Corporation tax and vat saving options

[sunnygym]

I’m hoping some of the experts can help me. I currently have a limited company and after each invoice is paid I put aside 40% for vat and corporation tax.

At the moment it just sits in my business saving account not earning a lot on interest. There’s about £15k at the mo and I would like some advice of where I could put it to earn as much Interest as possible until it needs to be paid.

Thanks

Sunnygym

[98elise]

Do you have an offset mortgage?

I take a director's loan and stick it in my offset until it needs repaying.

[Eric Mc]

How do you handle the Benefit in Kind rules?

[shopper150]

Eric Mc said:

How do you handle the Benefit in Kind rules?

Get the company to invoice you 4% interest per annum and then just don’t pay it.

If you get caught, you’ve got an outstanding invoice on the system and perhaps pay it.

[trickywoo]

You’ll get pretty much nothing for instant access business deposits.

The best 1yr term I’ve seen recently was 1.7% so your £15k would give just over £200 after corp tax.

It’s a pretty sad state of affairs.

[JulianPH]

See below for best business account deposit rates:

https://www.investmentsense.co.uk/best-buy-savings...

Make a company pension contribution to reduce Corporation Tax.

Shout if you would like to know more about the latter.

[98elise]

Eric Mc said:

How do you handle the Benefit in Kind rules?

No idea, my accountant deals with my company and personal taxes. They have never mentioned BIK however I pay the interest to my company.