Advice on Business Account money

W

WGT

Registered User
Messages
195
Hi,
I'm an IT contractor with a limited company. I have about 10,000 euro in the company
which I plan to use as emergency money if and when I need it. However, it is earning
me little or no interest. If I withdraw it from the company, I'll have to pay tax on
it, which I want to avoid until I need the money (perhaps if I'm out of work in
the future, in which case the tax payable would be lower).
Any ideas, how I can make the most of this money in the company?
Thanks
 
Surely you can open an account in the company name wth Rabo or Northern Rock etc, and move it there? It stll remains in the company, and interest accrues for the company, so no issues.
R
 
You don't want it in the company at year end otherwise you are paying corpo tax on it.For a few months you would be as well put it into prizebonds
 
runner said:
Surely you can open an account in the company name wth Rabo or Northern Rock etc, and move it there? It stll remains in the company, and interest accrues for the company, so no issues.
R
Click to expand...
Aren't some accounts restricted to individuals only?
capall said:
You don't want it in the company at year end otherwise you are paying corpo tax on it.For a few months you would be as well put it into prizebonds
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Surely taking it out to buy PBs would trigger a tax liability?
 
Really! My limited company can buy prize bonds with incurring a tax liability. This sounds to good to be true.
 
That's what I was thinking. I'm just curious to know if (a) this is a legitimate form of tax avoidance for businesses (seems unlikely), (b) an illegitimate tax evasion scam and (c) if it would actually work as either in practice.
 
Whats so complicated

The company buys the prizebonds,transfer from cash to investments on the balance sheet
Any winnings are tax free

But you still have the tax liability when you extract the money from the company

Clubman what are you on about ,legtimate ,illigitimate tax evasion schemes !
 
capall said:
Whats so complicated

The company buys the prizebonds,transfer from cash to investments on the balance sheet
Any winnings are tax free

But you still have the tax liability when you extract the money from the company

Clubman what are you on about ,legtimate ,illigitimate tax evasion schemes !
Click to expand...

This is kind of interesting . is it possible to buy for example an antique and enjoy it at home while still being owned by the company and avoid tax legitimately?
 
runner said:
Surely you can open an account in the company name wth Rabo or Northern Rock etc, and move it there? It stll remains in the company, and interest accrues for the company, so no issues.
R
Click to expand...

RaboDirect only offers savings accounts to private individuals at the moment.
 
sign said:
This is kind of interesting . is it possible to buy for example an antique and enjoy it at home while still being owned by the company and avoid tax legitimately?
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You are not avoiding tax. If you bought an antique through a company in exactly the same way as buying prize bonds it is not a trading expense ,you will still be left with the same profit in the company which you have to pay corp tax on or to avoid this you have to get the money out through salary or dividend
It would only be a deductible expense if your business was an antique business in which case it would be trading stock
 
sign said:
This is kind of interesting . is it possible to buy for example an antique and enjoy it at home while still being owned by the company and avoid tax legitimately?
Click to expand...

Also I think you would struggle to convince the Revenue Commissioners that you have not in fact taken the money out of the company for your personal use, which would be subject to income tax.
 
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