Property118 Ltd understands that your privacy is important to you and that you care about how your personal data is used and shared online. We respect and value the privacy of everyone who visits this website, www.property118.com
(“Our Site”) and will only collect and use personal data in ways that are described here, and in a manner that is consistent with Our obligations and your rights under the law.
- Definitions and Interpretation
In this Policy the following terms shall have the following meanings:
||means an account required to access and/or use certain areas and features of Our Site;
||means a small text file placed on your computer or device by Our Site when you visit certain parts of Our Site and/or when you use certain features of Our Site. Details of the Cookies used by Our Site are set out in section 13, below;
||means the relevant parts of the Privacy and Electronic Communications (EC Directive) Regulations 2003;
||means any and all data that relates to an identifiable person who can be directly or indirectly identified from that data. In this case, it means personal data that you give to Us via Our Site. This definition shall, where applicable, incorporate the definitions provided in the EU Regulation 2016/679 – the General Data Protection Regulation (“GDPR”); and
||Means Property118 Ltd , a limited company registered in England under company number 10295964, whose registered address is 1st Floor, Woburn House, 84 St Benedicts Street, Norwich, NR2 4AB.
- Information About Us
- Our Site is owned and operated by Property118 Ltd, a limited company registered in England under company number 10295964, whose registered address is 1st Floor, Woburn House, 84 St Benedicts Street, Norwich, NR2 4AB.
- Our VAT number is 990 0332 34.
- Our Data Protection Officer is Neil Patterson, and can be contacted by email at firstname.lastname@example.org, by telephone on 01603 489118, or by post at 1st Floor, Woburn House, 84 St Benedicts Street, Norwich, NR2 4AB.
- What Does This Policy Cover?
- Your Rights
- As a data subject, you have the following rights under the GDPR, which this Policy and Our use of personal data have been designed to uphold:
- The right to be informed about Our collection and use of personal data;
- The right of access to the personal data We hold about you (see section 12);
- The right to rectification if any personal data We hold about you is inaccurate or incomplete (please contact Us using the details in section 14);
- The right to be forgotten – i.e. the right to ask Us to delete any personal data We hold about you (We only hold your personal data for a limited time, as explained in section 6 but if you would like Us to delete it sooner, please contact Us using the details in section 14);
- The right to restrict (i.e. prevent) the processing of your personal data;
- The right to data portability (obtaining a copy of your personal data to re-use with another service or organisation);
- The right to object to Us using your personal data for particular purposes; and
- If you have any cause for complaint about Our use of your personal data, please contact Us using the details provided in section 14 and We will do Our best to solve the problem for you. If We are unable to help, you also have the right to lodge a complaint with the UK’s supervisory authority, the Information Commissioner’s Office.
- For further information about your rights, please contact the Information Commissioner’s Office or your local Citizens Advice Bureau.
- What Data Do We Collect?
- Date of birth;
- Address and post code;
- Business/company name and trading status;
- Number of properties owned;
- Accountants details;
- Contact information such as email addresses and telephone numbers;
- Proof of residence and ID;
- Financial information such as income and tax status;
- Landlords insurance renewal dates;
- Property Portfolio details such as value and mortgage outstanding;
- How Do We Use Your Data?
- All personal data is processed and stored securely, for no longer than is necessary in light of the reason(s) for which it was first collected. We will comply with Our obligations and safeguard your rights under the GDPR at all times. For more details on security see section 7, below.
- Our use of your personal data will always have a lawful basis, either because it is necessary for our performance of a contract with you, because you have consented to our use of your personal data (e.g. by subscribing to emails), or because it is in our legitimate interests. Specifically, we may use your data for the following purposes:
- Providing and managing your access to Our Site;
- Supplying our products and or services to you (please note that We require your personal data in order to enter into a contract with you);
- Personalising and tailoring our products and or services for you;
- Replying to emails from you;
- Supplying you with emails that you have opted into (you may unsubscribe or opt-out at any time by the unsubscribe link at the bottom of all emails;
- Analysing your use of our site and gathering feedback to enable us to continually improve our site and your user experience;
- Provide information to our partner service and product suppliers at your request.
