How to make the most of my money

[Seahorse]

Im a money grabbing so and so.I scrimp and save and if I can avoid buying something I will.

Now, I have a business account where I dont intend taking anything out, only money going in(hopefully).
As far as I know I have to declare any profit/interest made from that account,fair enough.

My question is, can I take that profit/tax out when I want and put it into a an account like an ISA(tax free/great interest) so they money works better for me?

[Potter Doodle Doo]

My question is, can I take that profit/tax out when I want and put it into a an account like an ISA(tax free/great interest) so they money works better for me?

You would probably need to show this on your business accounts as 'drawings' i.e. money that you have paid to yourself if you are wanting to invest it. ISA are only for personal investors and not business as far as I'm aware. I'll check with accountant hubby for you when he gets home tonight and double check.

[Seahorse]

Ooh thanks!

[0103media]

Once self employeed all profits are taxable unless stated.. e.g. interest from bank a/c's

Things like ISA's are a tax free way of investing or if you feeling lucky premium bonds.. Those are the only 2 I know of but i'm sure there are a load more..

I have a normal saving a/c which I pay income tax on the interest every yr..
(its a small amount)

[Beadsage]

..................or send it me.............there's a dead cert in the 3.30 at kempton tomorrow! :D

[BeadsbyLili]

The taxman: he taketh everything..

...so I reckon it will be classed as drawings too (but I'm definately not an expert otherwise I'd be able to advise you how to avoid it - lol).

[mjbelkin]

You can get business savings bank accounts which will pay a higher rate of interest, but you will still have to pay tax on the interest.

Any money you take out of the business and put into a personal account will be classed as "drawings" in the accounts, just as any business money used to buy personal items is classed as drawings.

As an alternative, you could always invest the money in the business's name - buy shares etc. Then any dividends will be in the business's name, and any profit/loss when you sell the shares also go to the business. The shares you buy in another company are classed as a Fixed Asset (investment), but one which doesn't depreciate. But dealing in shares is risky business, as they can lose money.

[0103media]

One thing that clears up a lot of worry in this area is to remeber that if your self employed (not a ltd etc..) then your name e.g. mrs s.horse is the company thus all the money you make in your name is taxable.. The only income that isn't is "gifts" e.g. cash for xmas..

[mjbelkin]

One thing that clears up a lot of worry in this area is to remeber that if your self employed (not a ltd etc..) then your name e.g. mrs s.horse is the company thus all the money you make in your name is taxable.. The only income that isn't is "gifts" e.g. cash for xmas..

And the profit you make when you sell your home - that isn't taxable either under the principle residence rules. But if its your place in the country that you use for ocassional weekends, then that is taxable ;)