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Where Taxpayers and Advisers Meet

Use of investment accounts for limited companies

jm128629
Posts:2
Joined:Fri Dec 30, 2016 5:24 pm
Use of investment accounts for limited companies

Postby jm128629 » Sun Jan 17, 2021 7:28 pm

Hello Everyone,

Is it acceptable to do the following:

To transfer money from a limited company bank account to buy NS&I Premium Bonds. The Premium Bond account is named with the name of the company director. However, the bond account is used solely and exclusively for the holding of company funds. Would HMRC recognise the use of a bond account in this manner as an ‘investment account’?

If this is not acceptable, is there any other acceptable method in order to invest company money rather than leave it in an account that doesn’t earn any interest?

Thank you in advance!
Jamie

bd6759
Posts:3588
Joined:Sat Feb 01, 2014 3:26 pm

Re: Use of investment accounts for limited companies

Postby bd6759 » Sun Jan 17, 2021 11:50 pm

Only an individual can buy premium bonds. Not a company.

Can you not invest the money in an account that does earn interest?

jm128629
Posts:2
Joined:Fri Dec 30, 2016 5:24 pm

Re: Use of investment accounts for limited companies

Postby jm128629 » Wed Jan 20, 2021 12:30 am

I appreciate that only individuals can buy the bonds, however as a bond holder, I've moved surplus funds from the business account over to the premium bonds account for safekeeping. This has now been raised as a possible issue by my accountant.

Any suggestions or workarounds?

Thanks!

bd6759
Posts:3588
Joined:Sat Feb 01, 2014 3:26 pm

Re: Use of investment accounts for limited companies

Postby bd6759 » Thu Jan 21, 2021 12:02 am

Your accountant is correct.

You cannot rewrite history, but you can put things on a correct footing. Your accountant seems to be on the ball. Listen to him/her.


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