moving business money to get a better rate

clarkyp

Hi All;

this is my first post and im looking for a little advice
I have just set up my first business this March. this year. It is a limited company and follows the usual and correct routes.

Now i have built up a some profit within the business but the current bank I am holding the money in is paying me no interest. I realise i have corporation tax, and NI etc ,to pay at the end of 18th months.

My question is, can i move all this money out into a higher rate personal account to realise more interest and then move it back when the time comes to pay this balance.

If this is in the wrong section please can you move

Thanks all!

cottager

I'll have a go with some of this, but I've no experience of limited companies so can't answer the part of your question about whether moving funds to a personal savings account would be allowed (but see * below).

As for the rest, on this board take a look at the Stickies at the top of the list of posts, where there's one for Top Small Biz Savings Accounts.

Martin's article on Small Business MoneySaving includes savings accounts:
http://www.moneysavingexpert.com/banking/small-business#savings
* Included here is:
"If you have a limited company then legally the company is an 'entity' and the money belongs to it not you. If you therefore tried to move money into your own name it will trigger a tax liability."

Business savings are also posted about sometimes on the Savings & Investments board.
There's a little in Martin's Top Savings Guide:
http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#biz
but possibly nothing which isn't in the first link above.
On the S&I board there was also this thread not too long ago:
http://forums.moneysavingexpert.com/showthread.html?t=2055271
which discusses business savings.