Where to put surplus company funds to generate interest
Discussion
Fortunately my company runs with a pretty reasonable six figure cash surplus held mainly in a current account with Lloyds Bank & some times on short term deposits of 30 or 60 days. Both are failing to generate anything worth having on the interest front in the current low interest rate economy.
Wondered if any of the learned folk on here may have a recommendation for a properly secure but higher interest generating alternative at all please?
Wondered if any of the learned folk on here may have a recommendation for a properly secure but higher interest generating alternative at all please?
I don't think it necessarily meets your definition of "properly secure" but having first maxed out the £85k with a few banks (Aldermore, C&C etc) I ended up opening a company brokerage account with IG Index and buying corporate bonds through that - eg the Provident Financial 6% 2021 which trade around par. Opening a corporate account is a bit of a pain requiring getting an LEI etc but I figured it was worth it. The tricky part is being disciplined and not being tempted to use the IG account to punt the market more generally...
williaa68 said:
I don't think it necessarily meets your definition of "properly secure" but having first maxed out the £85k with a few banks (Aldermore, C&C etc) I ended up opening a company brokerage account with IG Index and buying corporate bonds through that - eg the Provident Financial 6% 2021 which trade around par. Opening a corporate account is a bit of a pain requiring getting an LEI etc but I figured it was worth it. The tricky part is being disciplined and not being tempted to use the IG account to punt the market more generally...
I used to have a Ltd business that was cash rich (down to seasonal nature of the industry) and our accountant warned me off using the funds within the business in any type of 'investment" type activity. Can't remember exactly why, but might be worth seeking some advice (if you haven't already).Inkyfingers said:
I used to have a Ltd business that was cash rich (down to seasonal nature of the industry) and our accountant warned me off using the funds within the business in any type of 'investment" type activity. Can't remember exactly why, but might be worth seeking some advice (if you haven't already).
Yes, if when you sell up or pass the assets on death then the non-trading assets, ie "investment" type activities will cause problems with HMRC. Interest bearing accounts aren't so problematic, we have cash with Aldermore and Cambridge&Counties.
Had the same "problem" for past few years. Don't really need the money in the business, but don't want to pay massive tax to take personally
This is useful:
https://www.foxymonkey.com/how-to-invest-your-comp...
It's also possible to open up a SPV property company and buy some investment properties using funds from your trading company if you are investing for the longer term
I've concluded that holding plenty of cash is no bad thing and happy to do so for the time being
This is useful:
https://www.foxymonkey.com/how-to-invest-your-comp...
It's also possible to open up a SPV property company and buy some investment properties using funds from your trading company if you are investing for the longer term
I've concluded that holding plenty of cash is no bad thing and happy to do so for the time being
Yes I'd concur its a nice safety blanket to have especially so in these uncertain times.
No intention of investing it in stocks / shares or buying anything property wise just wanted to have the money wipe its own arse so to speak rather than inflation reducing its value whilst its sat there relaxing!
No intention of investing it in stocks / shares or buying anything property wise just wanted to have the money wipe its own arse so to speak rather than inflation reducing its value whilst its sat there relaxing!
If you don't already own Premium Bonds, borrow from the Ltd Company and buy some.
It is very satisfying to receive a tax-free prize personally when the bond was paid for with untaxed income!
NB IIRC the loan to the company should be repaid within 9 months, so check with your accountant how best to time this.
It is very satisfying to receive a tax-free prize personally when the bond was paid for with untaxed income!
NB IIRC the loan to the company should be repaid within 9 months, so check with your accountant how best to time this.
sideways sid said:
If you don't already own Premium Bonds, borrow from the Ltd Company and buy some.
It is very satisfying to receive a tax-free prize personally when the bond was paid for with untaxed income!
NB IIRC the loan to the company should be repaid within 9 months, so check with your accountant how best to time this.
I'd be interested to know how HMRC would view this?It is very satisfying to receive a tax-free prize personally when the bond was paid for with untaxed income!
NB IIRC the loan to the company should be repaid within 9 months, so check with your accountant how best to time this.
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