I have 80K and I'm young , what to do ?

pjcox2005

I think you've got a few areas:


-pensions would be a clear one to take cash out of the company without suffering tax and allowing you to invest and save for the future.
- future business opportunities you may wish to do in a corporate structure so you don't have to incur tax taking funds out of the company before investing - this may be relevant to property investments in particular to keep interest deductions as well on any mortgages. Need to be aware around things like entrepreneurs relief though if you were ever looking to sell your existing business.
- If the funds are already held by you directly, then a LISA would be a definite for the 25% uplift if you haven't owned a house yet as no doubt you will want to in the future.
- After pensions and LISA, i'd be maximising a stocks and shares ISA (again assuming you've extracted the cash from the company). Get advice or keep it simple with something like the Vanguard lifestrategy funds - there is talk about markets being high so it may dip to start with but the key is always time invested in the market and it's a long term play - lots of threads around this on here.


Other options are things like savings accounts, but your focus is probably keeping funds under £85k with each bank (taking into account those owned by the same people) to get the Government protection.


Oh and make sure you enjoy some of that money too! Congrats

AndyPK

You should also get a help to buy ISA (or whatever they are called).
And then purchase a house in ~2 years time or when ever you are ready.

Dazed_and_confused

It doesn't actually seem to be the op's money yet so not sure help to buy ISA can be used.

bengalknights

Has the 80k been paid to you as dividends or is it sitting still to pay corporation tax on?

PasturesNew

roadblock15 wrote: »

My mate sells pirate copies of films, software, and music and makes over £2k a month at car boots

Until Trading Standards catch up with him and he goes to jail.

Dazed_and_confused

Forgot to mention that i already have a business account with all my funds in and pay myself a wage each month but leave the majority of my money in a LTD company business bank account , this is the money that i would like to do something with

From an earlier post by the op

bengalknights

Dazed_and_confused wrote: »

From an earlier post by the op

Ah ok that clarifys that part.

OP depening on how quick you would need the funds i would recommend instant saver accounts (for paying VAT/Tax) and corporate/treasury bonds.

If you want a riskier options P2P corporate loans is another area.

atush

Set up a pension and pay into it via the ltd company. Reduces corporation tax.

Consider paying your self some dividends. That can be invested/saved for future property or any other purchace. Setting up a S&S isa would be a good idea.

Thrugelmir

savage444 wrote: »

ll my funds in and pay myself a wage each month but leave the majority of my money in a LTD company business bank account

Isn't your accountant giving you some advice or at least direction?

roadblock15

Pie in the sky, 80k must be a typo for £80... no money in self employment in England these days.