Search the Community
Showing results for tags 'tax;'.
Found 1 result
Is this legal? Using yourself as a letting agent...
David McWilliams posted a topic in Legal AdviceI've been thinking about how to minimise the impact of the upper tax bracket on potential profit from BTLs, and came up with something which seems reasonable, but may be on the border of tax avoidance - any thoughts would be appreciated. I want to buy the BTL properties personally, as this should be easiest to get lending. That said, adding onto income, I'll end up losing a large chunk of profit in to HMRC. So, is the following possible. - Own all properties personally. - Start a Ltd letting agent company, which I would own 100%. - Use this letting agent to lease my properties, and 'charge' them an amount equal to or greater than the profit I would personally make each month on the BTLs. So I personally would not make any 'profit', but the business certainly would and would pay the relevant tax for a ltd company. I can then, as a Director, take the money out of the business whenever suits me as dividends, etc, which should in theory afford me more flexibility in keeping my money as tax efficient as possible. Now, I think there was a topic along these lines a few months ago, but I can't find it looking back, so apologies if it is starting a discussion that's already been had. Is this a reasonable idea? Has anyone else considered this, or is it better just to have a good accountant do your books and deal with the tax as it comes? Thanks in advance. David.