Hi simon, awesome vedio. A question if u don't mind Simon, I thought the dividend allowance is only £2000 , and you r saying " use the rest of the personal tax allowance for dividends and then add the £ 2000 free tax dividends ? So we will have more than £5000 dividends tax free , am I right? Another question , don't we pay NIC on dividends? Obviously we pay tax on dividends after the allowance but what about NIC ?
No NIC in dividends. The £2k dividend allowance is indeed in top of the personal allowance meaning that more dividends may be taken up to these amounts. This is provided that the personal allowances have not been used up elsewhere
Sadly there are no magic bullets when it comes attack structures. I need to take some professional advice to understand your situation and the situation of your family
Sadly there are no magic bullets when it comes attack structures. I need to take some professional advice to understand your situation and the situation of your family
Can I claim mileage against my Ltd company, for property related journeys, if I use a vehicle belonging to my paid employers company which I pay as a benefit in kind through PAYE, or must the vehicle be in my name? I hope that makes sense!
@@UK-Property-Tax-Accountants Thank you for your prompt response. I love your page as it is full of great content for us non-accountants. Just out of interest do you operate operate in Scotland? I know the rules can be slightly different.
Hi Simon, your videos are great. My business partner and I are non UK resident and have just formed company A for buying our second property. While we are preparing for the third one, he suggests we should form company B to hold the third one (for the adv of SDLT when disposing), and a holding company to hold both company A and B and other SPV in future. Could you advise if this is a good idea to do so in the UK? Thanks
To be fair I cannot comment on what someone else suggested as that would be wrong for me to do without understanding their reasoning. I am not sure what is meant by the SDLT as this is paid when you buy a property. You would not pay SDLT if you transfer properties from one holding company to another. It might be worth you booking a tax consultation with us to go through the details.
Thank you Simon for a great video my husband & I are considering setting up a company for our properties as we plan to buy more but at the moment the rent we use to pay our own bills etc as well as the property expenses so if we have a company can we take out all the rent each month? Also if there’s no money left in company will it qualify for future mortgages? Thanks
This is a great question. You do need to get some tax advice because the money that’s in the company belongs to the company. The moment that you take money out of the limited company could render an income tax liability on you or whoever takes money out.
I would suggest that you watched the property expert panel which is the first Monday of every month at 7 pm GMT. We have a mortgage broker on there and you can post that question to him and get the right answer. I by no means am I mortgage broker or a finance specialist in this area
Great videos you do! If my wife and I create a limited company to buy a property (licensed HMO), is it possible to have only my wife listed on the mortgage? And, I can still enjoy benefits from the rental income, such as dividends, salary, vouchers, etc?
You can either claim car expenses (receipts) or mileage. If you claim receipts basis via a company you need to be careful Yat you are not creating a benefit in kind charge You need to think about the % split between personal and business if you use receipts basis if you claim against your personal self assessment I personally claim mileage rates
Great content. Just started watching your videos. I have a question, could I charge for mileage if I was travelling to view a potential property the company may purchase? Thanks
@@UK-Property-Tax-Accountants Thanks for the prompt reply. Another thing I can't find the answer to online is it usual practice in investment LTD co if I had numerous directors appointed (family members) all withdrawing profits via the tax free method in this video, they are all shareholders in the company. Cheers
Hello Simon, I thought trivial benefits were capped at £300, or does it get doubled if you are a payrolled director of your company? Thanks, great videos!
where i have a rundown property&land, planning to build 2 properties. i decide to sell one of the properties and keep the other. there will be no mortgage, whats best to do continue to keep within Lt/pay rent or sell back to myself?
I would not take tax advise via RUclips on this very important issue. You really do need to invest time and money to make the right business and tax decision
Hi Simon, currently I'm self employed, is it best to open up a company and pay me a set wage through that then take dividend in order to get a better mortgage as I've not been self employed for long?
To be honest this is more of a question for a mortgage broker. I can advise you on tax but not mortgages and the criteria lending used by bank, sorry that I cannot be of greater use.
Hi Simon, really helpful video thankyou. Just one selfish question if I may. I was made redundant in January and was offered a 3 month contract and had to quickly set up a Ltd company. I was paid into my business bank account for the 3 months (april/may/june) transferring around 2/3s of it into my personal bank to live on. I have since started a permanent job and would like to do all the filing and tax paying to see if there is any extra cash for me 1/3 left of the 3 months pay I have saved to cover the tax. My question is - Can I pay myself as the director in retrospect, on paper even though the actual money is long gone? and is this done through PAYE? I was paid around 8500 over 3 months and now work full time so I'm confused as to how to do the accounts for the year. Much Appreciated!
