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What does everyone do with the cash in their ltd company? My acct advises leaving the cash in the company but HMRC seem arsey about investing directly rather th
by blueblueblue 11y ago
What does everyone do with the cash in their ltd company? My acct advises leaving the cash in the company but HMRC seem arsey about investing directly rather than moving it into an ISA which obviously then incurs an income tax hit.
- astannard 11y agoGenerally you would start a Business Account, Barclays are good. You then pay yourself from your company but at a much lower rate than your company gets paid say an annual salary of £10,000. This will cause money to build up in your company account which you pay to yourself as dividends which are more tax efficient to get your money out. This is why most contractor use an accountant to manage the payroll etc