Property & limited company

[Touronaut]

Hi Guys

Hope you can help. Just trying to get my head round how to go about my business before I employ the services of an accountant. ( I am in the market for one by the way ). Accountants I have used in the past tend to detach themselves from giving business advice.

I'll try keep it simple. I own 5 rental properties fetching in a gross £23k per annum. I own two building plots and will be setting about a build this year. I have launched a ltd company and opened a bank account for the new build and intend going Vat reg. My intention is to develop the company and build a small property empire by reinvesting the build profit of both building plots. I have also thought of leasing my personal property rentals to the company which could help to build my property empire. Any advice on how to structure this would be massively appreciated.

Thanks
Touronaut

 

[john1989]

This is a very broad subject and you should be taking professional advice. The fact the you have ‘launched’ a limited company without taking advice is worrying.

Residential letting is VAT exempt so if you are not making taxable supplies, you cannot register for VAT.

You could lease them to the company, but this would have to be done at market value. Alternatively, you could charge a management fee from the company to yourself for managing the properties. Again, this should be done at market rate. Whether either is beneficial to your situation is anyone’s guess.

 

[ethical PR]

Definitely one for your accountant. Any that I've worked with have always provided tax and financial advice alongside services.

Why not do a bit of desk research and ask for recommendations and shortlist two or three to talk to before choosing who to work with.

You probably also need legal advice.