Using LTD company to manage BTL property
Tax Planning and Financial

John Chieel
John Chieel
1 Thanks
10 Posts
9 months ago
0

Dear Nrla and informed members,

 

I have a BTL and an HMO. The HMO is purchased using a limited company of which I am a director and the BTL is in my own name. I currently managed the HMO myself and the BTL via professional agency.

I am thinking of using managing the BTL myself to reduce costs. I intend to use my limited company to act as the managing agent and to charge a reasonable service charge for the BTL (I am currently charged 15% of rent by my agent) . I will pay myself a nomimal salary from the limited company and will retain any profit within the Ltd company. The reason for doing this is that the LTD company provides me with greater flexibility in terms of tax arrangements.

So at the end of the financial year, the income from my BTL will be split into two streams. One which will under my personal name, and the other under my LTD (which I may or may not pay out to myself -depending on circumstances).

Before I ask the same question to an accountant, I would like to ask if any forum members do the same and also of any pitfalls I should be aware of.

 

Thank you

 

Johh

 

 

 

Please Login

You must be logged in to participate in our forums, to continue please login below.

Not a member? From only £99 you can join in the discussion and get access to member's only resources and services.

As the home for landlords, the NRLA are here to help you save time, save money, and stay compliant. NRLA membership gives you access to a vast range of expertise, resources, and exclusive member benefits and savings, designed to help and empower members. We also play a pivotal role in campaigning and championing the interests of landlords.