Thanks Toby ❤ Having done some research on this I have taken a very similar approach Toby 1) We have two director pensions which we fill up first to reduce corporation tax liability. This year we are both making use of the carry forward allowances to make the best use of this. These are investmented in 100% equities as we’re young and don’t mind the risk 2) The left over cash in the business is invested in a business GIA. Vanguard rather than invest engine as this is where our director pensions are held. Similar to you this is held in a fund 3) We have the holding company structure and will eventually branch into assets such as residential property but we prefer to own outright rather than be heavily over leveraged so this will be a small number over time. We will use the GIA to help fund this. 4) separately to this we both fill our S&S ISAs with T212 and have made use of the junior S&S isas and Junior SIPPs with HL I have personally found all the videos highly motivating and follow the journey closely
I'm guilty of leaving surplus cash idle in my business account too. Thanks for sharing your experience and tips on investing in high-interest savings accounts and the stock market, it's given me some food for thought!
I’ve been waiting for this video and it didn’t disappoint, thank you. Had one question, what would happen if you made more gains from your investments than from your usual company revenue?
Welcome! And hope it helps. Great question too - I'm not 100% sure, but I'm pretty sure you technically become an 'investing company' rather than a 'trading company' and the biggest effect is to do with business asset disposal relief. I believe if you are an investing company you can lose your BADR reliefs - I could be wrong here though. I don't believe that it changes anything else you'd still have to pay the same corporation tax etc. Source: clearvisionaccountancygroup.co.uk/trading-company-or-investment-company/
Good video Toby. I have a couple of rental properties in a limited company and use any surplus cash to repay the Director’s loan. I invest this into a MMF in my personal ISA. It will sit there until it’s time to remortgage, when I may pay down some of the mortgages with it.
Great video!!! Thanks for going through various options on how to invest business money. More options than fixed term business accounts which only offer up to 4% interest
Do you use Trading 212?, would be a good video to see your individual share picks and how you setup your portfolio for your investments in that platform. Great Channel👏
So can you invest business cash before you’ve paid corporation tax on it for that particular tax year ? How is corporation tax calculated retrospectively then ? Is it on the amount invested or the existing gains at time of payment ?
I'm not an accountant but from experience... Corp tax will be due on your profits at the end of your company's tax year. This is due to be paid 9 months after the end of the tax year.
Is there not some limitation on how much of your retained profits you can invest or make through an investments? My accountant indicated that your ltd company can be reclassified to an investment company if you breach the limit. Is that correct?
Correct. I don’t know the exact percentage at the top of my head but if your investments made more money than your trading business you can become an investment company. It has an effect on your business asset disposal relief - not sure about the other details 👍
I think I video comparing the pros and cons to investing business cash in money market fund compared to a business savings account? The rate of return seems to be the same at the current interest rates ?
Toby, so is your InvestEngine your business account or an account that you transfer money in FROM your business account? Many thanks. Love the channel. Hannah
@@hannahlaurab1787 it’s an account I transfer my business money from. The InvestEngine account is purely for investing and my business account is with Monzo 👍. I hope that makes sense
Good video Toby. Should the fact that losses can be offset against corp tax change our attitude to investment risk? A riskier investment might not do as well, but if there's that safety net there.....?
Potentially I guess - it all depends if you want to risk the money in your business. You could argue that if you have a 25% year in the stock market it's worth taking the risk. Also depends on timescales too. So long as you aren't investing money you need to pay for taxes and bills!
Very nice job covering the basics. I am sharing this not to brag but to show what’s possible. I’m retired and I have 2 separate portfolios. One is a long term growth dividend portfolio of stocks where i sell covered calls strategically and my 2nd portfolio is the Crypto trading strategy where its all about income. This year I am on pace to make $120K in realized options profits and around $869K in crypto profit... What is great is that my long-term portfolio is still up significantly as well. As such, it’s possible to generate excellent income but still have a total return perspective. ...Amidst this, the insights of a knowledgeable guide like that of Expert Evelyn Infurna can be crucial. Her expertise in navigating the nuances of trading has been the key for Me understanding and making the most of these emerging financial trends.
New survey has revealed rising adoption of cryptocurrency among the world billionaires, as they start experimenting in the digital currency, expanding their investments portfolio beyond traditional profitable assets.
How would you recommend i enter the crypto market? I am also looking at studying some traders and copying their strategy rather than investing myself and losing money emotionally. What's your take on this approach? and How can i reach her, if you don't mind me asking?
Well the name is 'Evelyn Infurna Services. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
XAI551K 200X IN 10 YEARS - so likely another 200x in 10 years=$20 MILLION/XAI551K!!! So getting 1/10 XAI551K $10k today might turn into $2M in 10 years - if one can hold through all the volatility.
Thanks Toby ❤ Having done some research on this I have taken a very similar approach Toby
1) We have two director pensions which we fill up first to reduce corporation tax liability. This year we are both making use of the carry forward allowances to make the best use of this. These are investmented in 100% equities as we’re young and don’t mind the risk
2) The left over cash in the business is invested in a business GIA. Vanguard rather than invest engine as this is where our director pensions are held. Similar to you this is held in a fund
3) We have the holding company structure and will eventually branch into assets such as residential property but we prefer to own outright rather than be heavily over leveraged so this will be a small number over time. We will use the GIA to help fund this.
4) separately to this we both fill our S&S ISAs with T212 and have made use of the junior S&S isas and Junior SIPPs with HL
I have personally found all the videos highly motivating and follow the journey closely
I'm guilty of leaving surplus cash idle in my business account too. Thanks for sharing your experience and tips on investing in high-interest savings accounts and the stock market, it's given me some food for thought!
