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Found 82 results

  1. Up to now I have successfully self managed my property affairs without the need for an accountant. I now come to submit my first CT600 for my property company (for its first full year). I have come across the following obstacles on the HMRC web site after I logged on for my Property Co.: Unable to submit rental income more than £5200 per annum Property expenses cannot exceed the rental income My rental income in the first year is more than £5200 (good) but I also had a lot of expenses so I made a loss in that first year Please can anyone help with how I submit my Corporation Tax return in this situation and other people's experience? All of the accountants I have asked have just said that I need to come to them and use 'software'. Surely having come this far I can get it over the line somehow in a cost effective manner without needing to pay for additional services that I do not need Other people's experiences who have not reached for an accountant to do it for them would be most welcome. Regards
  2. Hi Guys!! I'm starting my property journey and will be buying my first buy to let in the next 6 months. I'm planning to have 2 properties by the end of 2020, and aquire 10 properties over the next 5 years (roughly 2 per year). However I need to speak to a good accountant before setting anything in motion. I'm based in London but will be buying my first properties in Manchester. As the Property Tax service is currently full, could you please recommend some good quality property accountants or point me towards some resources? Any advice from this fantastic community would be greatly appreciated! For those of you going to the property meetup in November 7th in East London, see you there!! Clem
  3. My partner and I (both 30 years old) have some savings and are looking to start investing in property for the long term cash flow to eventually replace our income. We currently own no property and are tenants ourselves. We want to skip buying our own house and get straight into investing. Q1) would we still benefit from First Time Buyer stamp duty deductions if we were to; A) buy to let? B ) buy through a limited company? Q2) I’m assuming we would need a first time buyer, first time landlord mortgage - can we get this through a limited company? What you've done in property so far Nothing just yet. Just been building a foundation of knowledge and learning all I can through podcasts, reading, and a few meet ups. Q3) I have spoken to lots of people who have found value in paid for courses - are there any you’d recommend? What areas you invest in (or want to invest in? Currently living in Hertfordshire where property prices are out of our budget so looking further north. (Manchester, Leeds, Sheffield, Nottingham) My next steps in my education is to pinpoint one of these cities, learn it well (online research, visiting), and then target 1 city for investment. I know they say invest in an area you know, but we want to get started, and having property at least in 1 city further afield seems easier than having multiple properties over numerous cities. Thoughts? What your plans are for the future Looking at BTL to put my learning into practice for the first few and then moving on to HMO’s as I build confidence. We want to have a portfolio in 10 years which will allow us to retire from our jobs (currently 30 years old). Thanks for reading. If anyone has any advise or input on anything, it would be great to learn from your input. I look forward to reading your responses. Ben
  4. Hi all, Whilst not new to the BTL scene, this year I purchased my first property inside SPV / Ltd Company and as I approach the final quarter of the company accounting year, it is about time to find an accountant to take on the new area of end of year filing activities!! I would like to consider myself pretty savvy in general numbers and tax game having filed my personal SA returns for many years but the company accounts games is a whole new story that I am looking for help with. I would be happy to do my own double entry bookkeeping and provide my chosen accountant with access to my online books from which to do these annual tasks - or if they prefer to operate a different way, I am open to discussion. I have had a few sensible quotes (and a few silly ones) when researching "general" accountants at the start of this journey but before I take a decision in this fairly niche market, I wanted to post here looking for recommendations of accountants known to operate in SPV/Ltd Companies. I live in Hampshire but I am as happy working with a nationwide accountant as I am a local one. Any help would be much appreciated guys with this my first post within the property hub network. Feel free the message me or reply on this thread. Thanks in advance. Dean
  5. Hi Folks, I would welcome any feedback on my current situation. I am looking to purchase a holiday let property in the UK through a limited company. Looking at Limited company mortgages in general, they typically offer somewhere in the range of 75%-80% LTV. To fund the remaining 20-25% I could remortgage my property. I was thinking that I could lend the money to the limited company and the income generated would help pay for remortgaging. Is this the typical way for company mortgages to be set up? What are the downsides to this arrangement? Are their better arrangements for funding the remaining 20-25%?