- With your permission and/or where permitted by law, We may also use your data for marketing purposes which may include contacting you by email and or telephone with information, news and offers on our products and or We will not, however, send you any unsolicited marketing or spam and will take all reasonable steps to ensure that We fully protect your rights and comply with Our obligations under the GDPR and the Privacy and Electronic Communications (EC Directive) Regulations 2003.
- You have the right to withdraw your consent to us using your personal data at any time, and to request that we delete it.
- We do not keep your personal data for any longer than is necessary in light of the reason(s) for which it was first collected. Data will therefore be retained for the following periods (or its retention will be determined on the following bases):
- Member profile information is collected with your consent and can be amended or deleted at any time by you;
- Anti-Money Laundering information and tax consultancy records are to be kept as required by law for up to seven years.
- How and Where Do We Store Your Data?
- We only keep your personal data for as long as We need to in order to use it as described above in section 6, and/or for as long as We have your permission to keep it.
- Some or all of your data may be stored outside of the European Economic Area (“the EEA”) (The EEA consists of all EU member states, plus Norway, Iceland, and Liechtenstein). You are deemed to accept and agree to this by using our site and submitting information to Us. If we do store data outside the EEA, we will take all reasonable steps to ensure that your data is treated as safely and securely as it would be within the UK and under the GDPR
- Data security is very important to Us, and to protect your data We have taken suitable measures to safeguard and secure data collected through Our Site.
- Do We Share Your Data?
- We may share your data with other partner companies in for the purpose of supplying products or services you have requested.
- We may sometimes contract with third parties to supply products and services to you on Our behalf. Where any of your data is required for such a purpose, We will take all reasonable steps to ensure that your data will be handled safely, securely, and in accordance with your rights, Our obligations, and the obligations of the third party under the law.
- We may compile statistics about the use of Our Site including data on traffic, usage patterns, user numbers, sales, and other information. All such data will be anonymised and will not include any personally identifying data, or any anonymised data that can be combined with other data and used to identify you. We may from time to time share such data with third parties such as prospective investors, affiliates, partners, and advertisers. Data will only be shared and used within the bounds of the law.
- In certain circumstances, We may be legally required to share certain data held by Us, which may include your personal data, for example, where We are involved in legal proceedings, where We are complying with legal requirements, a court order, or a governmental authority.
- What Happens If Our Business Changes Hands?
- How Can You Control Your Data?
- In addition to your rights under the GDPR, set out in section 4, we aim to give you strong controls on Our use of your data for direct marketing purposes including the ability to opt-out of receiving emails from Us which you may do by unsubscribing using the links provided in Our emails.
- Your Right to Withhold Information
- You may access certain areas of Our Site without providing any data at all. However, to use all features and functions available on Our Site you may be required to submit or allow for the collection of certain data.
- How Can You Access Your Data?
You have the right to ask for a copy of any of your personal data held by Us (where such data is held). Under the GDPR, no fee is payable and We will provide any and all information in response to your request free of charge. Please contact Us for more details at email@example.com, or using the contact details below in section 14.
- All Cookies used by and on Our Site are used in accordance with current Cookie Law.
- Before Cookies are placed on your computer or device, you will be shown a cookie prompt requesting your consent to set those Cookies. By giving your consent to the placing of Cookies you are enabling Us to provide the best possible experience and service to you. You may, if you wish, deny consent to the placing of Cookies; however certain features of Our Site may not function fully or as intended. You will be given the opportunity to allow only first party Cookies and block third party Cookies.
- Certain features of Our Site depend on Cookies to function. Cookie Law deems these Cookies to be “strictly necessary”. These Cookies are shown below in section 13.5. Your consent will not be sought to place these Cookies, but it is still important that you are aware of them. You may still block these Cookies by changing your internet browser’s settings as detailed below in section 13.9, but please be aware that Our Site may not work properly if you do so. We have taken great care to ensure that your privacy is not at risk by allowing them.
- The following first party Cookies may be placed on your computer or device:
|Name of Cookie
||Used only to collect performance data, with any identifiable data obfuscated
||This cookie is strictly necessary for Cloudflare's security features and cannot be turned off.
