On 19 February 2021, the Financial Conduct Authority (FCA) immediately placed restrictions on Raedex Consortium Limited, the parent company of Buy2LetCars Limited. Raedex is not permitted to enter into any new vehicle lease agreements until such time as the FCA removes this restriction. As a result of these restrictions, Buy2LetCars Limited is not currently accepting any new investment. Raedex understands the importance of its regulatory obligations and will continue to be open and cooperative with the FCA in attempting to resolve these issues. We are currently discussing our accounts with the FCA and are confident that these discussions will result in a positive conclusion. These discussions do not affect any investments that are in place.
Growing your money is one of the most prominent benefits of investing, helping you to make your earnings work harder. But once you’ve got it, what happens next?
It can be tempting to see green and reward yourself, because you do work hard after all, why not? But, if you’re serious about seeing long-term growth, it’s worth looking past the short-term and concentrate your attention on keeping track towards your goal.
Reinvesting is a great way to do this, it keeps your money busy and works hard in the process.
Reinvesting is usually associated with dividends, however, reinvesting can be applied to any mean of investing. As the name suggests, reinvesting is the act of putting the profit from your previous investment(s) back into the same scheme.
The idea behind reinvesting is to help drive progress towards your long-term investment goals. Reinvesting your profits can push you closer to the finish line, as you each time you reinvest you will have more to invest and will see more profit in return.
Reinvesting is a beneficial way to keep your money busy, so you’re not tempted to break the piggy bank early, while growing your money exponentially. Using the ‘Rule of 72’ you can actually work out how quickly you can double your money through investing and reinvesting.
When investing there are many different routes to go down, but by far the simplest is reinvesting. The best part is you’ve done it once already, you know it works and will work again. So why even consider investing elsewhere?
After you’ve invested you may have lots of money just sat around twiddling its thumbs, waiting for you to make the next move. Of course, you could buy yourself a new car, go on holiday but that does nothing to benefit your long-term investment goals. You’re essentially back in the same situation you were before you invested, so the obvious solution is to reinvest.
Reinvesting is the simplest form of investment you could look at, perfect for beginner investors looking to grow their money again. What’s easier than investing in a company that you’ve already invested in? You’ve built a relationship, have seen the returns and are looking for more.
Making a profit from investing can feel overdue like after months of working hard at the gym it finally starts to pay off – there’s no better feeling. But, without careful discipline, all this hard work could be for nothing.
It can be oh so tempting to spend the money, go on a splurge, shopping, travelling etc. but if you’re serious about reaching your goals it may be better to avoid touching your earnings. On top of growing your money further, reinvesting also offers the added benefit of helping you stay on track.
All investments when paid out are subject to tax, the rate at which you are taxed however is dependent on the investment itself and your income. When investing you can be taxed in three ways: income tax, corporate gains tax (CGT) and dividend tax.
Income tax is dependent on your income wage as to what bracket you are taxed at. Under personal savings allowance rules, you can earn £1,000 in savings before paying income tax, while higher rate taxpayers can only earn £500 and additional rate payers don’t have any.
If you earn over this amount, you are subject to tax and should declare this. Depending on if you’re paying basic, higher or additional corresponds to you paying 20%, 40% or 45% on your income.
Dividends are calculated differently to income and have a threshold of £2,000. Again, if you surpass this threshold you need to declare this, with basic rate taxpayers paying 7.5% and then 32.5% and 38.1% respectively for higher and additional rate taxpayers.
While corporate gains tax you pay for the tax on the income you have received from selling units for profit, this is standard which for the 2020-21 tax year is £12,300.
However, did you know that there is a way around this? By reinvesting you’re not receiving any of the income and therefore don’t have to pay tax until you withdraw – meaning you can reinvest the total, not whatever’s left after you’ve been taxed.
If reinvesting is the right choice for you, how do you know when is the right time to do it? Essentially, there’s no time like the present – the best time to reinvest is straight away.
This is because if the money is paid into your bank first, you are subject to paying income tax, while if you reinvest your earnings straight away you can reinvest the full amount – no deductions.
