Ltd Company Buy to Let ?

Prothet_of_Doom

silvercar wrote: »

So bottom line is that it isn't a company BTL but a personal BTL with the lender seeing (you hope) the tax efficient way you have adjusted your income to minimise your tax bill.

Yes. It was a very easy discussion which got me a decision in principle within about 30 mins. ie if what I've said is true, there will be no issues. That the lender understood, that the profit after CT could but does not have to be taken as income, made all the discussions over the last 2 months with mortgage broker's seem very pointless, like they were erm trying to make it seem difficult in order to justify their commission / fees. Am I too cynical ?
Unfortunately the delay in my taking the money out of the business, for the deposit will result in slightly higher tax burden, and I should have taken half last financial year, and half this year. :mad: my fault. We could wait until April, and save some tax, but :(just want to get started. :rotfl:

Let_Us_See

Prothet_of_Doom wrote: »

I'll cut the story short.

I wish you had!

You end up with a personal and not Ltd Co BTL and then complain advisers have been confusing the issues to justify their fees? The past comments regarding a Ltd Co BTL were correct and would still apply, but you have simply moved the goal posts, and frankly it is a little stupid if you can't understand the difference.

silvercar

Prothet_of_Doom wrote: »

Unfortunately the delay in my taking the money out of the business, for the deposit will result in slightly higher tax burden, and I should have taken half last financial year, and half this year. :mad: my fault. We could wait until April, and save some tax, but :(just want to get started. :rotfl:

If you haven't done your accounts for last year it isn't to late to declare a dividend for that year.

Prothet_of_Doom

Let_Us_See wrote: »

I wish you had!

You end up with a personal and not Ltd Co BTL and then complain advisers have been confusing the issues to justify their fees? The past comments regarding a Ltd Co BTL were correct and would still apply, but you have simply moved the goal posts, and frankly it is a little stupid if you can't understand the difference.

Ah, Yeah but no.

I started off attempting to get a mortgage via ltd company. Found a broker, who could find a lender with silly rates, to lend the ltd company the money. The information led us to decide to go for a personal btl, and take the money out of business for the deposit.

At this point, after a long pause, I start the process by talking to 2 brokers who were both recommended to me, by other people. I suspect they had more complex reasons to need a broker.

It turns out that actually, the amount I want to borrow, the credit ratings we have, the track record of profit from my business and the likely rental income, all puts the borrowing at a low level of risk, so going direct looks to be more sensible.

Of course time will tell. Early days.

Prothet_of_Doom

silvercar wrote: »

If you haven't done your accounts for last year it isn't to late to declare a dividend for that year.

The way I understand it, I've taken some dividend in the personal tax year to April 2015, and that year is now closed. (I've done my self assessment already.) My ltd company year just finished at the end of June, so I can take dividend now based on either profit from that year or from retained profit from previous years. The dividend I intend to take comes from the retained profit that was sitting in the business on July 1st 2014

Or I could take a directors loan, with a view to converting it to dividend when my accounts are ready to submit, but then I think lenders would see that as "a bit dodgy" as they don't like money to come via a loan.

silvercar

The way I understand it, I've taken some dividend in the personal tax year to April 2015, and that year is now closed. (I've done my self assessment already.) My ltd company year just finished at the end of June,....

Sounds like you may be right. I always end up doing my tax return at the last minute. Although this does create a rush, it does give some flexibility.

superdudeo

Interesting article on this today. Personally, the negatives outweigh the positives

http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/11730759/This-is-how-investors-will-beat-the-latest-buy-to-let-crackdown.html

Prothet_of_Doom

superdudeo wrote: »

Interesting article on this today. Personally, the negatives outweigh the positives

http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/11730759/This-is-how-investors-will-beat-the-latest-buy-to-let-crackdown.html

I might just sign my interest in the profit over to my wife, who is unlikely to ever hit the higher rate tax. I think, maybe, perhaps.

Thrugelmir

superdudeo wrote: »

Interesting article on this today. Personally, the negatives outweigh the positives

What's changed? Article says nothing new.

Prothet_of_Doom

One step closer, Valuation is as predicted.