Business reserve account interest

[Paul77]

Hi,
does anyone know if its possible to move money you can't take as dividends
this tax year to high interest rate accounts (or bonds) - my business reserve account is currently paying 0.5%!?

[moorfield]

Hi,
does anyone know if its possible to move money you can't take as dividends
this tax year to high interest rate accounts (or bonds) - my business reserve account is currently paying 0.5%!?

You can take upto £5k as a directors loan as long as you put it back again at your year end - speak to your accountant.

[swamp]

Pay your corporation tax early and earn 4.5% with HMRC

[ctdctd]

I've just opened a Business Savings account at Standard Life - 3.91% until April and then 2.31% unless base rate falls again.

I don't think you can use a personal savings account.

HTH

[Gonzo]

Pay your corporation tax early and earn 4.5% with HMRC

4.5% is higher than the Bank of England base rate, and would surprise me if it was true.

I thought early payment of Corporation Tax got you interest at 1.75%, working from this table:

http://www.hmrc.gov.uk/rates/interest-ctsa.htm#paid

My accountant has always advised that paying corporation tax early was best but based on the differential between bank interest and HMRC interest and the certainty that you get with interest from the bank, I have always ignored that advice.

[thunderlizard]

Yes you can do either - but for a small business the options are limited and badly advertised. I was looking into this in the summer.
Here's my thread - I went for Cater Allen and they've been OK so far
http://forums.contractoruk.com/busin...d-options.html

[Paul77]

Standard Life Business Bonds (4.25% gross) look to be about the
best on offer. I don't think one can register for a bond at a building
society in the name of a company