@@UK-Property-Tax-Accountants Hi thanks for your swift reply! Yes I submitted an invoice each month for the number of days x my daily rate. I have 3 invoices for work done march, april, and may and received the payments april, may, june Thankyou so much!
@@AdamBowen92 In that case the company will do a year end and you will close it down once the tax has been paid. As you have already taken the money out of the account I would almost certainly treat this as dividends at the year end. In the meantime, you would call it a directors loan account. I would almost certainly say that a case consult is required here as we could go on all day with different connotations.
Hi Simon, regarding the £50 voucher every month is that still current? Because I heard someone else recently say it is every 6 weeks. Regarding transportation can I claim back if I use public transport instead of driving? Because I don’t drive at the moment. Finally the £150 celebration can you pay it directly to yourself or does it have to be spent at a venue? Many thanks.
The £50 is the individual domination. As long as you do not exceed £300 per annum as a director then there are no tax issues. In regards to the celebration it is a company cost and should be paid to the venue, else HMRC would see the payment to you as taxable income
Hi Simon, I'm not in the property business, but still running a ltd company for recruitment. (I am the sole director/employee) Out of interest; if a client was to pay, say a £25K invoice and it landed 1st of March, how quickly would I be able to withdraw money to my personal account and would I be able to use this method ad-hoc as and when an invoice comes or do i have to wait until April? Thanks
You can take the money out immediately. If at the end of the year you have an overdrawn director s loan account (money you owe to the company) then you would declare them as dividends
Hi ,thanks for very informal video . i just set up my limited company as single director in November 2019, and started to receive income from January, can i pay myself a wage of £8600 and £2000 dividends this tax year (up to April 5th) and then revert to £719 monthly. I am earned from self employment 15k this tax year already. Is this will be ok with HMRC?
Yes that will be fine but...you would need to start payroll if you pay yourself more than circa £5,800 Pay yourself this amount plus dividends if your company has made £2,000 or more post tax profits
I am an expat in UAE, can I pay myself a tax free salary from my UK property company? If so, does there need to be cash in the business or can I add it to my directors loan account?
I personally would face salary paid into your bank account to show HMRC the actual transaction. You can then pay lump sums back into the bank account as a directors loan account
I have a question, Let's say I have 10K and my personal account and I register a company to trade with. I then buy 10K worth of goods and sell them for 20K. I now have 20K in my business account while 10K comes from my personal account. I assume this 10K is considered as my investment but what happens to it? Can I somehow take it back without having to pay as dividend or wages. I can't figure out if that 10K is for example personal saving which was used to start a company why can I not take it back?
Hi i have just started my limited company . Do i have to register for PAYE so i can get paid as a director ? your time is much appriciated , many thanks :)
Very blessed for this video. I have a listed company which brings in £1300 weekly. This is my only source of income. How do I take money out in a weekly basis.
Hi can I have a little advise please . I have just invested in an armchair franchise Total investment £28500 plus vat £5700 total £34200 It a guaranteed return of £800 per month How should I pay myself as I want to make NI contributions I have no other job or income Thank you for any advice Sean Bray D
2 questions. 1. If your net profit is say £300k and you wanted to extract £150k would you end up losing 45% of that? 2. If you want to invest some money in shares what sort of tax do you have to pay? I guess overall I'm asking is there an advantage in having a ltd company for property vs owning the property yourself with these numbers and intentions? Thanks
The key benefits of a limited company or that you are only tax personally when you extract the money out of it If you used the money to reinvest inside the limited company, no personal tax would be due. This is an immediate tax saving compare to holding property is in your name.
Hi Simon, all your videos are awesome. My wife (non-British and non-UK tax payer) and I (British citizen /expat) are living outside of UK but she holds 100% class A shares and I hold 100% class B shares of our company (to hold HMOs). I am currently a UK tax payer. IS it possible for our company to distribute 100% of its after tax profits to my wife tax free of UK tax? Thanks so much.
Can you set class a&b structure up after you have already incorporated a company? We set a company up a while ago but it has been dormant. We are now looking to loan money to the company to buy a property, would we use a debenture with fixed charge over property?
