transferring profit to an ISA

MattGoku

HI

I am planning on saving money for a deposit to buy property for my business. What would be the best strategy? Transfer the money to an ISA each year?

Also are there an implication and/or benefits to this?

Thanks

InsideInsurance

What is your legal structure? Sole Trader? Limited Company?

Obviously ISA is an individual savings account so wouldnt be possible for a LTD

martindow

Are you a sole trader or have you set up a company? If you are a sole trader you can put money where you like. As companies are separate legal entities I suspect you would be far more limited in what you can do.

MattGoku

Hi

I am a sole trader.

InsideInsurance

Then there is only "you" and you are free to invest the money in an ISA if you deem that appropriate.

Benefit? Its tax free. Disadvantages? With current rates it may be better to get a current accounts like FlexDirect or Lloyds Club which pay higher interest even factoring in tax depending on your rate.

Pennywise

Don't forget it's only the interest on it that would be tax free. You'd still have to pay tax on the business profit you make - putting money into an ISA isn't a valid deduction against profits.

MattGoku

What if I lent the money? Surely then no tax would have to be paid until the money is returned?

Suarez

MattGoku wrote: »

What if I lent the money? Surely then no tax would have to be paid until the money is returned?

Haha if only.