Tax implications on property developing with silent partner

drummer_666

If there's no benefit of doing buying the house in both names then I don't really see the point in paying for an accountant because doing SA tax return is straight forward and then i'm a few hundred pound worse off

Unless they will find loop holes etc to save me that few hundred pounds back in expenses/claims etc?

drummer_666

dave I think I'll wait until I get better returns before I think about doing this as a company

At the moment I'm probably earning around £25-30k a year on average through property. Not complaining though as take around 60 days holiday a year and have no mortgage/rent to pay! Although currently reinvesting most of it

atush

dave2 wrote: »

Do the tax returns properly, otherwise it's a "deliberate" error and arguably "concealed" which could put penalties at 100% of the tax due. The tax man requiring him to pay his tax would not automatically correct your tax either, you'd have to submit a mistake claim completely separately. HMRC would not see it as the total tax paid as being correct, they'd just see two separate errors (or three, due to missing partnership return).

I've no idea of the sums involved here but it might be worth putting it through a company anyway. Bit of paperwork faff but tax should be less due to no NIC on dividends, and if this is your only earned income then you can get paid £5,824 in salary so you don't actually pay NIC but it counts as if you did for state benefit entitlement purposes. If sums are big enough the tax saving might pay for getting an accountant to do all the paperwork hassle.

Not to mention if you have a LC, then you can pay yourself a pension from the profits.