Investing Business Corp Tax?

Question

Hi,

I'm a (first-time) Director in a relatively new business. My first year end will be March 2005. Over the past few months I've been setting aside sums of money each month from my gross profits to pay the dreaded Corporation Tax. To date I've got around 20k. I understand that I'll most likely not have to pay this until 9 months and 1 day after my year end - so in reality very early in 2006.

The money is currently sitting in a 'sub-account' of my main business bank account eraning a paltry interest rate.

My question is, what am I actually allowed to do with this money as it's not my own? Can I open an online saving account for example and get a 5.5% return on it (Egg.com)? I'd like relatively quick access to it should I need to use it for any business emergency.

All advice gladly received

thanks

john boyle · Accepted Answer

In message , Bill D writes

Im not sure what you mean by it being 'not your own'. If you mean it belongs to the company then you can easily open an account with say Standard Life Bank in the company name. Not sure if Egg offer Corporate accounts.

John Boyle

Marcus Collie · Answer

Not enough info really to help.

Are you the only director? Do you own 100% of business or are their shareholders? Have you asked your accountant? Have you asked your bank? Have you asked your FA?

I would suggest taking professional advice!

MC

Doug Ramage · Answer

If you are asking whether you can use a "personal" account to achieve higher  interest rates than a company business account, then the short answer is No.

Ronald Raygun · Answer

That suggests there exists a longer answer which could be paraphrased as "Yes, but ...".

Bill D · Answer

Many thanks for all replies. After much investigation I've opened a 10 day notice Business Savings Account with Standard Life Bank Thanks again.

Doug Ramage · Answer

Or, as in this case, that the longer answer is also No, but I did not want  to go into unnecessary detail. :)

Investing Business Corp Tax?

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