£50k sat in business account

[Soir]

I have £50k set in a business account gaining a mighty 0.9% interest

Where would people put this? I’m rather adverse to risk but seems a waste sat there on such a low interest

(I don’t want to put into pension, and honestly have no clue about ISA’s or stock market). Ideally I want to take out around £10k per annum as dividends

Many thanks!

[bitchstewie]

You want a 20% dividend?

[SpeckledJim]

We all do

[Soir]

bhstewie said:

You want a 20% dividend?

Apologies, taking as PAYE (utilising the £12k allowance) won’t be taken as dividend

Just wanted recommendations where to put the £50k

[bitchstewie]

Well basic risk/reward suggest if you want your £50K guaranteed to be there if you need it you're looking at savings products.

I don't know what restrictions there are on how a business can save but there are loads of fixed rate accounts or cash ISAs out there.

You can get 4% from various savings accounts but there's no such thing as a free lunch.

If you want to go after a higher potential reward that involves taking on more risk so you're into investing and how much of your £50K you want to risk and what sort of timescales you're working to etc.

[Soir]

Thanks for the reply.

Personal savings acc at 4% would be ideal but I think I can only “borrow” the money from the business for 9months before having to take it as salary/divs?

Shame no business savings account with decent %

[deggles]

Business savings accounts are a thing, you can definitely do better than 0.9%, particularly of you go for a notice account or fixed term bond. Try:
https://www.moneysupermarket.com/business-finance/...
or
https://www.utbank.co.uk/deposits/business-account... - their 120day notice, 4.25% tracker looks a good deal.

Bear in mind interest is income for the business so Corporation Tax may be due.

[lizardbrain]

Could you invest it in growing the business or improving productivity?

If you can’t think of a way to spend it on the business, perhaps you don’t deserve to avoid personal tax on it.

[Soir]

deggles said:

Business savings accounts are a thing, you can definitely do better than 0.9%, particularly of you go for a notice account or fixed term bond. Try:
https://www.moneysupermarket.com/business-finance/...
or
https://www.utbank.co.uk/deposits/business-account... - their 120day notice, 4.25% tracker looks a good deal.

Bear in mind interest is income for the business so Corporation Tax may be due.

I’ll have a look at those. Thanks, that’s really helpful

-happy to pay corp tax on interest incurred

[Soir]

lizardbrain said:

Could you invest it in growing the business or improving productivity?

If you can’t think of a way to spend it on the business, perhaps you don’t deserve to avoid personal tax on it.

Not looking to invest in or the grow the business.

Just thought extra £1-2k in interest would be better than few hundred £

Not looking to avoid any personal tax?

[lizardbrain]

Soir said:

Not looking to invest in or the grow the business.

Just thought extra £1-2k in interest would be better than few hundred £

Not looking to avoid any personal tax?

Investec and Virgin both offer about 2%. That’s still -ve 8%!real interest rate however.

Are you interested in discussing why you can’t get a better return by reinvesting the money into the business? Marketing etc?

[MisterBigglesworth]

Aldermore offer 3 percent on a fixed 12 month business savings account , slightly less about 2.5 on a 6 month one.

[Soir]

MisterBigglesworth said:

Aldermore offer 3 percent on a fixed 12 month business savings account , slightly less about 2.5 on a 6 month one.

Thankyou!

[Soir]

lizardbrain said:

Investec and Virgin both offer about 2%. That’s still -ve 8%!real interest rate however.

Are you interested in discussing why you can’t get a better return by reinvesting the money into the business? Marketing etc?

I’m not looking to grow the business. Thanks anyway

[oldaudi]

HL invest have on a 9 month bond

Kent reliance 4.10
Arbuthnot 3.7
Icicl 3.6


https://www.hl.co.uk/investment-services/active-sa...