Investment Portfolio help please!

kangoora

I think you're missing a decent proportion of tax free savings. Given you have £8-£10k/month 'surplus' income you can almost max your annual allowance (even if just at 20% relief) for a payment of 'only' £2.5k/month (2.5 x 1.25 x 12 = 37,500) - government gives you £7.5k year.

Not sure how this works with being paid dividends but your company could contribute I believe which would then give you deductions against tax on the company.

You can't get at it until 58 but if you look on the bright side it is sheltered from bankcrupty, CCJs, inheritable by beneficiaries without any tax before age 75 etc in case something goes dreadfully wrong over the next 30 years.

Radiantsoul

I think you probably do need a tax accountant as your situation is a little more complex(you are going to have a lot of income outside of tax sheltered investments). You will probably hit the lifetime allowance on pensions in a relatively short timescale and can only shelter a portion of your cash in ISAs.

I think TheTrackers ideas make some sense, but you probably need your business partner to agree to liquidate the company!

NoviceInvestor1

TheTracker wrote: »

A further option is to use the jointly held company as a holding company, each of you own separate companies, and invoice the holding company. You'd then be free to disburse funds independently in the manner you see fit. This option comes with its own pros and cons that an accountant can advise you upon. Your company must be making 3-400k profit so tax efficiency is key. Much depends on your business plan. If your company grows even 2 fold tax implications will increase.

If you're a novice investor I'd tread lightly in your first forays. I hazard a guess most seasoned investors tripped up early, but it's best to trip when you have limited funds.

This option sounds interesting and something I would like to do a bit more research into. To be honest I asked my accountant about other limited companies and how it could be structured to allow some profits to be retained in the business/a business but specifically for me/in my name/not my business partner in this instance, but he didn't seem to know.......

Ref business plan, the company is going to stay this size (the 2 of us) and revenue should fairly consistently be around £360k-£500k barring an economic downturn/anything bad happening to either of us. I think the main takeaway from this thread has been that the input of my accountant to date and the ad hoc advice from my wealth manager mate probably isn't enough to see me through in terms of coming up with a conclusive plan/strategy.....

NoviceInvestor1

Radiantsoul wrote: »

I think you probably do need a tax accountant as your situation is a little more complex(you are going to have a lot of income outside of tax sheltered investments). You will probably hit the lifetime allowance on pensions in a relatively short timescale and can only shelter a portion of your cash in ISAs.

I think TheTrackers ideas make some sense, but you probably need your business partner to agree to liquidate the company!

Thanks, I am inclined to agree. Our accountant is a great guy, really proactive and keen to go above and beyond to help but I kind of felt he was a little out of his depth when I was asking him some questions ref setting up other limited companies, using a limited company as an investment vehicle so as not to need to withdraw money and pay higher rate tax on it only to leave it sat in a current account etc etc. The business has been up and running about a year, so apologies if I am sounding very naive about this. There is a lot to learn going from PAYE to having your own Limited company! From what you have said it sounds like there specific accountants that specialise/have expertise in tax as opposed to just being generalist accountants? Again, I need to look into this assuming this is the case.

Thanks again.