- Our Site uses analytics services provided by Google Analytics and Facebook. Website analytics refers to a set of tools used to collect and analyse anonymous usage information, enabling Us to better understand how Our Site is used. This, in turn, enables Us to improve Our Site and the products AND/OR services offered through it. You do not have to allow Us to use these Cookies, however whilst Our use of them does not pose any risk to your privacy or your safe use of Our Site, it does enable Us to continually improve Our Site, making it a better and more useful experience for you.
- The analytics service(s) used by Our Site use(s) Cookies to gather the required information.
- The analytics service(s) used by Our Site use(s) the following Cookies:
|Name of Cookie
||First / Third Party
|__utma, __utmb, __utmc, __utmt, __utmz
||Helps to understand how their visitors engage with our website
||Helps to understand how their visitors engage with our website
- In addition to the controls that We provide, you can choose to enable or disable Cookies in your internet browser. Most internet browsers also enable you to choose whether you wish to disable all cookies or only third party cookies. By default, most internet browsers accept Cookies but this can be changed. For further details, please consult the help menu in your internet browser or the documentation that came with your device.
- You can choose to delete Cookies on your computer or device at any time, however you may lose any information that enables you to access Our Site more quickly and efficiently including, but not limited to, login and personalisation settings.
- It is recommended that you keep your internet browser and operating system up-to-date and that you consult the help and guidance provided by the developer of your internet browser and manufacturer of your computer or device if you are unsure about adjusting your privacy settings.
- Contacting Us
Mark Alexander - Founder of Property118
9:46 AM, 11th November 2014, About 9 years ago
Hi Stuart and welcome to Property118.
Based on what you have explained, my answer is YES, I do think a limited company structure would be best suited to your business model.
I rarely, if ever, recommend incorporation to landlords who want to buy, hold and rent property as an investment but for short term strategies such as trading, flipping and development there are several advantages.
Don't take my word for it though, I'm not insured to provide tax advice, but this man is >>> http://www.property118.com/member/?id=452
13:07 PM, 11th November 2014, About 9 years ago
Check out Carl Bayley's Using a Property Company To Save Tax (Tax Café), which is updated annually. Limited companies offer few advantages if you are a buy-and-hold landlord or if you are speculating on price movements whilst doing very little actual work on the properties, but there are plenty of advantages if you are effectively a small developer. It is also possible to operate a "hybrid" company that has some rental properties but at least 50% of its activities relates to renovation/new-build development.
As regards the property you are just in the process of buying, there is no need for it to be formally transferred to company ownership at the Land Registry. You simply write a letter, witnessed by your solicitor, saying that you are buying the property "on behalf of" the company. The purchase cost is treated as a Director's Loan by you to the company, which can be repaid later when the company has the funds; the property is recorded on the company accounts as an Asset. You can run a Director's Loan to your company for years and even charge it an appropriate rate of interest (declaring the income on your personal tax returns, of course). You then put all the renovation costs and company-admin costs through the business, and hopefully sell at a profit, using the returned capital to buy your next property.
The reason for retaining each property in your own name is that it is far easier to secure (buy-to-let) mortgage loans. It will be next-to-impossible to obtain a mortgage for your company for at least three years, especially since it sounds like most of your income will be paid by the company.
As regards income, don't forget that the company can also pay you a director's salary for your admin time, in addition to your carpentry work. However, it is tax-efficient to keep your taxable income (income tax and NI) as low as possible, and top up your income by paying yourself dividends on your company profits. You will endure 20% corporation tax on your profits before you can pay yourself a dividend - and you must be able to demonstrate you have profits, as far too many small business owners are tempted to keep taking out money from their business when they feel like it, without the profits to justify this - so there's no saving on 20% personal income tax, but at least you won't be paying NI. Of course it does help to pay some NI, to build up your state pension entitlement.
When you set up the company, consider creating two classes of shares: one for Directors and one for investors. You could have 100 Class A shares for directors, and Class B shares issued on a 1 per £1 invested basis. This makes it easier to distinguish between dividends for each class of share, in case in the future someone wants to invest in your company. Development is very capital-intensive, and you may find, as you gain experience, that you really want to gear up and even try new-build, and this will require capital resources that are greater than you have or a bank is prepared to lend.