Optimise - UK Property Tax Specialists have you got an e-mail so i can send you 1 e-mail of a list i have worked out it may be wrong i start my Limited company Next week
@@jack-paulwright2899 You can always book a tax call with us using the code RUclips25 and the url is: optimiseaccountantsltd.as.me/optimiseaccountantstaxconsultation
If I am a low income tax payer would I effectively be saving 20% on each of these things? So if I get £50 amazon vouchers per month will the true cost to me be £40... therefore in one year saving £120 in tax?
Amazing summary Simon! I'm becoming a fan of your videos!! Keep doing them.
Thank you that is very much appreciated
All your videos are so helpful, thanks so much
You are very welcome and I am pleased that they are helpful
This kind of message always gives me incentive to make new videos in the future
Yes, great simple explanation
Thank you Ian, most kind
Hope you are well and having a fab weekend.
Hi simon, awesome vedio. A question if u don't mind Simon, I thought the dividend allowance is only £2000 , and you r saying " use the rest of the personal tax allowance for dividends and then add the £ 2000 free tax dividends ? So we will have more than £5000 dividends tax free , am I right?
Another question , don't we pay NIC on dividends? Obviously we pay tax on dividends after the allowance but what about NIC ?
No NIC in dividends.
The £2k dividend allowance is indeed in top of the personal allowance meaning that more dividends may be taken up to these amounts. This is provided that the personal allowances have not been used up elsewhere
What the best way u can structure ur company❤
Sadly there are no magic bullets when it comes attack structures. I need to take some professional advice to understand your situation and the situation of your family
Sadly there are no magic bullets when it comes attack structures. I need to take some professional advice to understand your situation and the situation of your family
Very informative
What's the system at 10:34 please?
www.perkbox.com/uk/campaign/sem/platform?.e&Brd_UK_E_Perkbox-Only&_bt=540615833949&_bk=perkbox&_bm=e&_bn=g&_bg=10690393794&gclid=Cj0KCQjw5oiMBhDtARIsAJi0qk2iKmzziyJStCgNTIwNqr6X_QLPNUMqyqtts8R48uH3ysQzf8Mya8oaAs5eEALw_wcB
I need you in my life sir. You are a God send
Thank you that is most appreciated 🤘
Can I claim mileage against my Ltd company, for property related journeys, if I use a vehicle belonging to my paid employers company which I pay as a benefit in kind through PAYE, or must the vehicle be in my name? I hope that makes sense!
Yes as it is a genuine business expense
@@UK-Property-Tax-Accountants Thank you for your prompt response. I love your page as it is full of great content for us non-accountants. Just out of interest do you operate operate in Scotland? I know the rules can be slightly different.
Sadly not and I would suggest that you only work with accounts that are based on Scotland as the rules are very different now
@@UK-Property-Tax-Accountants That's a pity! However, I will continue to tune in to your content for guidance. Thanks
Hi Simon, your videos are great.
My business partner and I are non UK resident and have just formed company A for buying our second property. While we are preparing for the third one, he suggests we should form company B to hold the third one (for the adv of SDLT when disposing), and a holding company to hold both company A and B and other SPV in future. Could you advise if this is a good idea to do so in the UK? Thanks
To be fair I cannot comment on what someone else suggested as that would be wrong for me to do without understanding their reasoning. I am not sure what is meant by the SDLT as this is paid when you buy a property. You would not pay SDLT if you transfer properties from one holding company to another. It might be worth you booking a tax consultation with us to go through the details.
Thank you Simon for a great video my husband & I are considering setting up a company for our properties as we plan to buy more but at the moment the rent we use to pay our own bills etc as well as the property expenses so if we have a company can we take out all the rent each month? Also if there’s no money left in company will it qualify for future mortgages? Thanks
This is a great question. You do need to get some tax advice because the money that’s in the company belongs to the company. The moment that you take money out of the limited company could render an income tax liability on you or whoever takes money out.
I would suggest that you watched the property expert panel which is the first Monday of every month at 7 pm GMT. We have a mortgage broker on there and you can post that question to him and get the right answer. I by no means am I mortgage broker or a finance specialist in this area
Great videos you do!
If my wife and I create a limited company to buy a property (licensed HMO), is it possible to have only my wife listed on the mortgage? And, I can still enjoy benefits from the rental income, such as dividends, salary, vouchers, etc?
The company would be the mortgagee rather than the owners.
You can use share structure for you both to take income out of the company to meet your needs
I claim for petrol receipts as expenses. is claim mileage different to this?
