We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
Earnings Interest via Limited Company

flat_white_
Posts: 23 Forumite

in Cutting tax
Hi all, just a silly question here to check if i am entirely out of the wack on this.
Given interest rates have risen, interest income has become more substantial, i thought it would be a good idea to incorporate in a limited company and save money via the company account. the structure will be to set up a LTD with say minimal equity, I loan money to the company who will then put into company savings account to earn interest, and then distribute the interest at a more tax efficient way.
There may also be benefits that come with it, i.e. EV company car credit etc.
Is this entirely legit? or would there be a concern for the company's intention to incorporate? fully aware of the cost that may come with (accountants etc etc).
Given interest rates have risen, interest income has become more substantial, i thought it would be a good idea to incorporate in a limited company and save money via the company account. the structure will be to set up a LTD with say minimal equity, I loan money to the company who will then put into company savings account to earn interest, and then distribute the interest at a more tax efficient way.
There may also be benefits that come with it, i.e. EV company car credit etc.
Is this entirely legit? or would there be a concern for the company's intention to incorporate? fully aware of the cost that may come with (accountants etc etc).
0
Comments
-
If you form a limited company that just holds money, it probably won't be able to claim any sort of expenses or capital allowances, because it doesn't trade, and it is not really an investment company. It will pay corporation tax on the interest, and you will pay dividend tax when taking any money out beyond the repayment of the loan. I doubt it makes sense, but you should take proper advice if the amounts are substantial.1
-
flat_white_ said:the structure will be to set up a LTD with say minimal equity, I loan money to the company who will then put into company savings account to earn interest, and then distribute the interest at a more tax efficient way.1
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 349.8K Banking & Borrowing
- 252.6K Reduce Debt & Boost Income
- 453K Spending & Discounts
- 242.8K Work, Benefits & Business
- 619.6K Mortgages, Homes & Bills
- 176.4K Life & Family
- 255.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 15.1K Coronavirus Support Boards