21:29 PM, 11th November 2014, About 9 years ago
Reply to the comment left by "Tony Atkins" at "11/11/2014 - 13:07":
Thank You Tony.
Funnily enough, I ordered Carl Bayley's book a few days ago, awaiting delivery, should be a good read!
For the property I am in the process of buying (completion is next week) you advised writing a letter, witnessed by my solicitor that I am purchasing on behalf of a company. Will it matter that the new company won't be set up by then? I have a preferred company name which is currently available.
What would be a ball park cost of setting up such a company, and likely accounting cost each year?
Mark Alexander - Founder of Property118
21:46 PM, 11th November 2014, About 9 years ago
Reply to the comment left by "Edie May" at "11/11/2014 - 21:29":
My accountant offers same day service for company formations, ongoing costs are quoted individually based on the business requirements - see >>> http://www.property118.com/member/?id=452
15:12 PM, 13th November 2014, About 9 years ago
Reply to the comment left by "Edie May" at "11/11/2014 - 21:29":
No, it won't matter: you are just engaging in pre-incorporation activities by buying the house. Once the company is set up, book all the purchase costs to the company as part of your initial Director's Loan, and book the house as the company's starting assets, again via a Loan from you.
I've no idea on costs: maybe £250 to set up and £750 for doing the books. It would probably to pay the accountant extra to have ongoing advice, as you are bound to want to ask about things as you go along.
13:39 PM, 17th November 2014, About 9 years ago
"I believe being a Ltd company will be advantageous in my situation, because I am reinvesting profits and only want a wage for the work I do on the properties"
How about you buy and own the properties as an individual. But you give all the doing up work / management to your own LTD Company who invoice you every month. The Ltd Company pays you a monthly wage for this.
As far as I know (and I'm not an expert) a Ltd Co selling property that has increased in value will pay more tax than an individual as it has no cgt exemption.
21:51 PM, 3rd December 2014, About 9 years ago
From my understanding (having read Carl Bayley's book and had some advice from him too), Steve's suggestion that a Ltd company selling a property that has increased in value will pay more tax than an individual is definitely wrong. If you are classed by HMRC as a developer, ie buy, refurb, sell, and you do so as an individual, then you pay tax on the profit of the sale. As in, you pay income tax, not CGT. And you also have to pay national insurance too. So you may be paying 50-60% tax on the profit from the sale. That is why, if you are buying, refurbing and selling, then it can make sense to do it via a ltd company and pay 20% corp tax. But it also depends on whether you want to take the profits out of the company, what if any other employment you have, and hoe you are financing. Definitely recommend the book (and the advice I received!). The book even has tables showing the break even point for various situations and profit levels whether it is best as individual v. Ltd company.
9:44 AM, 4th December 2014, About 9 years ago
Reply to the comment left by "Steve Gracey" at "17/11/2014 - 13:39":
Steve - I agree with Vanessa. I'm no expert either, but I've read Carl Bayley's book carefully and the case for putting development work through a company is clear-cut.
You will always pay more tax if you rent or develop property on a personal basis, because as Vanessa says, you will have to pay tax at income tax and NI rates on your profits. So if you make £100,000 annual profit on top of a salary, you will be paying 40% and 45% income tax on most of this profit, plus NI.
Compare this with paying 20% corporation tax through a company and there is no comparison. Limited companies don't pay CGT: only individuals do, or self-employed sole traders or partnerships. See https://www.gov.uk/capital-gains-tax-businesses/what-you-pay-it-on.
It is far more tax-efficient for individuals doing renovation or new-build to go through a limited company. It is also possible to hold rental property within a development company, provided it does not take up over 50% of the turnover and you can clearly demonstrate you are "trading" rather than "investing". There can be a saving here too when you come to sell a rental property, because the company only pays corporation tax, whereas politicians keep fiddling around with personal CGT rates and bands.
17:57 PM, 4th December 2014, About 9 years ago
Thanks for the comments. I've now read Carl Bayleys book and its reassuring that the comments on here tie in with my own understanding of the situation.
Its time to get it all set up now!
0:38 AM, 5th December 2014, About 9 years ago
Reply to the comment left by "Tony Atkins" at "13/11/2014 - 15:12":
Setting up a limited company costs around £35. Get quotes first, accountants charge a fortune