Limited Company - Investment Possibilities

Chris_Justice

Hi,

I'm currently a director of my own little limited company. After taking a salary and dividends to maximise tax benefits there is still a decent amount of profit left in the company. On top of this is money which I owe as corporation tax. According to my accountant my first payment isn't due until mid 2013 so that money will just sit in my business account accruing a small amount of interest until then.

What i'd like to do is invest this money in some way and make it work for me. Does anyone have any experience of this? I quite like the idea of loaning myself the money and buying some premium bonds and then returning it before tax is due but I think this has implications as a benefit in kind. I have asked this same question of my accountant but thought i'd put it out to the world as well in case anybody has any novel ideas!

Cheers,

Chris

dunstonh

investments are a bit tight for the timescale. The investment bond wrapper is sometimes considered for corporate as you can defer gains until a later business year when corporation tax is lower. However, it does look like you are not looking at investments but deposits. There is less choice available and rates are typically poorer.

I quite like the idea of loaning myself the money and buying some premium bonds and then returning it before tax is due but I think this has implications as a benefit in kind.

Your account is likely to put you off that and that ignores the awful premium bonds.

Thrugelmir

Chris_Justice wrote: »

Hi,

I'm currently a director of my own little limited company. After taking a salary and dividends to maximise tax benefits there is still a decent amount of profit left in the company. On top of this is money which I owe as corporation tax.

The disavantage of operating through a limited Company as a contractor.

If you were a sole trader you could have an offset mortgage or use the One account. Thereby utilising the money to your advantage.