Newbee Help - Setting up new company

[standard.issue]

I've done quite a lot of searching a reading on here and have not been able to find the anwser to this, probably because it is a bit obscure...

I'm looking to set up a limited company to hold a property investment that I have that generates c£55k pa.

As far as I can see the corp.tax will be at 20% and I will pay tax on any dividends if I choose to take any. There will be a directors loan of c£600k as the property goes into the company and i understand that the loan repayments will be tax free.

Some of the profits will be reinvested into purchasing more property and some will be used to support charities. The end goal being that the income grows so that more can be given away.

The company will not have any employees for the time being.

My questions...
1. If there is limited profit then will a low level or corp.tax be payable?
2. Is is ok not to have any employees?
3. Is there any way of keeping the company finances+directors ID private (without using nominees)?

Thank you in anticipation of your respones.

 

[Mitchells Bristol]

Hello there
In answer to your specific questions:

My questions...
1. If there is limited profit then will a low level or corp.tax be payable?

Corporation tax will be payable on any level of profit at 20% (until profits hit £300k). There is no longer a de-minimis level before which corporation tax becomes payable.

2. Is is ok not to have any employees?

Yes - that is fine.

3. Is there any way of keeping the company finances+directors ID private (without using nominees)?

Using a nominee would be the only way to keep the director ID private. Is there a reason you might not want to use nominees.

If going down the limited company route - your finances will be publicly available, and this is unavoidable. Although you can file abbreviated figures to keep the disclosure to a minimum.

Have you considered the capital gains tax issues of transferring the properties into the company?

Hope this is of some help

 

[elaine@cheapaccounting]

I would recommend seeking professional tax advice on this BEFORE you take this course of action.

I am sure that you have your reasons for doing this but I am not sure that you fully understand the short and long term tax implications of this strategy.

Good luck with it.
For a property at this value you really should pay a few pounds for advice specific to your needs.

 

[standard.issue]

Taxonomy - thank you for your comments and advice.

Elaine - also thank you, I intend to speak to my accountant before launching into anything as I am aware of the possible long term implications.

As I would like to keep my financial affairs our of the public realm I suspect that it will be best to keep everything in my personal name even though it will come at a price (less tax efficient). At the end of the day the tax man gets always gets his due share!

 

[MyAccountantOnline]

This information on the Companies House website may be of interest.

 

[standard.issue]

Thanks MyAccontsOnline. It was more my name as a director that I did not want to disclose.

A lot of people in my local business community know me which is why I wanted to hide the size of my holding/profits.

 

[MyAccountantOnline]

Thanks MyAccontsOnline. It was more my name as a director that I did not want to disclose.

A lot of people in my local business community know me which is why I wanted to hide the size of my holding/profits.

The company profits wont be disclosed for most small companies at Companies House if they take advantage of the small company filing exemptions but the accounts would show company assets and liabilities.

 

[Jeremiah@RHJ Accountants]

Thanks MyAccontsOnline. It was more my name as a director that I did not want to disclose.

A lot of people in my local business community know me which is why I wanted to hide the size of my holding/profits.

there are three different addresses for compaines house

1. Registered office - Publicly available
2. Service Address - Publicly available
3. Residential Address- Not available to the public.

So you could use you accountants address for the first two and you have to have you home address for number 3.

They still be able to see who is the director of the company by paying to view the annual return for example.

 

[BobBuilder]

Corporation tax will be payable on any level of profit at 20% (until profits hit £300k).

assuming that there are no associated companies which would reduce the £300k figure