You can either claim car expenses (receipts) or mileage. If you claim receipts basis via a company you need to be careful Yat you are not creating a benefit in kind charge
You need to think about the % split between personal and business if you use receipts basis if you claim against your personal self assessment
I personally claim mileage rates
Is the first example meaning that you can get up to £14500 out per annum?
Correct. We have now worked out how to take out a lot more for some of our clients too, but that is because we know about their personal circumstances
Great content. Just started watching your videos. I have a question, could I charge for mileage if I was travelling to view a potential property the company may purchase? Thanks
I personally would say so given you are running a property business.
@@UK-Property-Tax-Accountants Thanks for the prompt reply. Another thing I can't find the answer to online is it usual practice in investment LTD co if I had numerous directors appointed (family members) all withdrawing profits via the tax free method in this video, they are all shareholders in the company. Cheers
With good reason to be fair. It is a complex area so a short simple video would be too difficult
Great video. Can you pay gym membership out of the ltd company?
Yes you can expense it but
- you pay income tax
- company pays 13.8% NI
- you submit a P11D
Why does the income tax come into it ? Is it cheaper for your company to pay for it rather than yourself?
Hello Simon, I thought trivial benefits were capped at £300, or does it get doubled if you are a payrolled director of your company? Thanks, great videos!
No limits at all for employees. I use the £600 for Husbands/wives.
Can i make my hairsdressing self employed business as a limited liability company?
Yes you certainly could
@@UK-Property-Tax-Accountants oh wow thankyou thats amazing.
You are welcome
where i have a rundown property&land, planning to build 2 properties. i decide to sell one of the properties and keep the other. there will be no mortgage, whats best to do continue to keep within Lt/pay rent or sell back to myself?
I would not take tax advise via RUclips on this very important issue. You really do need to invest time and money to make the right business and tax decision
Hi Simon, currently I'm self employed, is it best to open up a company and pay me a set wage through that then take dividend in order to get a better mortgage as I've not been self employed for long?
To be honest this is more of a question for a mortgage broker. I can advise you on tax but not mortgages and the criteria lending used by bank, sorry that I cannot be of greater use.
Does this apply to every company i.e. as a director of 3 companies can I take £50 voucher against each ?
I would say not as it is a personal tax implication
Hi Simon, really helpful video thankyou. Just one selfish question if I may. I was made redundant in January and was offered a 3 month contract and had to quickly set up a Ltd company. I was paid into my business bank account for the 3 months (april/may/june) transferring around 2/3s of it into my personal bank to live on. I have since started a permanent job and would like to do all the filing and tax paying to see if there is any extra cash for me 1/3 left of the 3 months pay I have saved to cover the tax.
My question is - Can I pay myself as the director in retrospect, on paper even though the actual money is long gone? and is this done through PAYE?
I was paid around 8500 over 3 months and now work full time so I'm confused as to how to do the accounts for the year.
Much Appreciated!
Did your limited company send an invoice to the supplier?
Did you have a contract in place that shows your company name and their company name?
@@UK-Property-Tax-Accountants Hi thanks for your swift reply! Yes I submitted an invoice each month for the number of days x my daily rate. I have 3 invoices for work done march, april, and may and received the payments april, may, june
Thankyou so much!
@@AdamBowen92 In that case the company will do a year end and you will close it down once the tax has been paid. As you have already taken the money out of the account I would almost certainly treat this as dividends at the year end. In the meantime, you would call it a directors loan account. I would almost certainly say that a case consult is required here as we could go on all day with different connotations.
Hi Simon, regarding the £50 voucher every month is that still current? Because I heard someone else recently say it is every 6 weeks. Regarding transportation can I claim back if I use public transport instead of driving? Because I don’t drive at the moment. Finally the £150 celebration can you pay it directly to yourself or does it have to be spent at a venue? Many thanks.
The £50 is the individual domination. As long as you do not exceed £300 per annum as a director then there are no tax issues.
In regards to the celebration it is a company cost and should be paid to the venue, else HMRC would see the payment to you as taxable income
Yes. 25000 to my pension. No taxes at all are paid (corporation tax or NI)
Great result 👍
Hi Simon, I'm not in the property business, but still running a ltd company for recruitment. (I am the sole director/employee)
Out of interest; if a client was to pay, say a £25K invoice and it landed 1st of March, how quickly would I be able to withdraw money to my personal account and would I be able to use this method ad-hoc as and when an invoice comes or do i have to wait until April?
