Most of what I would say is posted in here...
http://forums.contractoruk.com/accou...lush-fund.html
FWIW since I posted that I found out LondonMidland have free car parking in there stations for EVs (no charging points though) so another £1500 a year saved! As other people pointed out the cheapest method of motoring in a old banger and claim your 45p/mile. I've been doing that for 8 years and decided a new motor was in order and an EV is the most efficient for tax and running cost purposes. Went with a BMW i3 Range extender (REX) as the charging infrastructure is patchy at best so at least you have the REX as a backup to recharge the battery on the fly and can keep topping up with unleaded till you get back home. It's lovely inside, drives itself in stop start traffic uptp 25 mph, is faster than an M3 on the 0-40 and you can pre heat the interior from your smart phone so no scraping required to defrost.
I've also been to see an accountant about starting a business doing property development on land at the side of my house. Once planning permission is approved I'll be forming a new group company, and a sister "Myco construction Ltd" company. Transferring a bunch of cash from my contracting company to fund the ground works and taking on a commercial mortage for the rest [ at 8-12% and guaranteed personally by me
].
Going to build 3 flats. The best part - I am lending the land to my company to build on with an IUO, that once the flats sell gets paid back to me free of capital gains tax as it was part of my primary domestic residence. £75,000 tax free - not bad. I still have the original house - just no side garden which is only used as a drive anyway. space at the front for parking.
Any losses in the construction co can be offset against corporation tax of the contracting co - via the group. Though I expect to make £150k. That will be kept as retained profit to repeat the process/ become my alternative pension fund.
You need to be looking to buy a house with land spare if you want to do this. Ideally a 3 storey end town house - that can also be converted to flats afterwards. For about £50k, you can split the original house into 3 floors and sell it as 3 units for about 50% more than what it's worth as a single house. Council might be supportive as you are effectively creating affordable homes without using green land. I expect to make £100k on the house conversion.
You'll have to pay corporation tax on the profits. The new builds are VAT free, but conversions you pay full VAT. So I might leave that for a while and do some more house / flat building elsewhere and just rent out what is my current PDR.
Just employ a decent Building PM and carry on with the day job. Treat yourself as customer / specifier and don't get involved in something it's cheaper to employ someone else to do. Just check up everyday that some progress has been made.
The final bit I've done is started my Mrs up in business with a loan doing importing / exporting via 3rd parties. She's at home doing sweet FA and I can't earn any more money without paying 40% Tax. So I've got her on the web showed her how to get the suppliers and now she's on it. Could end up earning more than me based on profit margins! You can buy stock and have it delivered direct to Amazon for order fulfilment. Or do it from the garage in spare time till it gets up and running. Always do test order with Chinese suppliers as quality control is non existent. Expect delays from anyone... even in UK. We were told 3-4 weeks for a clothes order and 8 weeks later we still haven't had delivery.
http://forums.contractoruk.com/accou...lush-fund.html
FWIW since I posted that I found out LondonMidland have free car parking in there stations for EVs (no charging points though) so another £1500 a year saved! As other people pointed out the cheapest method of motoring in a old banger and claim your 45p/mile. I've been doing that for 8 years and decided a new motor was in order and an EV is the most efficient for tax and running cost purposes. Went with a BMW i3 Range extender (REX) as the charging infrastructure is patchy at best so at least you have the REX as a backup to recharge the battery on the fly and can keep topping up with unleaded till you get back home. It's lovely inside, drives itself in stop start traffic uptp 25 mph, is faster than an M3 on the 0-40 and you can pre heat the interior from your smart phone so no scraping required to defrost.
I've also been to see an accountant about starting a business doing property development on land at the side of my house. Once planning permission is approved I'll be forming a new group company, and a sister "Myco construction Ltd" company. Transferring a bunch of cash from my contracting company to fund the ground works and taking on a commercial mortage for the rest [ at 8-12% and guaranteed personally by me
]. Going to build 3 flats. The best part - I am lending the land to my company to build on with an IUO, that once the flats sell gets paid back to me free of capital gains tax as it was part of my primary domestic residence. £75,000 tax free - not bad. I still have the original house - just no side garden which is only used as a drive anyway. space at the front for parking.
Any losses in the construction co can be offset against corporation tax of the contracting co - via the group. Though I expect to make £150k. That will be kept as retained profit to repeat the process/ become my alternative pension fund.
You need to be looking to buy a house with land spare if you want to do this. Ideally a 3 storey end town house - that can also be converted to flats afterwards. For about £50k, you can split the original house into 3 floors and sell it as 3 units for about 50% more than what it's worth as a single house. Council might be supportive as you are effectively creating affordable homes without using green land. I expect to make £100k on the house conversion.
You'll have to pay corporation tax on the profits. The new builds are VAT free, but conversions you pay full VAT. So I might leave that for a while and do some more house / flat building elsewhere and just rent out what is my current PDR.
Just employ a decent Building PM and carry on with the day job. Treat yourself as customer / specifier and don't get involved in something it's cheaper to employ someone else to do. Just check up everyday that some progress has been made.
The final bit I've done is started my Mrs up in business with a loan doing importing / exporting via 3rd parties. She's at home doing sweet FA and I can't earn any more money without paying 40% Tax. So I've got her on the web showed her how to get the suppliers and now she's on it. Could end up earning more than me based on profit margins! You can buy stock and have it delivered direct to Amazon for order fulfilment. Or do it from the garage in spare time till it gets up and running. Always do test order with Chinese suppliers as quality control is non existent. Expect delays from anyone... even in UK. We were told 3-4 weeks for a clothes order and 8 weeks later we still haven't had delivery.
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