Set up a company to save tax ?

amduser

Hey guys,

I am letting out a property with expected annual rental income of £12k, and I will start to pay 40% income tax next year, is it worthwhile to set up a company to reduce the tax liability?

If so, do I need to transfer the property to the company?

Thanks,
:money:

clutton_2

expecting to run a property business via advice from a forum such as this is madness... no one can advise you as to how to set this up, as your tax liability depends on yhour other life circumstances, employment, savings, dependents, expenses, etc etc

i doubt you will make much money in the first few years of BTLing anyway.. have you discovered which expenses you can claim against rental income

Setting up a property company has distinct advantages in certain circumstances, depending on what type of property business you want to run.... so talk to an accountant who specialises in property ....

there is a great one on property tribes forum called Stephen who i heard talk last night...

get some professional advice before you buy any more property

poppysarah

Speak to an accountant.

missile

I would suggest if your income is "only" £12K before deductions, then it would not be worth the cost or hassle of setting up and running a limited company.

withabix

With £12k turnover you should be able to show a healthy loss....

clutton_2

and carry that loss over to next year - unless you are mortgage free of course...

amduser

withabix wrote: »

With £12k turnover you should be able to show a healthy loss....

emm? can you elaborate it?

clutton_2

add up your expenses for a start....