My client has significant cash reserves in their company and wishes to invest this money in high interest savings accounts for easy access. The accounts would be in his personal name to have a better interest rate. Are there any tax implications for the company’s money being used like this?

With the latest increase in the Bank of England base rate to 5.25% from 3 August (and HMRC’s late payment and repayment increases from 22 August), it is understandable that your client wants to maximise the return on cash.

The initial concern is the withdrawal of funds would at best be considered a loan with benefit in kind and section 455 Corporation Tax Act 2010 (CTA) tax to consider, while the worse case scenario would be that the transfer is viewed by HMRC as either a dividend or employment income.