I’ve been waiting for this video and it didn’t disappoint, thank you.
Had one question, what would happen if you made more gains from your investments than from your usual company revenue?
Welcome! And hope it helps.
Great question too - I'm not 100% sure, but I'm pretty sure you technically become an 'investing company' rather than a 'trading company' and the biggest effect is to do with business asset disposal relief. I believe if you are an investing company you can lose your BADR reliefs - I could be wrong here though. I don't believe that it changes anything else you'd still have to pay the same corporation tax etc.
Source: clearvisionaccountancygroup.co.uk/trading-company-or-investment-company/
Thanks Toby, been waiting for this one 👍🏻
@@theporkchopexpres welcome!
Very interesting video such a lot of info Toby
Thanks for this video, very informative. My business money is sat there earning 0% ATM . So will definitely looking into this 😊
Glad it was helpful!
Good video Toby. I have a couple of rental properties in a limited company and use any surplus cash to repay the Director’s loan. I invest this into a MMF in my personal ISA. It will sit there until it’s time to remortgage, when I may pay down some of the mortgages with it.
Great video!!!
Thanks for going through various options on how to invest business money.
More options than fixed term business accounts which only offer up to 4% interest
Glad it was helpful! Thanks as always for the support :)
Really helpful 👌
Do you use Trading 212?, would be a good video to see your individual share picks and how you setup your portfolio for your investments in that platform. Great Channel👏
I do use Trading 212 and I'll be doing a lot of content on it in 2025 :)
A good gay called (Damian talks money) has done some of the videos.
@benblunt5541 He's not gay
Thank you for covering this
Welcome! Might do some more business ones if there’s interest next year as well.
Hey fantastic video, would love more detail on the investing side to business cash
@@nicholashine7992 thanks maybe more to come in 2025 on this topic 👍👍
So can you invest business cash before you’ve paid corporation tax on it for that particular tax year ?
How is corporation tax calculated retrospectively then ? Is it on the amount invested or the existing gains at time of payment ?
I'm not an accountant but from experience... Corp tax will be due on your profits at the end of your company's tax year. This is due to be paid 9 months after the end of the tax year.
Is there not some limitation on how much of your retained profits you can invest or make through an investments? My accountant indicated that your ltd company can be reclassified to an investment company if you breach the limit. Is that correct?
Correct. I don’t know the exact percentage at the top of my head but if your investments made more money than your trading business you can become an investment company. It has an effect on your business asset disposal relief - not sure about the other details 👍
I think I video comparing the pros and cons to investing business cash in money market fund compared to a business savings account? The rate of return seems to be the same at the current interest rates ?
It’s 4% versus 4.7% at the moment when you compare saving against money market. If you exclude those welcome offers and promo rates 👍
Toby, so is your InvestEngine your business account or an account that you transfer money in FROM your business account? Many thanks. Love the channel. Hannah
@@hannahlaurab1787 it’s an account I transfer my business money from. The InvestEngine account is purely for investing and my business account is with Monzo 👍. I hope that makes sense
Can a holding company invest it's cash in the stock market and would tax only be paid when the company decides to pay out dividends?
Hi Toby tehe! 🎉
Tehe Michael!
Good video Toby. Should the fact that losses can be offset against corp tax change our attitude to investment risk? A riskier investment might not do as well, but if there's that safety net there.....?
Potentially I guess - it all depends if you want to risk the money in your business. You could argue that if you have a 25% year in the stock market it's worth taking the risk. Also depends on timescales too. So long as you aren't investing money you need to pay for taxes and bills!
@@TobyNewbatt Though the offset isn't saving all losses, just your corp tax rate of them.
Very nice job covering the basics. I am sharing this not to brag but to show what’s possible. I’m retired and I have 2 separate portfolios. One is a long term growth dividend portfolio of stocks where i sell covered calls strategically and my 2nd portfolio is the Crypto trading strategy where its all about income. This year I am on pace to make $120K in realized options profits and around $869K in crypto profit... What is great is that my long-term portfolio is still up significantly as well. As such, it’s possible to generate excellent income but still have a total return perspective. ...Amidst this, the insights of a knowledgeable guide like that of Expert Evelyn Infurna can be crucial. Her expertise in navigating the nuances of trading has been the key for Me understanding and making the most of these emerging financial trends.
New survey has revealed rising adoption of cryptocurrency among the world billionaires, as they start experimenting in the digital currency, expanding their investments portfolio beyond traditional profitable assets.
I heard her strategies are really good, How do I reach your Coach/mentor.
How would you recommend i enter the crypto market? I am also looking at studying some traders and copying their strategy rather than investing myself and losing money emotionally. What's your take on this approach? and How can i reach her, if you don't mind me asking?
Well the name is 'Evelyn Infurna Services. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
CAN”T SHARE MUCH HERE SHE’S MOSTLY ON TELEGRAMS WITH HER NAME.
💯
This needs to be talked about more. Crypto and crypto related stocks are also options.
What is price prediction of XAI551K
XAI551K will be a leader this bull run
Is it too late to buy XAI551K at $0.90?
Ronaldo would buy XAI551K
XAI551K 200X IN 10 YEARS - so likely another 200x in 10 years=$20 MILLION/XAI551K!!! So getting 1/10 XAI551K $10k today might turn into $2M in 10 years - if one can hold through all the volatility.
XAI551K all the wayyyy. For all of you that said its a ghost chain. You are wrong haha.
Just recently joining in on the fun with the XAI551K gang. Been liking the content, good job ☕️
Good morning XAI551K Community!! Let’s get ready for a December to remember! AEOD all eyes on XAI551K