Should I buy Property through a LTD Company | Property Investing UK | Jamie York
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- čas přidán 16. 08. 2020
- Popular question: Should I buy property through a LTD company or should I buy it my personal name? Getting off to the right start in property investing is paramount when it comes to future success and deciding if you're starting to buy property through a LTD company or not.
There is a lot of things to remember when it comes to property investing in the UK. And when you're starting out you have a lot of information to know. So I want to give you some help and educate you on some of the techniques, strategies and advice I use with my property businesses. So starting with buying property through a ltd company.
Disclaimer I'm not a financial advisor and this advice should not be seen as financial advice.
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What other videos do you want me to cover?
Hey Jamie, Im get a bit obsessed with your videos. 🤦♀️🤷♀️
I love them, thank you for all of them. ❤️
Im started my investment journey when I was 21 in Hungary, I helped my parents to buy an investment property what is doubled the value in 5 years.
Since I live in uk (and lived in a shared house👎) I always wanted to own my home. 🙈 I done it last year 🤗, so I can't stop - it is reminds me for a good egg hunting😹, this year Im gonna purchase the next one 😎, and because Im gonna be a high tax earner from this I really appreciate this video! 👏🏻
On the other hand to answer your question, I would really pleased to see a video the legal requirements of the buy to let (for example the sockets, EPC, how to rent guide etc.), also would be nice to cover a wich are the key principles for a BTL refurbishment (and if someone like me who do most of the renovation by myself would be good to what I can/can't do (like kitchen and bathroom electricity)).
About tax I would have an other question: it is like, if you are a high tax payer, and you are the director of the Ltd, how you can take out from your profit what is not salary (40% tax rate) or dividend (32.5% tax), is there any legal way? Or how we can make our money working for us (as ISA, as stocks?shares?bonds investment), during the period when I can't afford the next property but I don't want to waste my time?
I hope I haven't gave you to big homework? And sorry if any of my questions are stupid and the answers are pretty obvious. 🤦♀️
😘😘😘😘
Found your channel recently and im hooked! Keep up the great work. Im just about to buy my first BTL, i have 50k deposit, realistically in my area (central essex) im looking at 200k apartments/maisonettes. Maybe a video on Freehold vs Leasehold would be great. On the surface its a no brainer but is it worth buying Leasehold if thats all that you can afford? Alternatively is do you recommend buying property local to where you live or is it worth looking further afield?
Jamie great videos, keep it up. Recently I am hearing about smart company set up but no one tells in details . Could you please make a video on it. Thanks
Still a bit confused about VAT tbh, a vid on that subject would be really helpful! Claiming back VAT on materials sounds good, but do you then also have to charge VAT on the rental income?
This guy rocks, he talks my language. As it is, from a real world perspective. So much information, learned so much.
👍👍
Really informative videos mate, thanks for putting in the time to make them. Learning a lot.
No problem 👍 More to come!
Good to hear a balanced view - interested to see a further video on not owning when bought in a ltd company...
Noted!
Nice one Jamie. I’ve been asking this question to myself for a while now. Some definite food for thought here...
Glad you enjoyed it
Thanks for your advice in another video about Ltd vs personal buying of BTL property. I found it very helpful.
Glad it was helpful!
I've been thinking about that for a while🤔 awesome video Jamie👍
Glad I help!
Hi Jamie, another excellent video. Well done for your amazing content.
Thanks so much! There is more to come!
@@JamieYork I'm looking forward to it. I've sent you a message on Instagram, it would be great if you got a few minutes to take a look.
If you want to leave the company to your kids look at setting up a FIC (Family Investment Company), this will allow you to pass your business on to your kids without massive sting from the inheritance tax.
Buy to rent as an expat!!! I’d like a bit of advice about investing in the UK when living abroad! If you can send any my way it would be great.
Great, informative videos by the way.
No problem at all, let me know how I can help!
Thanks for Another great video Jamie, I am in the higher tax bracket and do not want to be liable for more ex-wife maintenance so think for me anything other than Ltd is financial suicide. Do you have any good resources about ltd for property + brokers and lends that are good for ltd (as I imagine when you spin it up it has no history so lenders will be hesitant). - thanks in advance
I'm going to ask you the question you are least looking to answer. V quickly, 4 mates looking to cash buy property (buy n flip). Looking to trade between 3-5 years. What you recommend?
Thanks for the video. How is your property business structured? Cheers
Thanks Simon! I’ve got a fairly complicated structure due to partners and different types of businesses so some in personal, more in business and starting to look at setting up in Dubai For some areas of business with a more intellectual property base
Hi Jaimie hope you're well mate. I noticed your using a Podcast mic, do you have a podcast? Really enjoying the videos.
One is in the works!
@@JamieYork id listen to this.... just searched on apple but can’t find anything. Thanks for your content 👍👏
Hi Jamie do you offer goal and strategy advice? I really enjoy the video’s you produce and I need help to expand my portfolio into a ltd company because of the higher tax band with my salary etc.
My exit strategy is also to hand it down to children in the future and hold onto property until am pan bread 🍞
Hey Arthur! I hope you're well and thanks for touching base. Very happy you got some value! More than happy to have a chat about a strategy day, feel free to shoot me a message on Facebook: facebook.com/jamieyorkaspire
@@JamieYork Hi, thank you for the reply. Unfortunately I am not on facebook. I only really use this channel as social media. Have you got a personal website or e-mail contact? Regards
I just bought my 1st house being under 100k 2 bedroom. I have noticed that could get 575 a month if was to rent it out in the future. Can I set up a company and transfer/re mortgage to a buy to let.
