How do you manage your Ltd Co Surplus cash?

[CrazyIndianZA]

Hi

I was wondering how do people manager their Limited Co Surplus Cash? With interest rates at historic lows, leaving it sitting in the bank is pretty much throwing it away. Seems the only options I can think are:

a) Buy money market OEICs
b) Buy high yielding stocks
c) High yield property?

Anything else? Is there any tax downside that I am forgetting?


Thanks

[kingcook]

I really need to look into getting a high interest business deposit account, but like you say, the interest rates are that low it's not worth the bother right now.

There have been talks on here (do a search) of your ltd co looking like an investment company if you start buying stocks. I'm not sure TBH though, i'd prefer not to gamble on the stock market at this time (at least with company money).

[eek]

Hi

I was wondering how do people manager their Limited Co Surplus Cash? With interest rates at historic lows, leaving it sitting in the bank is pretty much throwing it away. Seems the only options I can think are:

a) Buy money market OEICs
b) Buy high yielding stocks
c) High yield property?

Anything else? Is there any tax downside that I am forgetting?


Thanks

There are serious tax implications for c so don't do that.
b has a risk against it and if you have a lot of spare cash you could end up as an investment company rather than a consultancy.

a also looks like hard work so I go for d) get it into personal accounts or the pension pot as quickly as sensibly possible.

[ratewhore]

Mine sits in the business account. It is my warchest. I may need quick access to it.

[eek]

Mine sits in the business account. It is my warchest. I may need quick access to it.

It would if it wasn't for the interest rate equivalent I get from offsetting the mortgage.

[northernladuk]

Mine sits in the business account. It is my warchest. I may need quick access to it.

This and Eek's option D) for me but it is really frustrating. No one yet has come up with a plan that allows a decent investment that is worthwhile doing. I think we have had the whole nine yards inc buying wine and collectables but nothing seems worth doing.

ThePuma mentioned ages ago about holding in trust or something (I think that was it) but still couldn't make it work. The fact you get taxed on the profits and still leaves the problem you can't get it out of the company efficiently is just too much for most schemes.

Now if the Govm't came up with a scheme forcing banks to allow us to release the company money to prop up the debt with some better returns and support from HMRC would be interesting... but anyway, back to reality.

[psychocandy]

Buy gold?

Not sure of the implications if you make tons of money doing this though?

[DaveB]

It would if it wasn't for the interest rate equivalent I get from offsetting the mortgage.

WES. +1

Guarenteed return, no tax implications, very low risk (unless your bank goes bust) and money there when you need it.

This is assuming you still have a mortgage of course.

[ChimpMaster]

WES. +1

Guarenteed return, no tax implications, very low risk (unless your bank goes bust) and money there when you need it.

This is assuming you still have a mortgage of course.

What you talking about Willis?

You would need to do one of those Trust deed things and hold the money in your personal account to offset against a mortgage. And I'm not convinced that this has been proven to work?

No bank will allow you to offset a personal mortgage against a company bank account, unless you're a sole trader.

[DaveB]

Mine sits in the business account. It is my warchest. I may need quick access to it.

It would if it wasn't for the interest rate equivalent I get from offsetting the mortgage.

WES. +1

Guarenteed return, no tax implications, very low risk (unless your bank goes bust) and money there when you need it.

This is assuming you still have a mortgage of course.

What you talking about Willis?

You would need to do one of those Trust deed things and hold the money in your personal account to offset against a mortgage. And I'm not convinced that this has been proven to work?

No bank will allow you to offset a personal mortgage against a company bank account, unless you're a sole trader.

I'm talking about taking out of the company and putting it in the offset mortgage, if you follow the thread properly.