  6. Hello All! Over 2019, my partner and I have been educating ourselves about property and all the ins-and-outs of BTL. We have managed to save £30k, and now we need to take the leap of faith and actually start DOING some investment!! I'm the kind of person who has to have a clear plan of action, and I'm really struggling to nail down the process to purchasing our first BTL. After many discussions and considerations, we have decided that buying property as an SPV Ltd company will be the best option for us (both in terms of tax implications, and long-term goals). We would be so grateful if anyone could offer any advice on what order to complete the following steps in: - Set up a Ltd company (Side note - how have people found is the best way to do this?) - Get a mortgage-in-principle (Is this possible for Ltd companies before finding a property?) - Put an offer in on a suitable property - Set up a separate bank account for the Ltd company (Can this be a standard bank account?) - Any other step in the process to purchasing your first BTL as a Ltd company that we have overlooked! Any advice would be very much appreciated! Thank you in anticipation, Hayley and Steve
  7. Hey guys! New to the forum, would be really greatful is someone could help me out as tax is a confusing issue even to the experienced landlords in here you can imagine how difficult it is to a newbie. My question is in regards to owning property in a ltd aswell as in my personal name. I currently earn a salary of 35k and have just purchased my first buy to let which will push me up to around 41k on paper, I’ve worked out I could buy another in my own name before reaching 40% tax threshold. my plan is to start a ltd company after this and buy any further properties through the company but keep the original 2 in my own name as they won’t be liable for 40% tax. Is this viable or are there any key points in missing? any help is massively appreciated. thank you sean
  8. Buy to let Ltd company. I'd be really gratedul if any one could offer some advice as I've tried countless local accountants and cannot seem to find one to give me the exact answers I need. I'm at the beginnings of setting up a ltd (spv) company to hold my current main residence, which isn't mortgaged and wholly owned valued at around £150k. Once it's tenanted I want to release some equity/mortgage from the property and start purchasing buy to let's. I'm a higher rate tax payer and also buying a new property with my partner. I've worked out it would make more sense to use the ltd company for tax efficiency purposes. I.e. no additional stamp duty on the new purchase with my partner that would be our first time buy. And also savings on paying at 40% tax with regards to rental income. My question is if my new company were to buy the property off me (which I would sell as a director's loan) would it be subject to any stamp duty,? (Or Land transaction tax, as the property is in Wales). If I do have to pay then it doesn't make much sense to transfer it in terms of additional stamp duty savings associated with me buying the new property with my partner as an 'additonal' rather than 'first buy' My other question is whether someone can recommend a good national accountants or solicitors which specialise in this type of area that I can use? As I'd rather pay a fee and use someone to set it up for me than do the accounts myself . Apologies for any confusion or misunderstandings I may have as I'm rather green to this at present. Thanks in advance, Kind regards, Darren.
  9. Hello all, Following an article in the Business and Money section of this weekend's Sunday times *, and from listening to recent Rob's podcasts with Dave Cookson and the new Property Hub Mortgages venture, (all of which very helpful, I'd recommend), I have a question on why it seems to be accepted practice that BTL mortgage rates are commensurately higher if the applicant is made from Limited Company standpoint, as opposed to one acting as an individual. Clearly with the tax incentives that are tapering in, there are merits to using the vehicle of a limited company in the context of a property portfolio, but my question to the community and the number of mortgage professionals out there who are in it, is why that status quo exists? Is it merely that the market has yet to offer the more competitive rates out to the former investor type? I understand that the application itself may be more complicated, and historically there was always less choice for the Ltd company, (although I understand that this is changing), could it be that the better rates are being offered to the individual investor simply because there have, until recently, been more of them? And in any case, in the example of the Ltd Comp the director(s) are still being held personally liable for the company's debt, and are checked in the same manner as any individual might be. An example given in the paper was a comparison of two 75% LTV loans, both with the same arrangement fee and both on a fixed rate for two years. The "mainstream" applicant would be offered a rate of 1.81% but the Ltd Company equivalent (the paper said), was 2.99%. To my mind this is an example of a lender capitalising on the perceived incentive of using one over another, and then charging more , "because they can"? Really appreciate hearing from any of those hubbers "in the know" Good evening and thanks in advance James * and mindful of all I read in the press and sensationalist headlines, this one seemed to be quite niche, buried as it was down the order in the final few pages of probably not the most popular section of the paper.
