Hi folks, We have a small business with a cash balance of min 70k in our current account, year round for the past few years. Our business is unlikely to need to dip too deeply into it for operational reasons even in a downturn. I've been looking at some Raisin 1yr deposit accounts, but would like to mix it with maybe something with greater potential to return like a fund. What would people recommend?
Options for surplus cash in business
- Thread starter Gringo1
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T McGibney
Registered User
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Consider distributing it to shareholders/directors?
Consult your accountant?
Brendan Burgess
Founder
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Check out a Key Post I did on the topic.
Agree with Tommy. Take it out if you don't need it. Talk to your accountant about how to do that most tax-efficiently.
If at some stage in the future, your company needs cash, the directors can lend the company cash.
Brendan
Key Post - Should I leave profits in the company and pay Corporation Tax?
The big mistake a lot of company owners make is the very simple statement "Corporation Tax is 12.5% while total taxes on income are 50%, so I will leave the profits in the company and pay less tax." The problem with this is that they will have to pay tax on the profits when they extract them...
www.askaboutmoney.com
Agree with Tommy. Take it out if you don't need it. Talk to your accountant about how to do that most tax-efficiently.
If at some stage in the future, your company needs cash, the directors can lend the company cash.
Brendan