tax implications of protecting money in current times

silvercar

At certain times of year, my limited company holds large cash reserves in the bank. Although with a major UK bank, I would like the reassurance of knowing that the money is safe should the bank go belly-up.

From the FSA/ FSCS guidelines I know that small companies are protected to the individual limit of 50k. I would like to protect more of it.

My attempts to "spread the money around" have not been successful, other banks I've spoken to are not willing to open a business savings account unless I have a business current account with them and I dont want to move the current account.

Would it be possible to transfer the money into my name and hold it in another bank at the same time declaring that the funds and money belong to the company. I dont want to transfer the money permanently into my name as that would incur a 40% personal tax liability, to transfer to my name and have the money for my use at that time would incur a benefit, reportable under P11D and taxable.

I know that savings in a joint account can be reported to the revenue as for the beneficial ownership of one party to reduce the tax liability on the interest, so I wondered if a similar thing with company money would be allowed.

johnllew

There are a number of institutions that take business deposits without needing current accounts. Here are six: http://www.moneyfacts.co.uk/business/bestbuys/business-investment.aspx

What you plan would probably create a lot of problems and isn't to be recommended.