Business Account: Where to put my money??

sionsmith

Morning everyone,

I've done a little searching around the site and found mixed answers to my question which is:

"I own a IT consultancy which bring in about 10k a month, its a limited company & I have my bank account with Barclays. The account pays very little interest, so I just have about £15k sitting there doing nothing. I am VAT registered on a flat the flat scheme at 12% for my 1st year. I have filled all my personal ISA's for this tax year, so my question is WHERE should i put the money between VAT returns & corporation tax in 2 years time?"


Any suggestions would be greatful, i've looked at cater allen's & alliance-leicester savings accounts but not sure?

Thanks in advance

Sion Smith

sionsmith

Anyone with any suggestions ?

isofa

Set-up a business holding account which pays better interest and move funds between this and your business current account

Pay yourself bigger dividends to take more money out of the accounts legally, if you are bringing in 10K a month, you are talking about 1500 VAT element, and once a year a big corporation tax bill, so just ensure you have enough for that time.

Or get your accountant to work out a directors loan account, where in effect you can withdraw as and when you please, but making sure you have enough funds when needed.

johnllew

Kaupthing Singer & Friedlander pay good rates on business monies:

http://www.kaupthingsingers.co.uk/deposits

If you've got £100k, you can get up to 6.25% on one year Money Market

or for £25k, you can get 5.75% AER on 180 day notice.