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.
Hi Andy,If you are a lower rate tax payer, there is little point in going the ltd. company route imho.See this thread as it gives a good understanding/overview of the topic:The BIG tax issue: Should I incorporate?
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**
> Advice given to me
Who has given you this advice as it is full of holes!
> if you have a ltd company it’ll cost you 40% for the whole lot not just the bit you go over. 20% corporation tax the 20% for pulling it out
CT is 19% reducing to 17% next year. The other 20% will be dependent on how you take your money out, how much you want to take out, and what other income you have.
> If you take the money you are drawing it you must pay tax on it
Kinda true. But once again depends on the same 3 things mentioned above
> people do it Because loads of people have no idea how tax works and maybe have investors or other parties involved
That's why you should speak to a qualified tax advisor and/or an accountant
> 20% corporation tax and 20% dividend would leave you better than 40% tax plus NI to be fair. But you'd pay 40% regardless
Already mentioned completely false. CT is 19% (reducing to 17%) dividend is either 7.5% or 32.5%. So in short , NO YOU WONT PAY 40%
> Others maybe got investors and other parties involved
What does this actually mean?
> By time add in company fees, more strict accounts. Potential for investigation prob shell out more money than just saving your NI
Company fees are not actually that high, and if spread out over the portfolio will be am minor and TAX DEDUCTIBLE expense. More strict accounts? do you mean you need to act professionally as this is a good thing to aspire to! There is no more chance of being investigated in a Ltd Co as if you owned personally. I've been a landlord for over 20 years and I have had zero investigations into my company. I actually got investigated for my personal BTL for the 1st time this year!
Do you have any examples of this?
I'm currently getting 5 year fixed rate mortgages for 3.49% with a 1% product fee (75% LTV)
Best I can get in personal name is around 2.35%, so curious which lender is offering 1.75% as its a great deal and I might use them
Chartered Accountant, Tax Advisor and Mortgage broker
(and BTL portfolio owner)
What has VAT got to do with Incorporation ?