Renting furniture to yourself

tlc678910

If the property is expected to be a long term let I would not bother with furniture. If it is a student let or to be let as individual bedrooms furnished would be expected.

You don't generally get much more rent for a furnished property (unless it is let to students or room by room) and although you have the initial furniture for free you will have to replace/repair it as required and in the case of electrical appliances PAT test them each year.

If you let a property unfurnished no furniture or white good replacement/repair or PAT testing costs and people are more likely to stay and see the place as a long term home if it is filled with their own belongings in my opinion.

I would just sell the furniture while it is any good (or give it away to family, friends, freecycle) as after a year with a poor tenant it would all be ruined.

Tlc

cells

Why not account for the furniture as and when it is replaced? Setting up a company for just furniture seems quite silly in that its going to cost you time and money and admin. unless the furniture is extremely expensive then its not going to be worthwhile.

Also if you are a higher rate tax payer it might be worthwhile maxing out the pension contributions first.

iantojones40

Just curious o.p, why when it's in no way relevant to your question about setting up a company to rent your furniture to yourself, did you feel the need to tell everyone about the £500k inheritance?

AnotherJoe

Cutting to the chase, and repeating myself, the title of this thread is "Renting furniture to yourself"

If that's not as clear cut a case of tax evasion as you can think of I dont know what is. You'll have to come up with a much more subtle and untraceable scheme . Which will still be classed as evasion if its found. All this for marginal savings and a massive blowback should it come to light.

If the BTL is that marginal you shouldn't be taking it on in the first place.

booksurr

AnotherJoe wrote: »

Cutting to the chase, and repeating myself, the title of this thread is "Renting furniture to yourself"

If that's not as clear cut a case of tax evasion as you can think of I dont know what is. You'll have to come up with a much more subtle and untraceable scheme . Which will still be classed as evasion if its found. All this for marginal savings and a massive blowback should it come to light.

If the BTL is that marginal you shouldn't be taking it on in the first place.

a company is a legal entity in its own right. If company F owned the furniture then the OP would not have been renting to himself. He would have been renting furniture off a company, allbeit one he owned

i agree however that it was a contrivance too far and does suggest someone too obsessed with "cutting" tax

Andypandyboy

Person_one wrote: »

Tax evasion =/= money saving.

There's a big difference between ordinary less well off people trying to make their wages and/or benefits go further and wealthy people trying to get away with contributing as little to the public purse as they can get away with.

There is sometimes a very fine line between evasion and avoidance;) and those who are wealthy know just how to stay on the right side of it.

As for the op it regardless of the rghts and wrongs of the suggestion, it sounds like a lot of faff for little return to me.

antrobus

Person_one wrote: »

Tax evasion =/= money saving.
...

In the same way, Shoplifting =/= money saving.

Person_one

antrobus wrote: »

In the same way, Shoplifting =/= money saving.

Well quite.

AdrianC

A question about this furniture...

Is it actually valuable furniture? Financially or sentimentally?

If it is, then why on earth are you contemplating putting it into a low-end rental property where it'll only get trashed in short order?
If it isn't, then there's really no point in any of this fannying-about spending money establishing and running two limited companies.

Renting properties furnished is a long way from being the best way to a low-hassle good investment. Renting them with furniture you actually care about is a great way to exponentially multiply stress without actually increasing income.

Cynical_Monkey

Is this question about cutting tax or saving money in the long run?

The method you've suggested is fairly common and I happen to know a couple of people who have the exact same system set up so it's definitely viable.

If the question is about saving money, you'd actually be better off in the long run if you sold the furniture and let the property as unfurnished, don't have to worry about contents insurance that way and generally, unfurnished tenants stay longer as they often buy goods to specifically fill the property they're in.