Myth-busting – Electrical Safety installations Act 202011:19 AM, 3rd August 2020
About A week ago 79
Am just starting out with a couple of non-mortgaged properties but plan to grow and as I am a HRT payer I have decided to create a limited company with me and the non-working wife. I have done lots of research and spoke to a few accountant friends and am reasonably confident that I have a good plan which consists of :
– create limited company with 2 shareholders (me-director, wife-company secretary)
– transfer existing 2 properties (I am aware of CGT, SDLT, etc and factored this in)
– also put in some cash to keep the company going in the early days
– after a short period get a mortgage against the 2 properties to fund a 3rd
– repeat as and when finances allow
I am not looking to take much cash out and will re-invest in the main
the only thing that may seem odd is that I have no time to do the actual management of the properties in terms of all the finding-tenants/getting-ready/maintaining/etc stuff so my plan is to use self-employed friend to do all that and I will just pay him the 15% charge that i would normally pay a letting agency. The tenant will still have the contract with my company so the rent is revenue in and the 15% will be a expense out.
I know I can ’employ’ this person but would rather not as he has other things he does as self employed person. I would also use him for all my repairs/refurb etc and pay him per job.
I hope to be up and running by end Sept so just doing all my due diligence in advance of sitting down with an accountant and getting things moving.
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agentsLearn More