Property Investment

property_newbie

I have a property which I own personally, I don’t have a mortgage on the property and the rental income is £350 pcm.

I’m not yet due to pay any taxes but I’m so confused about the best way to go about this.

I’m in full time employment earning circa £36,500 per annum.
I plan to invest in further properties – hopefully. My ambition is to get to around 5.

What’s the best way to go about paying my taxes for the current property?

Should I move the property into a company so that it doesn’t affect my employment wage – what are the pro-cons?

What would be the difference in selling the property as an individual or as a company when the time comes? – This property isn’t my main residence

The other properties that I would like to purchase will need to have mortgages – again would it be best to deal make them part of a company.

I would appreciate any assistance.

Thanks

G_M

Forget the company.

Just complete an HMRC Self Assessment form and declare the income and claim the expenses. This is a legalrequirement whether or not tax is payable.

Read this post and all the links:

New Landlords (information for new or prospective landlords)

How long have you been letting the property? Are you late with your SA form? If so, come clean to HMRC before you get fined!

property_newbie

I'm not late, only been renting since late last year.

G_M

property_newbie wrote: »

I'm not late, only been renting since late last year.

:T :beer:

property_newbie

What about investing in other properties, is there any advantage in putting the properties into a company?

Or would the mortgages, insurance costs just increase?

Thanks for reply btw!