolling, it would give us all a good laugh.

what exactly are you talking about? i was considering using vat and CT money for interest. But i guess, based on opinions , its not worth the risk as its pennies..
Dude your paranoia isnt funny anymore

[TykeMerc]

If you guys say so
i had an itch to hide it and repay back before anyone notices, and pocket the interest...

Awww and this is after you wobbled on about investing your money in the business. Since you also claimed you're relatively new to the contract game, only 1 or two contracts in as well, there's no inconsistencies in the tales you're posting are there? If you're going to troll at least get your story vaguely straight.

Please, please, please, fill your boots and get done for criminal evasion, it would at least add some flavour to your trolling, it would give us all a good laugh.

[AnotherGuy]

Not interested in risking company money, was after 100% sure interest in monthly intervals

It is quite low risk actually. In fact in 5 years they've been in business nobody have ever loose money, as defaulted loans are repaid from a provision fund. Other P2P are more concerning.

The risk would be a massive default bankrupting the provision fund. That's why even considering it low risk myself, I don't put all the eggs there, only a part. Just in case...

It was just an idea.

[diseasex]

There is no need to overcomplicate things.

You can open a company RateSetter (P2P lending) account where you can stick a big chunk of money (all of it if you want to and are willing to take the risk) for 1 year or, monthly if you prefer.

I put all the money I'm going to need to pay VAT and potential corporation tax in a savings account in my business bank at 0.75% and the rest goes to RateSetter at ~3.3% monthly. Yearly it would be more, around 4.5% but I'm happy with monthly for now.
I have also a personal RateSetter account where I stick my personal money.

Send me a private message if you want to open an account, I can refer you and you will be credited £50
(I don't want to spam with my referrer link obviously)

Not interested in risking company money, was after 100% sure interest in monthly intervals

[AnotherGuy]

There is no need to overcomplicate things.

You can open a company RateSetter (P2P lending) account where you can stick a big chunk of money (all of it if you want to and are willing to take the risk) for 1 year or, monthly if you prefer.

I put all the money I'm going to need to pay VAT and potential corporation tax in a savings account in my business bank at 0.75% and the rest goes to RateSetter at ~3.3% monthly. Yearly it would be more, around 4.5% but I'm happy with monthly for now.
I have also a personal RateSetter account where I stick my personal money.

Send me a private message if you want to open an account, I can refer you and you will be credited £50
(I don't want to spam with my referrer link obviously)

[northernladuk]

If you guys say so
i had an itch to hide it and repay back before anyone notices, and pocket the interest...

Cool. Don't they call that tax evasion though?

[diseasex]

If you guys say so
i had an itch to hide it and repay back before anyone notices, and pocket the interest...

[northernladuk]

Better still check out the Aldermore business savings account and stay away from all this marlarky
http://www.aldermore.co.uk/business/business-savings/