As when you invested the first time around, it’s important to have savings to protect you in case of unforeseen circumstances out of your control. We would advise a minimum of 6-8 months of savings.
Again, this isn’t your first rodeo, if you’ve already invested have either already cleared your debt or got it to a manageable level throughout your initial investment period.
Depending on the size of your debt, it may be wise to use SOME of your earnings to start clearing your debt. You can withdraw a maximum of £1,000 in savings before being taxed, so it may be wise to withdraw £1K and reinvest the rest.
Before reinvesting you’re going to want to understand how much is feasible to invest, this may not always be the full amount.
Of course, for the sake of tax, it’s beneficial to reinvest either the full amount or the majority – but this isn’t always manageable, especially if the initial investment was used to clear a debt, or you have experienced unforeseen circumstances since.
Now, this is the easy bit, reinvesting is just as easy as investing the first time. Depending on your investment company or means this could be automatic or require a conversation when you’re nearing the end of the investment contract.
For example, while on a much smaller scale, NS&I Premium Bonds when set up give you the option between the earnings being paid directly into your bank account or automatically reinvested.
Of course, reinvesting savings is much different to reinvesting your dividends. So it’s important to understand how to reinvest your money wisely and the best way to do so.
Here at Buy2LetCars, we have created a trusted, reliable means of investing, and reinvesting – one that allows you to reap considerable benefits and high returns.
Investing and reinvesting with Buy2LetCars is a simple, effective way to make your money work harder. Simply invest a minimum of £7,000 over a period of three years in which time you’ll receive both monthly returns and a gross lump sum.
Our interest starts at 7% and works all the way up to 11% IRR. Meaning the more you invest, the more you’ll receive in return, perfect for reinvesting!
When you reinvest with Buy2LetCars, you know exactly what you’re getting. Working your money harder has never been easier, and safer! In fact, we’ve never had a single default in all our years of investing and reinvesting. That’s right we have a zero default rate.
Whether you’re a customer, or even a repeat customer, in the case of reinvesting, you are 100% informed throughout your entire contract. We make sure you know the ins and outs of the investment, before, during and after.
Our process is simple. The investments are used to purchase a fleet of vehicles which are leased out of a period of three years, the earnings from these payments are used to pay both your monthly payments and gross lump sum.
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We pride ourselves on providing a strong alternative to standard investments, giving you the ability to get a 10% return or more on your investment (no funny business). Compared to other investments such as savings accounts and ISAs that struggle to even beat the cost of inflation.
The interest rate provided at the start of your investment (or reinvestment) period stays true throughout, meaning you can earn upwards of 7% IRR.
Nevermind hassle-free, our investments (and reinvestments) are hands-off. Meaning you can generate strong returns on your investment while sitting back and putting your feet back.
There’s nothing needed on your part, we deal with all the nitty-gritty details so you can just watch the money be paid directly into your bank account each month – without fail.
Many of our investors have realised that B2LC is one of the best ways to reinvest for a high return. Reinvesting with Buy2LetCars means you can generate the money you need to pay for your child’s future, retire, or just have a well-deserved holiday – your choice!
Our investments, and subsequently, reinvestments, begin at £7,000 and work all the way up to £100,000 plus. Of course, you’re free to invest whatever amount works for you. Whether you’re investing £10K, £30K or even £50K we provide you with interest from 7-11% IRR.
Using our returns calculator, you can work out exactly how much your money can make.
Buy2LetCars are the perfect means to both invest, and when the time comes, reinvest with confidence. Why not see if our reinvested investment methods are right for you?
If you are interested in our investment opportunities, contact our team today on 0203 823 1032, or get in touch using our enquiries form. If you prefer a face to face chat, come and meet us at our walk-in centre, found at 1 Bell Parade, Glebe Way, West Wickham, BR4 0RH.
We offer a no-obligation online presentation delivered by one of our experienced Consultants at any time convenient to yourself. Just click the button below to book your appointment.