We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Rental Income - effect on benefits
Comments
-
unless the property is the asset of a limited company then there is no distinction between him owning the property and the business. They are one and the same thing.
Sometimes it is possible to claim benefits for a short period (6 months i think) whilst you are trying to sell a house you own but do not currently live in. E G it is rented and tenants are under notice or you are trying to sell or is part of a financial dispute resolution associated with divorce proceedings.
Claim benefits whilst tenant's serve notice period and the rent will be counted as income, then move in after they leave.0 -
Oldernotwiser wrote: »And, of course, he used to be an accountant!
I thought you needed to be intelligent to be an accountant!0 -
-
-
Good heavens he does get very worked up doesn't he?
~*~ If you don't need it, it isn't a bargain ~*~0 -
In part right, in part wrong.
You seem to be forgetting that the OP doesn't have the property. If the balance sheet and business has been set up properly, the property is with the business which is used to generate an income for the OP. The OP obviously has to account to the council for any income he gets from the business, but the OP has said that this year is a loss!!
What is so wrong in leasing a £70,000 Range Rover for the business? Yes he would suffer some liability 'if' it was used for business purposes, but what happens if he has another car that is used for private purposes only.
HMRC have no say in what car he leases! Could be a Mini or an Aston even!!
As I have said, the OP needs to take on some advice from a Chartered Account as regards business planning.
Rather than suggesting I'm "part right, part wrong" you should review what the OP said. I'm not sure how you've concluded that "the OP doesn't have the property" - he says he owns it, which would make it a personal investment.
I'm rather curious as to why you have jumped to this conclusion, and contradicted my post based on this assumption. It suggests that you were just waiting for such a post to espouse your view?
Anyhow, the idea of frittering capital to avoid tax liability is one of the worst examples of accountancy advice I've ever heard of.
What's more, where you say "Yes he would suffer some liability 'if' it was used for business purposes" - I think you've misunderstood the tax rules - the liability would arise if used for personal purposes. What would be the point of buying a car to service a single property and not making any personal use of the vehicle? The costs would be counter-productive.
A decent accountant would advise using excess income wisely to grow the business and to sweat the assets. You are clearly not one of those.0 -
Rather than suggesting I'm "part right, part wrong" you should review what the OP said. I'm not sure how you've concluded that "the OP doesn't have the property" - he says he owns it, which would make it a personal investment.
I'm rather curious as to why you have jumped to this conclusion, and contradicted my post based on this assumption. It suggests that you were just waiting for such a post to espouse your view?
Anyhow, the idea of frittering capital to avoid tax liability is one of the worst examples of accountancy advice I've ever heard of.
What's more, where you say "Yes he would suffer some liability 'if' it was used for business purposes" - I think you've misunderstood the tax rules - the liability would arise if used for personal purposes. What would be the point of buying a car to service a single property and not making any personal use of the vehicle? The costs would be counter-productive.
A decent accountant would advise using excess income wisely to grow the business and to sweat the assets. You are clearly not one of those.
He is not an Accountant - he is the troll andyandflo etc - been at the sauce and drugs again.0 -
Bless, lovely to have dear old Andy back.....again.0
-
-
How much equity?aprilshowers23 wrote: »...(mortgaged but there is equity in it) ...0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards