Blog
Check out our latest thoughts and insights on a variety of financial topics
Company Cash Deposit Accounts
Whilst UK Banks continue to profiteer from their Business and Corporate clients by offering a minuscule rate of interest for deposits and excessive rates for borrowing isn’t it time you sought independent advice from us on your cash deposit options.
It is a common mistake to think that a business can only have its banking facilities with one Bank. Your business can have as many accounts with as many different banks as you like. You need to decide what the cash in your business is to be used for before deciding on which type, or combination of types, is going to work best for your business.
Santander are currently offering up to 2% gross but this is subject to many terms and conditions that could make it not so attractive.
This is where our expertise comes into play and why you should be talking to us now so that you can make sure your business cash deposits are working for you.
Let The Taxman Help Pay For Your Life Cover
If you’re a company director and you have life assurance in place to protect your family, you could be paying more tax than you need to. Relevant life policies are a way of providing death in service benefits on an individual basis no matter how small your business is.
What are the benefits?
Although the company pays the premiums, they are not normally assessable to income tax on the employee as a benefit in kind. This can be a significant saving, particularly for a higher rate taxpayer.
Unlike a registered group scheme, the benefit will not form part of the employee’s annual or lifetime pension allowance.
These payments may be treated as an allowable expense for the employer in calculating their tax liability, as long as the local inspector of taxes is satisfied they qualify under the ‘wholly and exclusively’ rules.
In most cases the benefits are paid free of inheritance tax, provided the benefits are payable through a discretionary trust.
