Reply to: MONEY - Business Account / Offset Mortgage

[BolshieBastard]

Look, unless you've got money held by Dodgey Bank your money is safe ffs!

Some people just want to talk doom and gloom.

[blacjac]

I understand all the risks, but (devils advocate) are the HMRC really going to care what happens to the money in your business account as long as you pay your tax on time? No, it isn't MY money, it's my Ltd Co's money, but I earned it and should have the right to make it work for me (maybe not the VAT!).

Erm, yes.

Because the minute you benefit from the company's money, that benefit is taxable.

You say in a later post you took the money out of the business account to do it. I hope you declared it as a directors loan, or a dividend or salary, otherwise it's theft, or possibly embezzlement (sp?).

[expat]

I couldn't actually browse the link as it's blocked by my web filter, so i'm saving it for 'later'.

But yes, i too think it's pretty safe to assume it's the good old US of A - probably down south somewhere.

Not the sort of thing that a Tory MP would be caught dead doing, then?

[Dante]

I couldn't actually browse the link as it's blocked by my web filter, so i'm saving it for 'later'.

But yes, i too think it's pretty safe to assume it's the good old US of A - probably down south somewhere.

[ratewhore]

He was wrong.

Oh - OK. Shame I didn't have you as my barrister.

Dante, without looking, can I assume that is in America?

[Dante]

The mortgage lender quite happily will (as long as you're willing to pull it out of a business account...).

IMHO -Anything you can do to improve your own personal situation and ensure you don't need to rely on the state for anything as you age is a good thing - certainly in this case when no-one loses out.

Thats my story and i'm sticking to it anyway.

[Lewis]

I'll admit to have thought about taking the risk on this one now and again.

I know at least three contractors who have done it (i know that doesn;t make it rght) - one of which paid his mortgage off in three years simply because he wasn't paying any interest on it at all.

I understand all the risks, but (devils advocate) are the HMRC really going to care what happens to the money in your business account as long as you pay your tax on time? No, it isn't MY money, it's my Ltd Co's money, but I earned it and should have the right to make it work for me (maybe not the VAT!).

I think the risk may be worth the reward - me and the missus have 50k in our ltd co's accounts - and with say £100k mortgage this would save us £250 per month and that would go straight into paying off capital - helping us pay the thing off in half the time. (How about if i offered to donate £50 of that to charity every month?)

If you changed yoru business bank account every two years and did everything else above board - you'd be very unlucky to get caught.

Bottom line is - has anyone ever been 'done' for this?

Surely no bank should allow the offsetting of a business account with a personal mortgage ?!?!

Sandyman - who do you bank with?

[expat]

So was the judge when i got divorced. He said the business is me and the money is mine and cannot be cloaked behind a Limited Company.

Guess it depends who you're talking to...

He was wrong.

Good point though: if you own a Ltd Co that has 100k, then you are worth 100k although you do not actaully have it as your own money. If that is so, then why won't the mortgage lender let you offset it?

[Dante]

I beg to differ:

Man Arrested For Having Sex WIth A Chicken At A Motel

[ratewhore]

Bottom line is - has anyone ever been 'done' for this?

I don't think anyones been done for rutting with a chicken. Doesn't make it right...

[Dante]

I'll admit to have thought about taking the risk on this one now and again.

I know at least three contractors who have done it (i know that doesn;t make it rght) - one of which paid his mortgage off in three years simply because he wasn't paying any interest on it at all.

I understand all the risks, but (devils advocate) are the HMRC really going to care what happens to the money in your business account as long as you pay your tax on time? No, it isn't MY money, it's my Ltd Co's money, but I earned it and should have the right to make it work for me (maybe not the VAT!).

I think the risk may be worth the reward - me and the missus have 50k in our ltd co's accounts - and with say £100k mortgage this would save us £250 per month and that would go straight into paying off capital - helping us pay the thing off in half the time. (How about if i offered to donate £50 of that to charity every month?)

If you changed yoru business bank account every two years and did everything else above board - you'd be very unlucky to get caught.

Bottom line is - has anyone ever been 'done' for this?

[ratewhore]

...but its money is not my money, and HMRC for example are perfectly clear about that.

So was the judge when i got divorced. He said the business is me and the money is mine and cannot be cloaked behind a Limited Company.

Guess it depends who you're talking to...

[Lewis]

Furthermore I have used another business account to offset my mortgage by 50K plus

NO NO NO You cannot do this. The business money is not yours!

[expat]

Can anybody help me out here

I have more than 35 K in my business account

Really? I don't have anything in my business account, in fact I don't have a business account. I own a Ltd Company that does have a business account; but its money is not my money, and HMRC for example are perfectly clear about that.

[dezze]

Can anybody help me out here

I have more than 35 K in my business account

Furthermore I have used another business account to offset my mortgage
by 50K plus


Q1 Is my 70K in my business account safe ?
Q2 Is the 50K + I have offset against my mortgage safe ?

Is the mortgage in your name? Can you offset it using an account held by your company? - assuming that's what you mean by 'business' account.