Aside from the possible bad timing (top of market?), could I buy a flat near my gig, then use the company to rent it from me on a market rent?
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Can I buy and company rent from myself?
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Could be wrong, may be some obscure rule, but can't think of an obvious reason why not.
If a reasonable amount of rent is paid why does it matter if you or someone else is landlord? If you did overpay and thereby reduced your company profit for tax, the extra rent you pay yourself is taxable anyway surely, so can't see it can be seen as any means of tax avoidance.bloggoth
If everything isn't black and white, I say, 'Why the hell not?'
John Wayne (My guru, not to be confused with my beloved prophet Jeremy Clarkson) -
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Originally posted by johhnysalad View PostAside from the possible bad timing (top of market?), could I buy a flat near my gig, then use the company to rent it from me on a market rent?Comment
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Originally posted by dude69 View PostYour company has no use for a flat. You would have to pay income tax on the benefit-in-kind obtained through occupying the flat.
I can't see how a BIK arises?Regards, J.Comment
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And who is going to live in the flat?
If you are living in the flat then you are an employee of the company being provided with accomodation and it will be taxed as a BIK.
If the company is going to rent it from you then it must remain unoccupied or be used as a business and not have anyone living there.
KComment
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Originally posted by johhnysalad View PostEh? Company doesn't own flat, I would, as "landlord". The company would then rent on a commercial arrangement from the "landlord", then I as the "renter" would occupy.
I can't see how a BIK arises?
IANAA, YMMV etc.Comment
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Originally posted by Keldin View PostAnd who is going to live in the flat?
If you are living in the flat then you are an employee of the company being provided with accomodation and it will be taxed as a BIK.
If the company is going to rent it from you then it must remain unoccupied or be used as a business and not have anyone living there.
K
The money paid would need to be declared on a P11D, but relief can then be claimed back so there is a 0 tax bill on it.Comment
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I was looking at the idea of my partner buying a caravan and renting it to the business at market rate. The accountant advises against it though. Something to do with "connected persons"Comment
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won't you have to declare the income that you get from rental and therefore pay income tax on it ?Cenedl heb iaith, cenedl heb galonComment
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