Originally posted by johhnysalad
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Reply to: Can I buy and company rent from myself?
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Previously on "Can I buy and company rent from myself?"
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Originally posted by Bluebird View Postso where's the benefit ?
Seems like it should work (IANAA).
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Originally posted by Bluebird View Postso where's the benefit ?
You get a guarantee of a tenant for the period of your contract, so as long as the company is paying you market rate, then why not?
Alternative is company rents from third party and pays them money. You rent to fourth party, and receive money from them that you pay tax on. In the middle of this is an estate agency / management firm (sometimes) taking money from you. As an intro to BTL, might not be a bad way to do it.
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Originally posted by Bluebird View Postwon't you have to declare the income that you get from rental and therefore pay income tax on it ?
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won't you have to declare the income that you get from rental and therefore pay income tax on it ?
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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"
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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.
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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.
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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.
K
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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?
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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?
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Don't see why not - just make sure you declare your rental income as income, as you would anyway.
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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.
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Can I buy and company rent from myself?
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?Tags: None
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