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  • FIRST POST
    • CURLYSANDY
    • By CURLYSANDY 12th Feb 18, 1:16 PM
    • 8Posts
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    CURLYSANDY
    Setting up maintenance co to work on own houses
    • #1
    • 12th Feb 18, 1:16 PM
    Setting up maintenance co to work on own houses 12th Feb 18 at 1:16 PM
    Hello - I have just retired as a builder/plumber. I have 4 rental properties and find it frustrating that I do work on these properties and yet cannot claim for my labour costs. I am considering setting up a small handyman company to do odd jobs for neighbours, family and friends. Could I then invoice myself when doing work on my own properties. I realise I will have to pay income tax on my income from the business, but could equally off set works vehicle, etc. Furthermore, I want to extend one of the houses and then sell it. Could I also invoice myself for my labour which could be set against Capital Gains tax when selling???
    Thank you in advance for any advice offered.
    Kev
Page 1
    • purdyoaten2
    • By purdyoaten2 12th Feb 18, 2:05 PM
    • 824 Posts
    • 387 Thanks
    purdyoaten2
    • #2
    • 12th Feb 18, 2:05 PM
    • #2
    • 12th Feb 18, 2:05 PM
    You really have not thought this through.


    If you 'invoice' your property business for £2000 your rental profit will clearly reduce by this amount and the tax due will be £400 less on this source of income if you are a basic rate taxpayer.

    I presume by 'company' you mean self-employed. You will pay tax on this £2000 of exactly the same amount - £400 AND you may have to pay National Insurance at 9%, another £180. The whole idea could cost you money.
    purdyoaten lost his password
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