Accumulated funds in Ltd company

Moneysavingdoc

I have been accumulating funds within my limited company accounts (~120K currently +20K/year).
Thankfully the currently available interest rates for business savings accounts are 4%+ even for instant access. As such the funds are distributed across a variety of accounts with different fixed terms.
The problem (admittedly not the worst problem to have) is that due to pension annual allowance tapering I cannot take an income exceeding 200K without potentially incurring punitive levels of taxation on theoretical pension growth. Therefore, I cannot take any more dividends, salary, or top up a SIPP, so the profits will continue to accumulate.
Ultimately, I will probably do this until such time as I choose to significantly reduce my main income and have headroom to take salary/dividends. Or there is a significant change to tax law that allows the same.
My question is, what would people advise as a counter to inflation over this time period? Especially as interest rates fall. Any other ways to put limited company funds to use? And what are the practicalities?

Hoenir

Hold index linked Gilts perhaps. 

Grumpy_chap

Moneysavingdoc said:

I have been accumulating funds within my limited company accounts (~120K currently +20K/year).
Thankfully the currently available interest rates for business savings accounts are 4%+ even for instant access. As such the funds are distributed across a variety of accounts with different fixed terms.
The problem (admittedly not the worst problem to have) is that due to pension annual allowance tapering I cannot take an income exceeding 200K without potentially incurring punitive levels of taxation on theoretical pension growth. Therefore, I cannot take any more dividends, salary, or top up a SIPP, so the profits will continue to accumulate.
Ultimately, I will probably do this until such time as I choose to significantly reduce my main income and have headroom to take salary/dividends. Or there is a significant change to tax law that allows the same.
My question is, what would people advise as a counter to inflation over this time period? Especially as interest rates fall. Any other ways to put limited company funds to use? And what are the practicalities?

One thing you can do that will allow you to draw an amount of additional "income" from the Ltd Co. without incurring a massively increased tax liability would be the outright purchase of a brand new EV which is then your company car.  The company can, AIUI, right down 100% in first year and personal income tax is low, currently 2% BIK.

Obviously, you may have no desire or need for a new car, in which case it would be spending money pointlessly.

Usual caution applies that tax rules can vary at any time.

Bookworm105

assuming you have "generic" articles of association there will be nothing stopping the company undertaking investment of surplus funds (provided it does not engage in investment/currency trading). Therefore, the company can do any of the usual investment vehicles: interest accounts, guilts, bonds, equities, property - obviously some of which carry more than just inflation risk.