Account placed into Trust

[marc02]

The duration and amount required does not qualify for an overdraft.

Any thoughts on the solution suggested above? Thanks.

[Incredulum]

My accountants solution is to place the funds into the personal account and move the same funds back into the business account within the same tax year. This being the case I am advised will mean that the funds are not treated as remuneration to myself - which of course they are not anyway, as I would only be holding the funds for the care of the company.

The question then arises, can I keep the gross interest earned? Or do I need to transfer the interest back to the company and declare it on the accounts? If I keep the interest myself do I need to pay income tax on it?

So a loan from company to director. And the director places the cash in his own bank account and earns interest himself.

So if you're not being caught by the s419 tax rules http://www.hmrc.gov.uk/manuals/dmbmanual/dmbm570050.htm then you need to think about the beneficial loan rules http://www.hmrc.gov.uk/manuals/eimanual/eim26100.htm

[marc02]

Ok. Thank you for this steer. Will look into it.

Thanks to All.