  10. My wife and I have a property which is let out and currently has no mortgage. Our intention was to take out a Buy-to-Let mortgage on the property and then use the funds to purchase more properties through a new Limited company (the original property would not be in the limited company). We have been talking to a local IFA/Mortgage broker who has done some research for us & they are now saying: "So in summary they’ve made investment property companies much tougher to finance. Lenders (we’ve checked a dozen) will not allow you to remortgage a property as a buy to let and place these proceeds into a limited company in order to purchase further property, they will however let you remortgage to buy property as a buy to let investor (not via a limited company). This wasn’t the case up until a number of months ago, but it appears they have tightened their criteria to stop this from happening, because we are regulated mortgage advisers we would be committing mortgage fraud if we didn’t tell the lender the remortgage monies were being used to purchase property via a limited company, you could do it yourself but you would also be committing mortgage fraud…" Does anyone else have experience of this? Is it correct? Dave
  11. Quick question if anyone out there happens to know the answer that would be great. If I create a limited company with the sole purpose to use it to trade in btl property (an SPV) I would be able to take £5K per year in dividends tax free from company profits - would I also be able to draw a directors salary from the company (PAYE) - or because it was a SPV would this prohibit me from doing so. Might seem a stupid question but can't find the answer anywhere. Thanks in advance Mike
  12. Hi Ive been told by a financial adviser that you can avoid paying stamp duty on property that you transfer into a limited company by claiming it to be a going concern. Has anyone had any experience with this as so far all i read is that you must pay stamp duty.
  13. Hi Hubbers, I am looking for a buy to let mortgage as an expat buying through a limited company and do not currently have any other properties to my name. I've checked out some other threads on this forum and extracted some brokers to contact including: AS Financial, Liquid Financial Services; Charcol.co.uk; Vida homeloans. I would really appreciate any tips / advice if anyone has any recommendations from their own experience in a similar position (as an expat buying through limited company). I have spoken with Liquid expat who have come up with an option at 4.3% fixed but would ideally like to get a few more options on the table for comparison before moving forward. Few extra details about me: I am an expat in Qatar looking to buy in the Liverpool / Manchester areas. Hope to hear from you.
  14. Hi all My name is Luke, and I am a new member to this website. Having looked through the great advice available I thought that it would be a good idea to sign up. I hope that everybody is well! To start off I have a questions below, and I would welcome advice. I am looking to purchase property to renovate and sell. I have been researching the various different business structures that I could use to purchase property through. It seems apparent to me that a Ltd company (‘LC’) is going to be the best business structure; the 17% CT rate, for the Financial Year beginning 1 April 2020 which is around the time I am looking to start, is extremely attractive. Moreover, I would be able to build capital without having to pay additional rates of tax, for my personal liability. My only bone-of-contention is that I still hold my first time buyer status. I understand that if I was to purchase a property personally, even for the purposes of redevelopment and subsequent sale, I would lose this status. But, would the above still be the case for purchasing through a LC? I understand that a LC is a separate legal entity, and, I suppose, this is where my confusion has arisen from. I look forward to hearing from everybody.
