View Full Version : Am I allowed to
Top Hat
3rd October 2005, 09:58
Temporarily transfer money from my Ltd company account, which is in surplus to my personal mortgage.
It seems very silly to earn about 1% on business deposit account
whilst be paying about 5% on the mortgage
BMS
3rd October 2005, 10:48
Noooooooooooooo
Top Hat
3rd October 2005, 10:51
Noooooooooooooo
Its a no then :D
What about if I pay interest, at base rate?
Darren@1stAccountancy.biz
3rd October 2005, 11:19
Temporarily transfer money from my Ltd company account, which is in surplus to my personal mortgage.
It seems very silly to earn about 1% on business deposit account
whilst be paying about 5% on the mortgage
Potentially yes, it is within the realms of tax law to have an overdrawn directors loan account up to £5k without attracting any benefits in kind.
I would however strongly recommend speaking to your accountant before doing anything drastic!
BMS
3rd October 2005, 15:13
What about the interest accrued on the loan amount.
Wouldn't this be a benefit in kind and therefore taxable?
Would it not to be better to find a better business deposit account, base rate is 4.5% at the moment so why do you only get 1% ?
Top Hat
3rd October 2005, 15:15
Would it not to be better to find a better business deposit account, base rate is 4.5% at the moment so why do you only get 1% ?
That seems like the best solution, thank you :D
BMS
3rd October 2005, 15:17
You're welcome