Help selling a house to my own limited company

somethingcorporate

benl12 wrote: »

Everyone I've spoke to about financial planning says a pension is a good way to reduce my tax. I just say I don't believe the pension system will be around in its current form when I retire so there’s no point. No one has managed to convince me that private pensions will be worth anything in 35 years time when I get to retire.

It doesn't matter whether it will be around in its current form or not, things are rarely changed retrospectively when it comes to pensions. Pension is just a tax wrapper, it is exactly the same as investing in S&S Isa's except you can get tax relief on your contributions. i.e. you pay in 80p and it gets topped up to £1.20 with (higher rate) tax relief. Where else can you get such good returns on your net income?

You could also make pension contributions from your company which would also reduce your taxable profit.

You should really do some research into pensions because you are quite, quite wrong in your assertions and it is an excellent way to prepare for the future.

benl12

nrsql wrote: »

Why can't you reduce the amout you get paid from the company? Just reduce the dividend payment.

Its a little more complicated than I've been saying, basically, I get paid from another company I have shares in and that takes me in to the 40% bracket. I can't reduce that salary and dividend payment. My company doesn't pay me anything at the moment. Thats how its managed to build up enough cash to buy my old house for cash.

What good is the money to you if its just stuck in your Ltd Co?

Well if things go wrong with my business I can pay myself more. I don't always expect to be earning £40kish so it'll build up for when it all goes wrong. Also, I have instant access to it. I just have to pay the extra tax if I want to draw more out.

Where else can you get such good returns on your net income?

No where but as I can't access it until 2045ish its going to be no good to me. Its a whole different debate but basically, the depletion of natural resources, changing demographics and debt will make the world totally different place. Chris Martenson makes a great argument about how the world is changing. I can't post links but google his name.

treetrunks

theartfullodger wrote: »

Surely the patriotic thing to do is pay what tax is normally due promptly & with good humour.. Indulging in tax fiddles is hardly the act of a decent man/woman...

Cheers!

bit of a difference between tax fiddling and tax planning. The latter is perfectly legal and encouraged. If anything like myself the OP is also charging VAT on the services he offers and paying his own employers and employees national insurance. All in i'd be very surprised if he wasnt paying more tax (total value or %) than you're average person on the street.

OP i do a very similar thing, leaving rental income and additional funds inside my company means I can take a year off or retire early and still take a wage.

jamesml

Ltd co's can be tax efficient vehicles for this sort of thing - as said, if you don't need the money now, pay lower tax on it now and then draw it as dividends later when you do need it, or when your income has sufficiently reduced. Once you get to the point where your income has reduced, you could also consider winding the company up, and taking advantage of taking a capital distribution from the company instead, which could be advantageous for you. It may mean rather than cash you receive the distribution in the form of assets instead, and take the property back into your own name again once your income has reduced to the point where you can receive the income at a lower rate.