Investing in Fund through limited company

AAZ

What is the best platform to invest money from limited company into funds and shares. I have some money in my limited company which I want to invest for long term gain. I don't want to invest as pension. Grateful for any recommendation

dunstonh

What tax wrapper are you using?

Limited companies tend to use either offshore bond or unwrapped.   Offshore bond is usually best due to increased control on taxation but if its only a small amount, then it wouldn't make much difference.

I don't want to invest as pension.

Obviously, from an individual point of view, if the money was to end up being yours rather than the company, the pension tax wrapper trumps all other options.  However, if the money is needed by the company later, then the pension wrapper would not be any good.

wmb194

AAZ said:

What is the best platform to invest money from limited company into funds and shares. I have some money in my limited company which I want to invest for long term gain. I don't want to invest as pension. Grateful for any recommendation

I don't know about the best but AJ Bell offers dealing accounts to companies.

https://www.ajbell.co.uk/faq/it-possible-open-dealing-account-name-trust

AAZ

wmb194 said:

AAZ said:

What is the best platform to invest money from limited company into funds and shares. I have some money in my limited company which I want to invest for long term gain. I don't want to invest as pension. Grateful for any recommendation

I don't know about the best but AJ Bell offers dealing accounts to companies.

https://www.ajbell.co.uk/faq/it-possible-open-dealing-account-name-trust

Many thanks I will have a look, thanks

AAZ

dunstonh said:

What tax wrapper are you using?

Limited companies tend to use either offshore bond or unwrapped.   Offshore bond is usually best due to increased control on taxation but if its only a small amount, then it wouldn't make much difference.

I don't want to invest as pension.

Obviously, from an individual point of view, if the money was to end up being yours rather than the company, the pension tax wrapper trumps all other options.  However, if the money is needed by the company later, then the pension wrapper would not be any good.

I am not using any or don't know to use any it would have been just simply DIY investing in passive vanguard ETF 

dunstonh

AAZ said:

dunstonh said:

What tax wrapper are you using?

Limited companies tend to use either offshore bond or unwrapped.   Offshore bond is usually best due to increased control on taxation but if its only a small amount, then it wouldn't make much difference.

I don't want to invest as pension.

Obviously, from an individual point of view, if the money was to end up being yours rather than the company, the pension tax wrapper trumps all other options.  However, if the money is needed by the company later, then the pension wrapper would not be any good.

I am not using any or don't know to use any it would have been just simply DIY investing in passive vanguard ETF 

The investment doesn't matter both unwrapped and Offshore bond can invest in the same way (as can pensions).    Tax wrapper is the second part of the decision making method.

If the investment is large, then offshore bond is likely to be better than unwrapped.  Offshore bond allows you to control when the company is to pay taxation on the investments.   unwrapped does not.

AAZ

dunstonh said:

AAZ said:

dunstonh said:

What tax wrapper are you using?

Limited companies tend to use either offshore bond or unwrapped.   Offshore bond is usually best due to increased control on taxation but if its only a small amount, then it wouldn't make much difference.

I don't want to invest as pension.

Obviously, from an individual point of view, if the money was to end up being yours rather than the company, the pension tax wrapper trumps all other options.  However, if the money is needed by the company later, then the pension wrapper would not be any good.

I am not using any or don't know to use any it would have been just simply DIY investing in passive vanguard ETF 

The investment doesn't matter both unwrapped and Offshore bond can invest in the same way (as can pensions).    Tax wrapper is the second part of the decision making method.

If the investment is large, then offshore bond is likely to be better than unwrapped.  Offshore bond allows you to control when the company is to pay taxation on the investments.   unwrapped does not.

This is whole new concept to me , how best I can explore this option. I will be investing 2 to 3k per month over log period of time

NoviceInvestor1

Is there a reason you want to invest it within the ltd company rather than take it out the ltd company and then invest it? 

The latter means paying tax up front, but providing it goes into an ISA no further tax in future. 

CliveOfIndia

AAZ said:

This is whole new concept to me , how best I can explore this option. I will be investing 2 to 3k per month over log period of time

At the risk of sounding like a "cop-out" reply ... it may be worth asking your accountant for advice ?  If you don't currently have one, it may be worth considering.

I used to run a LTD company many years ago.  Started out going the DIY route for tax, eventually got an accountant, and was glad I did in the end.  Sure, it's an added expense, though usually not a huge amount, and they can be worth their weight in gold.  They know the rules and regulations, and can usually offer excellent advice on such matters - as well as making the dreaded Tax and VAT returns so much simpler

dunstonh

NoviceInvestor1 said:

Is there a reason you want to invest it within the ltd company rather than take it out the ltd company and then invest it? 

The latter means paying tax up front, but providing it goes into an ISA no further tax in future. 

Pension will beat ISA in that scenario.

Limited companies can treat pension contributions as a business expense which reduces the corporation tax bill and avoids income tax, dividend tax and NI.   
For the vast majority of shareholding directors, the pension wrapper is miles ahead of the alternatives.

This is whole new concept to me , how best I can explore this option. I will be investing 2 to 3k per month over log period of time

With that amount, you would do it unwrapped.    However, if this money is planned to be drawn later (i.e. 58+), then the pension wrapper would be best.  

AAZ

CliveOfIndia said:

AAZ said:

This is whole new concept to me , how best I can explore this option. I will be investing 2 to 3k per month over log period of time

At the risk of sounding like a "cop-out" reply ... it may be worth asking your accountant for advice ?  If you don't currently have one, it may be worth considering.

I used to run a LTD company many years ago.  Started out going the DIY route for tax, eventually got an accountant, and was glad I did in the end.  Sure, it's an added expense, though usually not a huge amount, and they can be worth their weight in gold.  They know the rules and regulations, and can usually offer excellent advice on such matters - as well as making the dreaded Tax and VAT returns so much simpler

I have accountant to do my business account but I don't think they will advice me on investment