Invoicing myself ....

[Chloe Brown Summers]

Can I set up a limited company to manage and maintain my buy to let property that is held in my personal name?

 

[Ian J]

Yes

 

[WaveJumper]

Might be worth you seeking some advice from an accountant too

 

[Chloe Brown Summers]

I own a HMO property with my wife, in personal names and we manage it ourselves. We don't have a managing agent.
I have been advised that I can't invoice myself for the time I spend dealing with the property management & repairs etc.
So thought I would set up a LTD Co to do this, but I have been told that since I would own the LTD Co I would not be able to invoice myself, though not sure how true that is?

 

[Ian J]

If you own the property yourselves you can offset all costs that you incur against the income but you obviously can't invoice yourself for time that you have spent as it would be a case of your left hand invoicing your right hand.

A limited company is a separate legal entity so although you can invoice costs including time costs to the limited company you would also have to declare those invoices on your personal tax return as it would be personal income

 

[WaveJumper]

Property Rental co, sole trader or ltd?

We have purchased 3 flats which we let out to tenants, currently the investment is just under the 200k mark and the rental stream 20k pa. Its basically our early retirement fund so split between my wife and I there should be no income tax due going forward, maybe a little when some other little...

www.ukbusinessforums.co.uk

 

[AndreasC]

You may feel like you are losing out not being 'paid' for managing the properties but that applies to all property landlords. It's part of being in that space.

Whoever advised you is correct as you can't invoice yourself personally from a LTD co you own for services that you don't provide you others or is a genuine business. Also, if you check out some other people's post they had a similar idea and then regretted it because of the cost, admin and hassle of running a Ltd Co

Speak to your accountant about this before doing anything