YEs you can. Speak to your accountant
The Best
Great vid, i am thinking to go ltd so this is helpful. How easy is it to pay yourself through in a ltd structure. Does 100% of the rent go to yourself or does some have to be held back for the business? Or do you pay yourself through periodic dividends? And if a property is sold through a ltd company will this simply be capital gains tax that comes into play? Slowly catching up with your latest vids, perhaps you could cover the breakdown of payment / associated taxes in a future one. Great stuff
Accountant here but this is not financial advise...
You can pay yourself one of three ways;
1) Company can pay a salary or bonusto you as the director - you would need to set up a PAYE scheme or a payroll bureau/your accountant do this for you. The payment could be monthly or adhoc in theory.
2) The company can declare a dividend which is paid to the shareholders (you). A company can only pay a dividend from its profits (rent after all costs inc salaries paid above) after tax.
3) Directors loan account. The company may lend you money which will need to be repaid. This should be seen as a temporary thing as it will generally need be paid back and does have tax consequences when it isnt temporary.
In reality a mix of all three tends to be used;
Company pays director a salary up to the national insurance threshold (first circa £8k a year doesn't attract national insurance)
Company pays a dividend of £2k to use the tax free "dividend allowance".
Of course this will all be dependent on your individual circumstances.
What Jamie maybe didnt cover in here is the fact with a limited company your only forced to pay around half the tax bill in the year you make the profit. The other half is when you actually take that profit from the company. By leaving it in the company you can offset that 30 years or depending on your exit plan indefinitely. This leaves you free to benefit from compound growth on the part of the profit you didn't take as income therefore didnt pay tax on :)
@@iplaywaytoomuch thanks Andrew, very useful to know and will explore more. Appreciate the info
Great addition of value there Andrew, really valuable. Thank you
All corporation tax if sold mate, not capital gain. Andrew has covered a lot below. For me, I don't touch the money, I let it compound as much as possible
Hi Jamie, I currently have 4 BTL's in my name plus my home is on an interest only mortgage. Do you think I should transfer these into a limited company or just going forward any new BTL's put into a limited company. Thank you in advance for any pointers.
Depends on your strategy. It could be more tax efficent if you did
Find yourself a qualified mortgage and tax professional. He doesn’t know what he’s talking about and much of it is factually incorrect. Follow at your peril.
how do i get started
If you buy auction houses, then you refurbished, and sell again, what is the best way to do this process?
Ltd?
LTD company
Ah found it!
No worries dude! Enjoy!
Hello Jamie
What is your opinion for having 1 property under 1 company at a time?
I think that makes sense if it's a higher risk like new build. If it's for each BTL then I just think it's a bit over the top and causes too much paperwork each year with the accounts
@@JamieYork soon could we be paying 25% cooperation tax on profits over 50k, whereas with lots of small property companies from say getground will enable people you to pay just 19% cooperation tax as your spreading your income
I know you said to get financial advice from an advisor but thing is, if im looking for a second opinion, one advisor might say, go for LTD. On the other hand, another advisor might say otherwise. Personally, I'd rather hear from an investor like you to be honest, because what I've noticed lately is that a lot of investors are using LTD Companies for their property portfolios. Hence the reason why I'm watching this video to find out the big WHY.
There are a lot of other factor that need to be considered too - You are best asking a financial advisor - But I know this strategy worked for me
i'm pondering on whether to go LTD or personal for future BTLs, the available BTL mortgages rates will be quite a bit higher with LTD? i guess also depends if your also aiming to scale up the numbers of properties /selling/refinancing etc, but for handfull of properties maybe self is just simpler overall.
All about what you want to do. You can offset more tax with a LTD Company but it is ALWAYS about what works better for you!
I have been advised that as a 20% tax payer, although i cannot claim tax relief on the mortgage, as long as the property profit is under 30k per year that I get tax relief on my property profits, but once I become a 40% tax payer, I lose this benefit. Are you able to explain what this is and how it works?
Hi a first time buyer question.
Can I use my buy to let company s profit to pay my monthly mortgage ? (A small contribution £400/M )
I'm hoping to buy a second property, so my existing flat become buy to let ,may be I will have to do it under a company, on this property after mortgage I will be make £400/M (after interest only mortgage payment) can I take that money (£400) to pay towards my new properties mortgage ? I will be living in the new property.
Thank you ❤️
Yes, for the BTL, but not for your personal home that you live in as it would be a taxable event as far as HMRC are concerned
Hi Jamie do I need 3 years accounts to borrow if I am a Ltd
Nah. After 12 months sa302’s you get access to some lenders. After 2 Years you’re pretty solid
@@JamieYork Thanks
SPV good？
SPV is fine, it's just a ltd company for a specific purpose
thanks for confusing me more lol, came for answers and got none
Haha, glad to ermmmm. Help? 😆 Sometimes the videos give you more questions to go away and think about!
Apg
Thanks Nick, go to www.aspirepropertygroup.co.uk and fill in your details :)
Informative and a serious topic could do with less silly humour
I just have fun :)
Jamie - is there an email account I can contact you on ?
Instagram is best @jamieyorkaspire