  15. Hi good afternoon everyone, Name is Paul and I've been in property since 2011. I started by renting out and managing my property myself, becoming NLA accredited and have moved to a more passive strategy using a managing agent. I've enjoyed all aspects and have now built up 4 properties. I still manage one of them but as I live 300miles away the remainder are fully managed by a local letting agent. We are a married couple and my wife is no longer a 40% tax payer for the foreseeable future (actually her earnings will be less then 3k) but I will remain a higher rate tax payer. We currently owm our properties with the following ownership structure: 2 in higher rate tax payers name. 1 lower tax rate payers name. 1 in joint names with the intention of getting a declaration of trust and form 17 for more favourable rental income benefits. We are also looking to purchase two further properties in the next 6 month's. My intention is currently to use a DoT for the 2 properties currently held in legal ownership in my name and for the one in joint names to bring the beneficial ownership to 1:99% in favour of lower tax payer. Can anyone confirm that a deed of trust is valid for transferring beneficial ownership in these ownership circumstances? There's a lot of conflicting information online but this seems to be the best solution for us until we can incorporate using the rules of property partnership to minimise SDLT and CGT. Thanks,
  16. Hi Hubbers, This is my first post on the PropertyHub, so please be gentle! I need some help/advise on loan from company to company whereby the shareholder of both companies are the same. The Dilemma I am currently the only shareholder of a limited company for quantity surveying whereby I provide commercial services on a freelance basis. I have been doing this for couple of years now and have managed to save a substantial amount in my business account. As the money is just sitting in my business account, I want to utilise it, and am now looking to set up a Buy to Let limited company to build a portfolio for retirement and to pass on to my children. The Million Dollar Question(s) So my question(s) is: Is it possible to loan the money from my QS business to the new BTL business? What are the tax implications for myself if I am the sole shareholder for both companies? Is it better to have additional shareholder or partner to be the sole shareholder for new company? I look forward to hearing from my fellow hubbers on any advise they can share with me, as my accountant is giving me a vague answer, which is leaning towards me not being able to do this in a tax efficient way! Thanks for reading the post if you have reached the end! Much appreciated.
  17. Hi everyone, I am buying a property using a limited company. The limited company is set up but I need to open a bank account (this is a lender requirement). I am an expat and am the sole director of the company. Any advice on decent business accounts - low fees, online banking and most importantly available for an expat! As always, any advice gratefully received. Cheers, JJ
  18. Hi everyone, first time on here. Been struggling so thought I would go to the forum. I work in the US, self employed, and want to get in to the property market back home as my accomodation over here is covered by the company I work for. I earn a great wage, +£100k, have £25k saved but because of all of the above, I am struggling to find a lender. I originally wanted to buy a 100k flat in Leicester but this falls below minimum lending for alot of lenders?! Can anyone recommend a broker to help? If I were to become a ltd company would this affect this in any way? Any help/advice would be amazing. Thanks!
  19. Hi everyone! Newbie investor here, currently working on our 1st and 2nd investment property. Going forward I'm looking to purchase future properties in a limited company and would appreciate any help on the steps required to set up a limited company and any advice and pitfalls to avoid during the process. Also wondering if anyone rents off their own limited companies and whether that makes things cheaper at all or whether it makes sense economically. Looking forward to getting stuck right in to the forum! Thanks in advance!
  20. Hi All, I've been listening to R&R for a couple of years now but first time on this forum. Hopefully I can get some help. I live in London in rented accommodation and have just bought my first property £65k) in Scotland through a limited company set up with a friend. I'm concerned that by purchasing this property I may now be impacted by the new stamp duty surcharge of 3% when it comes to buy a property for me to live in. Assuming this will be in London would mean that it would cost me a min of £10-15k in tax which would spoil the benefits of my limited company investment. I asked a solicitor, and accountant and a mortgage broker for their advice and they all said that they "believe" I would not be impacted, but then I heard a tax expert on the property podcast (ASK121) say that the surcharge would be applied in this case. Not sure why I can't get a straight and definite answer from any of these advisors. Sorry for the long message but can anybody confirm or deny if the surcharge would be applied on my first time personal purchase if I already have a property through a limited company? Has anybody been in this situation who could share the ecperience? Thanks! Ricardo
  21. Hello Hubbers! We have finally got an offer accepted on a one bed flat facing the sea! We aim to short-term rent it on booking.com and Airbnb. After speaking to two mortgage brokers, there is only one lender who will offer a mortgage to us as a holiday let through a limited company. They are offering an average 3.3% for a two year fixed rate but has £2800 of fees attached to it (property is only £160k). Plus really horrible rates for solicitors which I might be charged twice for (dual representation??) My accountant doesn't really understand about property specifically and isn't super savvy in this area. Does anyone have an idea of what to do for a new business that will be renting through sites like Booking.com or Airbnb? Can anyone give any advise on how to set the company up and any alternative mortgages? I don't want the property to fall through my fingers! Thanks in advance! I truly appreciate any help.
