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I have only just discovered this community and I am very impressed by all of the helpful information on here. :-)
I am just trying to get into the property market and have concluded that a company structure is the best option for my long term strategy. I am wondering whether people would recommend getting an accountant to set up their limited company or whether using a website such as "yourcompanyformations" this would be fine? (Sorry, I can't post link until I am off probation)
I would like to make sure everything is set up properly to start with and it would be good to know what my obligations will be going forward. I am happy to put together my own accounts using Xero or quickbooks but I am sure it would be helpful to have an accountant keep me on track over the first year with company/tax obligations. Any recommendations that aren't too expensive? It's hard to justify spending £1,500 a year when for your first year you may only make £2,000. I am located in London but don't need to have a face to face advisor.
Thanks in advance for your help!
I am not sure what the nature of your business will be but £1500 sounds far too much.
My accountants charged me £200 + vat for a company formation and you could probably get it done even cheaper.
For preparing financial year end on a simple property company is also a similar figure. So you are probably looking at £500 all in, if you do the basic book-keeping.
However, I would strongly suggest that you use the money you have 'saved' in speaking to a Accountancy firm that are Property specialists and explain exactly what you you are trying to achieve / what your personal finances are, so they can guide you best as to how to set the Company up.
Thanks Matt! The price I saw online was an all-inclusive rate for accounts/tax/VAT but would have been suited to a larger more established company/business. I definitely knew that was too high for me. I want to buy 4-5 buy-to-let properties over the next 4 years (depending on price) and then continue to buy more and more after that.
The hard part is finding a good property accountant without knowing anyone who can provide first hand recommendations. Google doesn't really help narrow it down....
Hi Mark,This thread provides a lot of useful resources:Resources for reducing landlord tax liability
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
I am also getting on the ladder, I have decided to buy individually over a company as it wouldn't even be worth my while if I brought as a company. Definitely advantages to buying to a company but the rates are like 2% higher that's a lot when it comes to London pricing.
> rates are like 2% higher
Where have you seen like for like rates that are 2% higher???
I set up my company in June last year and had the exact same feelings as you.
I ended up following a guide online and set up the company myself, it took about 20 minutes and cost £12.
In terms of accountants I too thought they were too much especially for just starting out so I went for TAP (The Accountancy Group). I pay £50 per month and this covers everything including yearly self assessments. Maybe they'll even incorporate for you?