Setting up maintenance co to work on own houses

CURLYSANDY

Hello - I have just retired as a builder/plumber. I have 4 rental properties and find it frustrating that I do work on these properties and yet cannot claim for my labour costs. I am considering setting up a small handyman company to do odd jobs for neighbours, family and friends. Could I then invoice myself when doing work on my own properties. I realise I will have to pay income tax on my income from the business, but could equally off set works vehicle, etc. Furthermore, I want to extend one of the houses and then sell it. Could I also invoice myself for my labour which could be set against Capital Gains tax when selling???
Thank you in advance for any advice offered.
Kev

[Deleted User]

You really have not thought this through.


If you 'invoice' your property business for £2000 your rental profit will clearly reduce by this amount and the tax due will be £400 less on this source of income if you are a basic rate taxpayer.

I presume by 'company' you mean self-employed. You will pay tax on this £2000 of exactly the same amount - £400 AND you may have to pay National Insurance at 9%, another £180. The whole idea could cost you money.