What can I do with money in my business bank account?

[Submariner]

People,

I am a Limited Company Contractor.

Can anyone advise what options I have for investing the money that is in my business bank account?? It seems that I have cash constantly sitting in there earning no interest or doing anything.

Surely I can invest it on behalf of my Company into something?

Many thanks

[SimonMac]

People,

I am a Limited Company Contractor.

Can anyone advise what options I have for investing the money that is in my business bank account?? It seems that I have cash constantly sitting in there earning no interest or doing anything.

Surely I can invest it on behalf of my Company into something?

Many thanks

Firstly stop thinking of it as "I have" it's not your money, it's your companies and if you can grasp that I'd use the money to ****

[northernladuk]

This question gets asked every month or so and the general answer is there is nothing you can do with it that will bring great returns. A couple of options to get a few percent here and there but nothing really worthwhile else we would all be doing it.

Have a go at a search using this method..

http://forums.contractoruk.com/welco...uk-forums.html

[Submariner]

simon whats with the attitude? why be so abusive? I mean really?

[Submariner]

thanks Northern cheers appreciated

[northernladuk]

simon whats with the attitude? why be so abusive? I mean really?

Point out to him he meant company's not companies to get him back!!

[northernladuk]

Have a look at paying yourself a single dividend for the full amount for the year (if you have available profit) so you can invest it personally rather than paying yourself monthly for no reason. I still find it quite surprising how many contractors have large warchests and pay themselves a small amount monthly over the year.

[Submariner]

thanks Northern but I will pass

[Wanderer]

Surely I can invest it on behalf of my Company into something?

Yeah, you can invest it in any way you see fit - it's your company.

I know people who have a flexible mortgage and they take directors loans[ to pay off a chunk of the mortgage and then pay it back to the company at a later date.

Do a google for site:contractoruk.com directors loan and you will find lots of discussion of the ins and outs of it.

Get your accountant to review exactly what you are going to do first and don't do it if you are going to blow the money and not pay it back.

[northernladuk]

Yeah, you can invest it in any way you see fit - it's your company.

I know people who have a flexible mortgage and they take directors loans[ to pay off a chunk of the mortgage and then pay it back to the company at a later date.

Do a google for site:contractoruk.com directors loan and you will find lots of discussion of the ins and outs of it.

Get your accountant to review exactly what you are going to do first and don't do it if you are going to blow the money and not pay it back.

They must have some pretty good deals to make it worth paying the 4% interest and it be worth it though. And can only do once a year or so to avoid it looking like bed and breakfasting. Am sure even with the limited options there are better and safer things to do with it.