New landlord-can I set up property management but still own flat personally?

sbmcb

I've read threads about landlords transferring properties into a company name which means limited company collects rent and landlord takes a small monthly management wage and dividends throughout the year.

My query is...

We own our flat (mortgage) but are both higher rate tax payers. Buying a new house and need the rent from the flat to help us with mortgage repayments.

Can I start up a limited company which collects rent from the tenants and we do the same thing-pay dividends but still own the flat ourselves?

Don't want to do anything dodgy but can't really afford to be losing 40% of the rental income after expenses...

Any advice?

Nicola_Ed

Hi

Not sure how much you expect your net rental income to be but I would try and estimate the potential tax saving as this could be less than the annual cost of running the company. That is without looking at the problem of paying rent to the company that does not own the house.