Thanks
You can take the money out immediately. If at the end of the year you have an overdrawn director s loan account (money you owe to the company) then you would declare them as dividends
Great video, audio is not as clear as it code be, bit boomy. otherwise great content
I agree the audio converter was rubbish that day
Hi ,thanks for very informal video . i just set up my limited company as single director in November 2019, and started to receive income from January, can i pay myself a wage of £8600 and £2000 dividends this tax year (up to April 5th) and then revert to £719 monthly. I am earned from self employment 15k this tax year already. Is this will be ok with HMRC?
Yes that will be fine but...you would need to start payroll if you pay yourself more than circa £5,800 Pay yourself this amount plus dividends if your company has made £2,000 or more post tax profits
How can I contact you ?
You can book a sales call to discuss our services or book a tax call via www.optimiseaccountants.co.uk
I am an expat in UAE, can I pay myself a tax free salary from my UK property company? If so, does there need to be cash in the business or can I add it to my directors loan account?
I personally would face salary paid into your bank account to show HMRC the actual transaction. You can then pay lump sums back into the bank account as a directors loan account
I have a question,
Let's say I have 10K and my personal account and I register a company to trade with. I then buy 10K worth of goods and sell them for 20K. I now have 20K in my business account while 10K comes from my personal account. I assume this 10K is considered as my investment but what happens to it? Can I somehow take it back without having to pay as dividend or wages. I can't figure out if that 10K is for example personal saving which was used to start a company why can I not take it back?
Great question but to be honest a little too detailed for me to answer here
How about air tickets sir?
Potentially allowable if you visit a property or you actually buy a property
hey simon, i checked gov website scotland, it says for vouchers you can only give 1 per employee annually is that just england or a mistake? cheers
You can give as many as you like in England
Hi i have just started my limited company . Do i have to register for PAYE so i can get paid as a director ? your time is much appriciated , many thanks :)
You only need to register with HMRC for PAYE purposes if you pay yourself above £5824
Very blessed for this video. I have a listed company which brings in £1300 weekly. This is my only source of income. How do I take money out in a weekly basis.
This is the best video to watch
ruclips.net/video/n3StgnJtIW0/видео.html
Hi can I have a little advise please .
I have just invested in an armchair franchise
Total investment £28500 plus vat £5700 total £34200
It a guaranteed return of £800 per month
How should I pay myself as I want to make NI contributions
I have no other job or income
Thank you for any advice
Sean Bray
D
2 questions. 1. If your net profit is say £300k and you wanted to extract £150k would you end up losing 45% of that? 2. If you want to invest some money in shares what sort of tax do you have to pay? I guess overall I'm asking is there an advantage in having a ltd company for property vs owning the property yourself with these numbers and intentions? Thanks
The key benefits of a limited company or that you are only tax personally when you extract the money out of it
If you used the money to reinvest inside the limited company, no personal tax would be due. This is an immediate tax saving compare to holding property is in your name.
U r great .
From sweet pakistan.😍
Hi Simon, all your videos are awesome. My wife (non-British and non-UK tax payer) and I (British citizen /expat) are living outside of UK but she holds 100% class A shares and I hold 100% class B shares of our company (to hold HMOs). I am currently a UK tax payer. IS it possible for our company to distribute 100% of its after tax profits to my wife tax free of UK tax? Thanks so much.
Yes it is. Please see my other reply as it is very much related.
@@UK-Property-Tax-Accountants Where is your other reply please?
It is possible given that you have different share classes. A great tax plan
Can you set class a&b structure up after you have already incorporated a company? We set a company up a while ago but it has been dormant. We are now looking to loan money to the company to buy a property, would we use a debenture with fixed charge over property?
If you’re a delivery driver can you join the gym as a business expense as you need to stay fit !!
Yes you can go to the gym but it won’t be a business expense sadly
Optimise - UK Property Tax Specialists have you got an e-mail so i can send you 1 e-mail of a list i have worked out it may be wrong i start my
Limited company
Next week
@@jack-paulwright2899 You can always book a tax call with us using the code RUclips25 and the url is: optimiseaccountantsltd.as.me/optimiseaccountantstaxconsultation
If I am a low income tax payer would I effectively be saving 20% on each of these things? So if I get £50 amazon vouchers per month will the true cost to me be £40... therefore in one year saving £120 in tax?
There are no tax liabilities with the things I have mentioned. That said the company does have a cost and therefore less tax to pay