Do I need accountant for SPV?

[Darren at Fox-Bartfield]

VAT

You don't pay Vat on rentals.

Residential property, that's correct however for Commercial Property different ball game. You may have to or be beneficial to do so if commercial.

[dx4100]

You don't pay Vat on rentals.

Ah cool

[diseasex]

Ah cool

Not exactly as rates are higher when taking on limited. Based on what one of the advisor said its between 4-5%APR.
All in all i think it's worthwhile.

[northernladuk]

Not exactly as rates are higher when taking on limited. Based on what one of the advisor said its between 4-5%APR.
All in all i think it's worthwhile.

You think???

[diseasex]

You think???

Too many variables, and everyone should be able to count it for themself. However hefty dividends tax for high earners definitely make LTD option more desired especially with indexation.

[dx4100]

I presuming if I bought a holiday home this way I couldn't just use it for free as it would become a BIK ?

I would basically have to pay myself the going rate for its use ?

[Darren at Fox-Bartfield]

Holiday Home

Strictly speaking yes, it's a BIK. If you bought the property and there was no rental income going through, questions are likely to be asked if HMRC take a look.

[dx4100]

Strictly speaking yes, it's a BIK. If you bought the property and there was no rental income going through, questions are likely to be asked if HMRC take a look.

Well the plan would be that we use it maybe a couple of weeks a year and then its rented out to market for the rest.

Just been doing some reading and its all a bit tulip...

If I use it just once then it becomes BIK and I have to pay the tax based on use of it for the WHOLE YEAR

You can use ESC A91 to reduce the BIK to the period you use it if you offer it other employees. I am the only employee so I presume that isn't an option ?

[northernladuk]

Well the plan would be that we use it maybe a couple of weeks a year and then its rented out to market for the rest.

Just been doing some reading and its all a bit tulip...

If I use it just once then it becomes BIK and I have to pay the tax based on use of it for the WHOLE YEAR

You can use ESC A91 to reduce the BIK to the period you use it if you offer it other employees. I am the only employee so I presume that isn't an option ?

You are? Do you have a contract of employment?

[dx4100]

Strictly speaking yes, it's a BIK. If you bought the property and there was no rental income going through, questions are likely to be asked if HMRC take a look.

Presuming this advice is still valid....

I seem to be ok as long as I am actually trying to rent it out which I will be doing:

[ARCHIVED CONTENT] UK Government Web Archive – The National Archives

So I just need to pay the BIK based on the time I use it....