Etoro and Company Income

Poshsalt

Hi,

If I have invested in etoro from a company bank is that ok? Or does that etoro account have to be a company account?

I took company money and put it into etoro and thought by using company money to buy investments like shares, I didnt think it being etoro had to be a company account was even a thing.

maxsteam

It's ok with me. Is it ok with the company and with eToro?

Thrugelmir

Why are using Company funds to invest?  Presumably the trading account is in your name not the company's. 

steampowered

If you are using company money to invest, the investments belong to the company. Not to you personally.

If you are using company money but you want the investments to belong to you, then what you are really doing is paying yourself a dividend, and using the dividend to invest. In which case you need book a dividend in the company accounts and pay the income tax on the dividend on your tax return. 

It's an issue for your company accounts and your tax return. I doubt eToro are fussed. 

Poshsalt

Thrugelmir said:

Why are using Company funds to invest?  Presumably the trading account is in your name not the company's. 

Please explain more?

I'm using company funds, because I thought when you take money out personally salary you be taxed more on it. So are you saying its best to take out as much as possiable through dividends then invest with that?

You see my accountant said if I put from my company account and invest in etoro then because etoro is a personal account then i'll have to pay a higher tax band as its classed as personal income.

I'm lost.

Thanks for your help everyone

Thrugelmir

Poshsalt said:

Thrugelmir said:

Why are using Company funds to invest?  Presumably the trading account is in your name not the company's. 

Please explain more?

I'm using company funds, because I thought when you take money out personally salary you be taxed more on it. So are you saying its best to take out as much as possiable through dividends then invest with that?

You see my accountant said if I put from my company account and invest in etoro then because etoro is a personal account then i'll have to pay a higher tax band as its classed as personal income.

I'm lost.

Thanks for your help everyone

  You are taking the money out for personal use. The investments are held in your name not the company's. 

Alexland

If you are taking company money out without paying income tax or declaring dividends to invest in your own name this would likely be considered a directors loan. Your accountant should be giving you professional advice with regard the correct accounting treatment of this money and resulting tax implications.
https://www.gov.uk/directors-loans

Poshsalt

So have I cocked up?

I took all the company money (from company account) and put it into Etoro for stockmarket/crypto then lost half of it. I thought that the lost would be counted as a capitial gains loss. Etoro is changing the account to company but it will have to reopen as a company account.

But your saying even if I took the money out of a company account, it counts as personal?

Whats the best out come for this?

Poshsalt

ok thanks for you help,

I used to have an accountant but he didnt hand in the accounts on time an I was getting letters to go to court so I had to pay a fine for late filing, thats why I kinda dont try to look into as much as I can, but im now looking for a new accoutant.

maxsteam

Poshsalt said:

You see my accountant said if I put from my company account and invest in etoro then because etoro is a personal account then i'll have to pay a higher tax band as its classed as personal income.

There are many brokers out there who are members of recognised stock exchanges. A proper accountant should be pointing you in that direction rather than etoro, imho. Please don't get drawn in to the idea that there's easy money to be made just by "following" others.

If you want to invest in a personal account, then the account should be in your name and the money transferred from the company account to your personal account (as salary or dividend) and from there into the investment account. If the etoro account is in the company name, then it will be the company's money that is being gambled.