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  • FIRST POST
    • Smi1er
    • By Smi1er 10th Jul 18, 10:34 PM
    • 578Posts
    • 392Thanks
    Smi1er
    Buying BTL - Through Company? Or Individual?
    • #1
    • 10th Jul 18, 10:34 PM
    Buying BTL - Through Company? Or Individual? 10th Jul 18 at 10:34 PM
    Buying a BTL cash.

    As an individual I know what I can/can't claim.

    However, also looking at setting up a limited company and buying through that. OH and I would make a directors loan to the company.

    Rental income less is expenses and Corp tax paid on profit. Instead of taking Divis (7.5% tax) we plan to take the max Divi out tax free and whatever is left we will take out through directors loan repayment and therefore tax free.

    Make sense? Worth buying through a company?

    Comments welcome.

    Also when it comes to company tax paperwork how easy is it? I already do OH's self assessment TR as they're self employed
Page 1
    • 00ec25
    • By 00ec25 10th Jul 18, 10:42 PM
    • 6,992 Posts
    • 6,663 Thanks
    00ec25
    • #2
    • 10th Jul 18, 10:42 PM
    • #2
    • 10th Jul 18, 10:42 PM
    However, also looking at setting up a limited company and buying through that. OH and I would make a directors loan to the company.
    Originally posted by Smi1er
    excellent. Funding the purchase by a fledgling company is often overlooked by noobs
    Rental income less is expenses and Corp tax paid on profit. Instead of taking Divis (7.5% tax) we plan to take the max Divi out tax free and whatever is left we will take out through directors loan repayment and therefore tax free.
    Originally posted by Smi1er
    big deal, so 2k tax free

    the rest is a tax free cash repayment which therefore carries an opportunity cost in terms of lost return on the cash invested in the company

    what does your return on capital employed comparison say when you compared your alternatives?

    Also when it comes to company tax paperwork how easy is it? I already do OH's self assessment TR as they're self employed
    Originally posted by Smi1er
    so will the company's Statutory Accounts be prepared under FRS 102 or FRS 105 ?
    Do the directors have insurance to cover the fine for getting it wrong?

    read:
    https://www.rossmartin.co.uk/land-a-property/1588-buy-to-let-ownership-personal-or-company

    https://www.propertygeek.net/article/buying-property-through-a-company/

    https://www.itcontracting.com/letting-property-via-limited-company/

    and this:
    https://www.telegraph.co.uk/property/landlord-guide/limited-company-buy-to-let-properties/
    Last edited by 00ec25; 10-07-2018 at 11:09 PM.
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