Browse All Tribes or choose a Tribe below:
By signing up I agree to Property Tribes Terms and Conditions
Already a PT member? Log In
Sign Up With Facebook, Twitter, or Google
By signing up, I agree to Property Tribes Terms and Conditions
Already a PT member? Log In
Don't have an account? Sign Up
To reset your password just enter the email address you registered with and we'll send you a link to access a new password.
I manage all of my properties myself.
RITA have recommended that I set up a Management Company so that I can (legitimately) offset against my tax.
How easy, quickly and cheaply can this be done and whom do I use to do this?
Really depends on your rental income/profit and how much your accounting fees is. Maximum you could charge for management is between 10 to 15% of rental income. Not to mention about the extra paperwork.
Do the maths...
Just catching up on a few topics today & noticed your post.
This is an option I've previously considered. I also manage my own properties and had looked into an option of charging 15% to myself via a Ltd Company which would manage all aspects of the tenancy side of the personally held properties.
I had advice via RITA earlier this year with regard to general Sec 24 planning. I was advised that whilst this option was possible, so was the likelihood that HMRC could view it purely as an arrangement to avoid tax and having no legitimate business benefit. In the end I decided not to purse the option as it would have been a fairly short term arrangement until enough time had passed to deleverage and reduce in number my existing properties; when the benefits would then be outweighed by the costs and additional administration involved with a Ltd Management Company
I am concerned however that we received differing advice from the same accountancy firm ? If they themselves have a subjective view on this sort of arrangement, then it doesn't bode too well for it's legitimacy to be tested by a less benign organisation !!!
I have gone down this route the Company owns its own property and it manages my personal owned property and it manages all my repairs and charges a fee for doing so
The director of the Company is my wife
all my personal owned property is only in my name
My wife also manages a coupe of other BTL for her customers
Learn Change and Adapt ?????
All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.
Can I ask how much the limited company charges your personal properties for this service
15% and one half rent for a new tenancy
£12 to register a company.
I pay £750 per year for the end of year accounts.
I pay £13 pa to maintain the company registration and £200 pa for accounts (to the same company that handles my personnal accounts)/
Just finished the second year accounts off today and I am glad I bit the bullet Now
Its working well I have no complaints
Thanks for all replies.
RITA have confirmed that it would be legitimate if it was set up properly.
Do I need a solicitor to draw anything up or just set it up online myself via which I’m perfectly happy to do? Didn’t know if it’s as simple as this?