Hi everyone, a little advice if possible please.
I have a LTD company and am thinking that it would be a smart idea to put aside the tax & VAT that I will owe at the end of my financial year. Rather than do this within a single business bank account, I'm wondering if it's possible to put it into a separate account and earn interest (however small) from. Would this second bank account have to be a business a bank account or could it be any type of personal bank account? Also, would this movement of funds require a paper trail in case HMRC come a knockin'?
Bigger picture, is this opening of a second account for a five figure turnover business worthwhile, both for admin and for the interest that could be earned i.e. is this the best way to make use of the money that has to be kept aside for tax and VAT?