  22. Hi everyone - can anyone advise on the tax implications of this scenario: I have equity in my main residence which I'd like to remortgage and lend the finance to an SPV ltd company to buy BTL flats. I'm a higher rate tax payer so buying in a ltd co. definitely makes more sense for me. I know if I bought the BTLs in my personal name then I could deduct part of the interest payments prior to tax. Is there any tax efficient way to claim interest relief if the mortgage is taken out personally but used to buy properties within a limited company? If I charge my company interest on the loan, I will get the corporation tax relief but then have to pay 40% tax on the payments via my personal tax return which makes no sense. I'd be better off charging zero interest if this were the case. If there's no way round this, does it make more sense to take out a ltd co BTL mortgage with higher rates so at least I can claim the interest repayments as an expense? Realise I'll have to do some number crunching but wanted to get the principles straight in my head first. Thanks in advance!
  23. Hi - I have put an offer in on a property in Stockport. Should I purchase it through a limited company or as a sole trader? I have one other property and planning to buy another property in Stockport which would bring me to three BTL. I have applied for planning permission to split my London BTL into two separate properties. Any advice would be much appreciated. Kindest regards Elizabeth Many thanks
  24. Hello fellow hubbers, I was wondering if there was any tax experts out there or anyone that has experience of holding properties in a limited company for both flipping and BTL that could help me. I've read many times in the forum that it is best to have 2 separate companies, 1 for flips and the other for BTL, however I can't find any examples of why this is the case. After discussing with my accountant he says that it is fine to have rental properties and flips in the same company but I'm sure this isn't correct. Does anyone have any examples as to the benefits of having them held separately? Many thanks Lee
  25. Hi all, Firstly thank you for taking the time to read this, and was wondering if anyone had any help, advice or has been in a similar situation. I'm currently looking into opening a Limited Company for obvious reasons to both buy/renovate/sell property and also as a means to holding and acquiring buy to lets. If it helps, all people including myself in the following questions are higher tax payers. Questions is as follows: 1) I have a friend who has 20K to invest, they are interested in buying a buy to let with myself, whereby we get a company buy to let mortgage (through the limited company I am opening), whilst splitting the initial deposit amount of 40k between us. They do not want to run or operate a company, however I do as I plan to do more than just this one. How will this work with regards to the mortgage? Could this be as simple as a 20k loan into the company? Or the purchase of shares in the company? How do they protect themselves and how do I protect myself with regards to the mortgage payments? 2) In addition to the above, I am looking to go into property development with my father, where we will be buying properties for cash at auction with the sole intention to flip once ready (maybe 1/2 a year). This will be the main aim of the company, but buy to lets may creep up as and when dependent upon the situation. The main issues I'm having are, how will it work with regards to my limited company, receiving a 20k investment for a buy to let property with another - not associated with the company? How will ownership of this be structured and work? I obviously want this to be as fair and as transparent as possible, however as this is a one off for them, but likely to be a full-time career choice for me, I want to get this right. In addition to this, I really need to the investment from the initial 20k for the first buy-to-let to get the ball rolling with the renovations to come in the future. Just wanted to do it the most tax-efficient and sensible way. (To add, I know I need to speak to a specialist, and in due course I will, I just want to ensure I have a basic understanding of what should be so I know the right track to follow). Many thanks for all help received.
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