Buying Silver through my business

[kennyruss72]

Hi all,

up until now I have bought all my silver personally.

I am considering buying some through my business and just wonder if anyone else does this?

My business is not VAT registered

Pros and Cons?

Cheers

Kenny

[BackyardBullion]

@kennyruss72

The following is not financial advice - I would suggest speaking with an accountant to get the best idea of the pros and cons. 

If you are buying with your business account and your business is NOT VAT registered then you would be buying with VAT (or not if buying from Europe for the next 28 days!). 

The business would technically own the silver (assuming you are a Ltd company). If you are just a sole trader then it makes no difference as you are the business entity as well as the person so you own both. 

If the business is a Ltd company then the company owns the silver and it becomes a little more tricky to "withdraw" the silver to yourself. The company would have to account for it on their books if you did and you would have to justify what price you placed on it on the books - it has to be fair market rates rather than nominal amounts different. I.e. you cannot buy £5000 worth of silver with the company and sell it to yourself for £1 and make a £4999 loss to counter your corporation tax liability - that is a big no no. 

Otherwise if you are just a registered sole trader it makes no difference.