As a business owner you will know the importance of ensuring that there is enough money on deposit to cover the day to day costs of the business. Often surpluses generated through successful trading and unspent or uninvested profits will be left on deposit. This ‘rainy day’ money is a source of comfort to the business.
Very often these funds will be held on Treasury Reserve (short, specified terms e.g. one week, one month deposits with a slightly higher interest rate) but sometimes may be on deposit or Capital Reserve and possibly even in a current account.
It is important to accurately calculate the actual day-to-day financial requirement of the company and the ‘rainy day’ fund required to cover any potential unexpected costs. This means that any surplus could then be invested in a tax efficient manner with a view to longer term financial security.
This will achieve one or both of the following:
- diversification from a pure deposit – subject, of course, to your attitude to risk, desire to seek such returns other than pure interest and other relevant factors*
- a reduction in taxation on your investment
We can help you to calculate the necessary day to day costs of the business. We will then help you to tax efficiently invest any surplus money according to your attitude to risk and the taxation of corporate investments.
For further information or to organise a no-obligation review please don't hesitate to contact us.
The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.
The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.
*Equities do not have the security of capital which is characteristic of a deposit with a bank or building society, as the value and income may fall as well as rise