How to use the cash in your company tax efficiently - Redbox Financial

How to use the cash in your company tax efficiently

Don’t let taxes drain away your valuable cash reserves. So are you sitting on a part of cash in your limited company and not sure what to do with it? Many entrepreneurs holding onto their company’s cash reserves because withdrawing it as a dividend would, or even salary would result in a large income tax payment.

So they’re possibly struggling to work out how Jesus money in the best way and how to invest this money maybe in property or other assets. So one option they may not be aware of is to structure their companies so that they can transfer cash tax free as a dividend or inter-company loan to another company within their corporate group.

For example, this could be a special purpose vehicle to invest in. . So that would mean their property portfolio would just grow a lot faster cuz there’s no income tax leaks. So alternatively, they could use the money to just grow their existing business faster, maybe investing it in more marketing or inventory or something like that.

However, setting up a formal corporate group with h. Has to be done properly. So it’s recommended that you seek the advice of a good accountant before making any decisions regarding your cash distribution. There’s just, there’s so many different ways of doing it and some are much more tax efficient than others.

What do you think about using your company’s cash in this, in a tax efficient way like this?