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3 reasons to set up LTD company for buy-to-let properties | Money Matters | Touchstone Education - YouTube
Channel: Touchstone Education
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welcome to many matters today I want to
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talk to you about buying property into a
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company
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[Music]
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most people think this is really
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complicated so they don't do it and they
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buy property into their personal name
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now having the house that you live in in
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your personal name that's fine but
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having investment property in your
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personal name isn't really that great so
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the reasons why I like buying into a
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company number one it's very easy and
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simple to do and you open your company
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on Companies House your company is a
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bank account and then when you go and
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offer on a property instead of offering
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and giving your personal details you
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tell them the company's details and then
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you get the finance for the property
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through the company very simple and
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straightforward the second reason why I
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like this is because it cuts out section
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24 so as a landlord if you own property
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in your personal name and you're you
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will get hit by the twin section 24
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taxes if you've got a company it doesn't
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apply to companies so straight away you
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have a saving there now the third reason
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why I like buying property into a
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company is because like most of you I've
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got my own house my car I've got my
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children so I've got we've got my assets
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to protect and my life to protect so
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something happened to my investment
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property I wouldn't want it to affect my
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family home or what I can give to my
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children so if I bought a built property
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in my personal name it would affect if
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something happened you know they might
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come and want my my family home or it
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might affect you know my children and
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what money I've got if I buy it into the
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company
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I'm ring-fencing it in the company so it
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won't impact if something does happen or
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if there's some reason you know I can't
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pay the mortgages for them then
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properties it's really focused in the
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company so it protects me personally so
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I desperately believe that everybody
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should buy property into a company and I
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think it's the most tax efficient and
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simple thing to do and it will save you
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time one of it other reasons is I I've
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got a full-time job I love my
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job I would never give it up and I knew
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property on the side and ready to give
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me more money to live now and also more
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money for the future so I'm a 40% tax
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payer probably a bit more that I don't
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like to look but so buying property into
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a company means my company's making the
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money and means I'm personally not hit
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with that tax I've now got money in my
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company to do with what I want with so
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what I tend to do is buy more properties
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from that money which means again that
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money's not hit by any tax because I can
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just keep it in the company and buy more
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also if I wanted to take money out of
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the company I can take it out with a
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salary dividends I can claim mileage and
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I can do all that for the company which
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I can't do when I've got it personally
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but the main things you need to remember
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and what trick people up is it doesn't
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matter what your company's called you
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can go on Companies House and change at
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any time I know people that stop them
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from opening companies because they
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can't decide where it's cold just open a
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property limited or something buy it in
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the second thing you need to do is you
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need to make sure you've got insurance
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for your company so you want
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professional indemnity insurance and you
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want to speak to a good insurance broker
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who will tell you what you need for your
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company again looking after your company
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and you as director and then the third
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thing you definitely need when you open
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a company is a good bank account I've
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had very bad experiences with some
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business banks who aren't helpful and
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not helpful when you're wanting to do
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things and I tend to go for Metro banks
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these days because I think they're great
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you can get hold of them all the time
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and they give you an account manager or
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even if it's your very first business
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and you've got no money in it you get
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someone that looks after you which I
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think it's phenomenal but check out your
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banks and make sure you get a good bank
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account the main thing it's easy to
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access and easy to take screenshots of
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when you're sending things around the
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other thing that I would recommend is
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you get a really really good accountant
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now for this person they need to have
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the need to have experience in property
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and under
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how it works and all the tax benefits
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and rules that you need to play when
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doing property so I always ask my
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accountant have you got property and
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always ask to speak to one of their
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other clients to make sure they're given
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a good service because the last thing
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you want to do is be chasing your
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accountant so I with my accountant I pay
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my accountant about 100 pounds a month
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for my business they do all my accounts
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and they give me monthly management
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account reports so I can keep up to date
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on how my properties are performing and
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what cash I've got in the business this
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is all very important when you're buying
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property because you want to make sure
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the property is performing like it
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should
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you
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