Business Savings account

carlsagen

Hi,

I have a 18 month old LTD company and doing ok. I have a fair old amount in my business savings account which i don't need for working capital (100k+). My current barclays savings account just doesn't anything.

I thought about paying corp tax early as my accountant told me they would send back the interest. But long term i need to make that cash work for me.

I also thought about loaning me the money and leaving it in my personal savings account to offset against my mortgage... (not actually spending it)

What suggestions do people have.

Suarez

There are implications to the company loaning you the money.

Firstly it will be treated as a benefit in kind and will have to pay NI on it.
Secondly you will pay 25% corporation tax on the loan if it remains unpaid 9 months after the period end.

Depending on your risk level you could use something like Funding Circle to generate a profit. Safest bet is savings interest.

bengalknights

You could purchase fixed bonds however it would be long term capital loss