Why it matters
Founders' income often varies from year to year. Investing surplus money through tax-efficient accounts in good years builds savings for later, and a regulated adviser can help you plan it.
Investments & tax-efficient saving for startups
Cash held in a bank account can lose value against inflation. This guide explains how founders can invest money they do not need, using tax-efficient accounts such as ISAs, and what to weigh up before investing.
Once you have a cash reserve, a regulated adviser can help you invest money you do not need, usually through ISAs, where up to £20,000 a year can grow free of tax, and pensions, in a spread of investments matched to your timescale and attitude to risk.
The basics
- Stocks & shares ISAs and the annual allowance
- Diversified portfolios matched to your goals and risk appetite
- Regular investing from surplus income
- Tax-efficient use of allowances (ISA, pension, capital gains)
- Reviews as your life and goals change
How to get regulated financial advice
- 1Understand the basics
This page explains what this area involves, so you know which questions to ask an adviser.
- 2Find an authorised adviser
Regulated advice can only come from an FCA-authorised firm. You can search the FCA register, or ask us for an introduction to Equity & General, the firm we have an introducer agreement with.
- 3Decide whether to go ahead
An introduction is free, and you do not have to take one. If you go on to take advice, the adviser explains any fees before any work starts.
Common questions
How much do I need to start investing?
Many investment accounts accept small regular amounts. The usual first step is a cash reserve, followed by tax-efficient accounts such as an ISA. A regulated adviser can advise on what suits your situation.
Are investments safe?
All investing carries risk. The value can fall as well as rise, and you may get back less than you put in. A regulated adviser can match investments to how much risk you are comfortable with.
What's the tax benefit of an ISA?
Growth and withdrawals from an ISA are tax-free, and you can invest up to £20,000 a year across ISAs. A regulated adviser can advise on using these and other allowances effectively.
General information only. This page explains a topic in general terms. It is not advice, a personal recommendation or a financial promotion, and it does not invite or encourage you to buy any product or service. Everyone's circumstances are different.
Regulated financial advice can only be given by a firm authorised by the Financial Conduct Authority. You can find one on the FCA register (register.fca.org.uk). Buzz Accounting is not authorised to give regulated financial advice. We have an introducer agreement with Equity & General (E&G), authorised and regulated by the FCA (No. 474163). If you would like an introduction, we can make one.
The value of investments and any income from them can fall as well as rise, and you may get back less than you invested. Your home may be repossessed if you do not keep up repayments on a mortgage. Tax treatment depends on your individual circumstances and may change. Will-writing, trusts and some estate-planning services are not regulated by the Financial Conduct Authority.
