BTL property in LTD and VAT

[WTFH]

i own btl in the Ltd and it’s very tax efficient. Mortgages rates are higher but my company Ltd’s are all mortgage free

You also claimed that you earn 0 income from your company and pay 0 tax.

It's clear from your responses that you live in a fantasy land where you do no work, earn no money, pay no taxes, but manage to survive. One can only assume you are a Tory MP, a "friend of a Tory", a liar, or a combination of all 3.

[eek]

You also claimed that you earn 0 income from your company and pay 0 tax.

It's clear from your responses that you live in a fantasy land where you do no work, earn no money, pay no taxes, but manage to survive. One can only assume you are a Tory MP, a "friend of a Tory", a liar, or a combination of all 3.

or a PM - given the typical project plans I see,

[NowPermOutsideUK]

You also claimed that you earn 0 income from your company and pay 0 tax.

It's clear from your responses that you live in a fantasy land where you do no work, earn no money, pay no taxes, but manage to survive. One can only assume you are a Tory MP, a "friend of a Tory", a liar, or a combination of all 3.

Indeed that was true - And that was a polite way to tell you to mind your own business

I also note that you failed to answer my third question which was for you to disclose the tax strategies you employ

As this is business forum and the question is BTL in Ltd it would be beneficial for all valued members to keep the discussion on track and contribute only if you have something relevant and realistic to say - In my case I do have BTL property in Ltd and I would be keen to have the conversation on that topic continued here

The playground is open called General

[WTFH]

I also note that you failed to answer my third question which was for you to disclose the tax strategies you employ

The tax strategy I employ is to pay the required taxes, to earn a salary that is greater than the amount I put into pension schemes, and to ensure that I am not hiding money by transferring it to family/friends while claiming they work for my limited company, or other strategies that would be considered high risk.

You say that you have a BTL in your Ltd and that it has no mortgage, but there is no profit generated from it. That would imply that it's a very poor investment in a BTL if there's 0 return. Unless, of course, you're not being honest with us or the taxman.

[luxCon]

The tax strategy I employ is to pay the required taxes, to earn a salary that is greater than the amount I put into pension schemes, and to ensure that I am not hiding money by transferring it to family/friends while claiming they work for ...

If you are ensuring your salary is greater than your pension contributions, then thats your choice. However you might as well give your money away to the poor and needy, rather than HMRC.

For a LTD Company contractor you are better off paying max pension as an employer contribution, with smallest salary. Perfectly legal

[Fred Bloggs]

The tax strategy I employ is to pay the required taxes, to earn a salary that is greater than the amount I put into pension schemes, and to ensure that I am not hiding money by transferring it to family/friends while claiming they work for my limited company, or other strategies that would be considered high risk.

You say that you have a BTL in your Ltd and that it has no mortgage, but there is no profit generated from it. That would imply that it's a very poor investment in a BTL if there's 0 return. Unless, of course, you're not being honest with us or the taxman.

And anyway the smart(er) money would have their property portfolio exposure in their SIPP by investing in real estate investment trusts which are completely hands off, professionally managed and free of hassle as well as being within the SIPP tax shelter. But it doesn't sound half as sexy, I guess.

[NowPermOutsideUK]

And anyway the smart(er) money would have their property portfolio exposure in their SIPP by investing in real estate investment trusts which are completely hands off, professionally managed and free of hassle as well as being within the SIPP tax shelter. But it doesn't sound half as sexy, I guess.

Hahahaha - You means the REITs that were heavily invested in commercial hotels and restaurants and who had to gate investors before they could cash out ?! Never mind the service charge fees and consultant fees that they pay to manage the asset

No thanks - If I want to have property exposure it is better to be residential and better to manage personally - That way you dont have city slickers creaming 20% (ie foxtons) for setting up a tenancy ...

[Fred Bloggs]

Hahahaha - You means the REITs that were heavily invested in commercial hotels and restaurants and who had to gate investors before they could cash out ?! Never mind the service charge fees and consultant fees that they pay to manage the asset

No thanks - If I want to have property exposure it is better to be residential and better to manage personally - That way you dont have city slickers creaming 20% (ie foxtons) for setting up a tenancy ...

No, I don't. You really haven't a clue have you? Never mind

[luxCon]

And anyway the smart(er) money would have their property portfolio exposure in their SIPP by investing in real estate investment trusts which are completely hands off, professionally managed and free of hassle as well as being within the SIPP tax shelter. But it doesn't sound half as sexy, I guess.

You are just trolling, right?

[ChimpMaster]

My situation is pretty standard.
LTD stopped trading due to IR35.
I will change SIC code to become investment company.
My accountant dont do VAT. I did it myself on FRS VAT so far.
So they do not offer VAT advice (for free). So you bunch being cheap I wanted you opinion first.
Accountant is happy to restructure LTD to have properties in it.

If you have sufficient funds in the Ltd (which it sounds like you do) and can map out the next 2 or 3 years of your working life, then it is better to MVL and 'quit' contracting for that time. This will be the best opportunity to extract funds at a beneficial tax rate. You can then very easily start a new Ltd Co for BTL purchases and loan (the now personal) funds into that company to buy investments. The new Ltd Co will then owe you that amount of funds (personal) tax free. Or you can leave the loan outstanding and charge an unsecured loan rate on it, such as 8%, so that the Ltd pays you this % on the loan as personal income each year... recurring income but bear in mind it is taxable at your marginal rate.

Read some of my older posts for more info.