Tax into a savings account

Contracts_Engineer

Hi all

Ive recently gone Self Employed, i have a business account and things are currently going swimmingly.

Im putting away around £320 a month to cover my possible class 4 NI bill and i will hit £30000 turnover around Christmas this year.

At this time i will go gross on my tax so im not stopped 20% at source.

With this in mind ill be putting away approx £1320 a month into savings to make sure i have the money there when im billed for tax.

Now my question is my business account is with lloyds but there business savings account is only paying 0.05% interest.

Could i keep my tax money in a personal saving account that would have a more favourable interest rate? My records could be kept just as easily from a personal account as a business account!

Thanks in advance

Pennywise

As long as you're a sole trader and not a limited company, yes, that's fine.

Contracts_Engineer

Ahhhhh i was looking maybe at going ltd in April next year.

So a LTD company would have to use a business account i take it?

agrinnall

Of course, it's then not your money, it's the company's money.