Leave money in business account for mortage deposit

[MrMarkyMark]

I knew a few contractors that had offshore accounts and this is how they spent the money without declaring it or any UK paperwork showing transactions. I guess the systems are smarter these days and HMR&C are linked to every cash machine in the UK now.

Back in the Java skills shortage and Cayman Island days

[DimPrawn]

Have you got a company debit card? Just start taking it out from a cash machine a couple of hundred quid at a time and keep it under the bed. Then you won't have to pay any tax.

I knew a few contractors that had offshore accounts and this is how they spent the money without declaring it or any UK paperwork showing transactions. I guess the systems are smarter these days and HMR&C are linked to every cash machine in the UK now.

[jonneymendoza]

Quality thanks,

some good info here. will also ask my accountant about this.

cheers

[ASB]

Hi .

Is it better to leave money that will be used as a deposit for a mortgage in your business account or better to start taking it out and putting it into a savings or your main current account?

Whats peoples views on this?

If i leave it in business account and take out say 100k, does that mean that i will then also have to pay 30/40% tax on that ie 30/40k as tax dividends?

If you declare dividends you do not have to physically pay them. They can be nominally paid to the directors current account and wait there until drawn. Obviously the value of them needs to be declared on you SATR and could lead to additional tax dependant upon the value.

If you simply declar 100k in one year then yes, obviously you will be taxed accordingly so there with be tax to pay on the amount beyond the basic rate band and any special dividend tax to pay.

It might be worth looking at a help to buy ISA, whilst the amounts that can be put in are no great (1k plus 200/month) you can get 4% gross, also a 25% bonus max 3k when buying that first property.

Certainly if the funds are available it would be sensible to declare dividends to a level which uses your basic rate band.

Further down the line if there are significan retained funds you might want to consider MVL and the extraction of funds through the capital taxes regime to reduce exposure, but for this you need to be at least theoretically ceasing trade.

There is no easy strategy. But if you get the cash you pay the tax. Beyond your basic rate you are going to be paying something at some point.

[VectraMan]

Have you got a company debit card? Just start taking it out from a cash machine a couple of hundred quid at a time and keep it under the bed. Then you won't have to pay any tax.

[PurpleGorilla]

Personally I take the money out when I can and stick it in an ISA. At least it earns some interest then. Also huge cash reserves in the business seems an easy grab for HMRC?

[DaveB]

Hi .

Is it better to leave money that will be used as a deposit for a mortgage in your business account or better to start taking it out and putting it into a savings or your main current account?

Whats peoples views on this?

If i leave it in business account and take out say 100k, does that mean that i will then also have to pay 30/40% tax on that ie 30/40k as tax dividends?

You really do need to talk to your accountant about this. Get them to explain tax liabilities on dividends as they are going to change from April next year.

[MrMarkyMark]

Hi .

Is it better to leave money that will be used as a deposit for a mortgage in your business account or better to start taking it out and putting it into a savings or your main current account?

Whats peoples views on this?

If i leave it in business account and take out say 100k, does that mean that i will then also have to pay 30/40% tax on that ie 30/40k as tax dividends?

Give me the 100K, I will be more than happy to look after it for you

[Martin Scroatman]

Hi .

Is it better to leave money that will be used as a deposit for a mortgage in your business account or better to start taking it out and putting it into a savings or your main current account?

Whats peoples views on this?

If i leave it in business account and take out say 100k, does that mean that i will then also have to pay 30/40% tax on that ie 30/40k as tax dividends?

You'll have to pay 7% dividend tax after April. Thats' even baefore you start to think about tax bands!

When I'm taking out a large chunk I tend to split it over 2 financial years s0 if I want £10k I'll take the £10k now, declare half as a divined and the opther half as a loan and raise a peper dividend for it in the following financial year.

I hope this hepls.

[northernladuk]

Why don't you ask you accountant what the most efficient method is depending on your timescales and your personal situation. Dunno how you expect to get a straight answer with only half the bloody details. Jesus.

[jonneymendoza]

Hi .

Is it better to leave money that will be used as a deposit for a mortgage in your business account or better to start taking it out and putting it into a savings or your main current account?

Whats peoples views on this?

If i leave it in business account and take out say 100k, does that mean that i will then also have to pay 30/40% tax on that ie 30/40k as tax dividends?