My company (100% owned byme)earned about 20k in bank interest last year.
This was taxed at 25% by the Revenue -I know that we'd pay a higher rate for this than for "normal" profits at 12.5%.
So he 20k was really 15k .
but taking that money for greedy me means I had to pay full income tax on it -thus reducing it to about 8k.
The moral of this story is not to put company cash into bank interest earning accounts but rather managed funds which I used to do but got nervous this year.
And if you dont distribute it ie pay out the interest in the form of dividend within 18 months of the year end, then the company is liable to a surcharge on the undistributed interest of 20%.
Check out this post,but it's probably a bit late for it now.
To earn €20k in deposit interest, you must have a very large amount of cash in the company. You should pay for professional advice as winding-up the company may well be the best thing for you to do.
Unfortunately not my money -is part of clients cash flow and goes up and down according to holiday bookings. But in Summer can be alot alot.
the amazing thing is that the bank is giving me up to 4% (depending on amount and lentth I keep it in)
-and the same bank is only charging me 2% on my tracker mortgage !
No wonder they want customers to change from trackers..