Shelter’s Income and expenditure figures highlighted13:57 PM, 4th February 2019
About 2 weeks ago 35
Is it OK to do the self management of a property (its only one initially) via a separate company I own (100%)? Rent would be paid to the company, then the company pays me say 90% of the rent as the landlord and retains the 10% as a management fee.
I am already an employee of the company as I do other consultancy for it – and I genuinely am doing the management as an employee. I am not intending to do this service for anyone else. The company has no financial interest in the property and the AST is directly between the tenants and me as a private individual – the company is simply the managing agent as Foxtons or ReedsRains etc would be.
Benefit for me is that my rental income is reduced which helps keep me in a lower income tax bracket and I can take the 10% out at a later date tax free if I wish by simply repaying a directors loan I previously made to the company.
Would welcome any comments/feedback/watch-outs about this arrangement.
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