Cashmere Solo
Registered User
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- 18
Yes, neither own time, own labour, nor mileage can be claimed.Update: Do you mean that you cannot charge for your own time in fixing properties?
Hi BrendanCashmere
I am not sure what your problem is?
If I run a corner shop, I have revenue and costs. The difference is the profit which makes me a professional shopkeeper.
If I own 50 properties, I will have rental income and costs. The difference is the profit which should be enough to make me a professional landlord.
The term "professional" probably doesn't have any significance here. It just means that it is my main income.
if you rent 50 properties, almost all of your administrative costs are disallowed.
Yes.Hadn't realised that.
If I have a company with 50 properties and employ two staff to run them, are the costs of the staff disallowed?
As I understand it, pretty much everything apart from the above outside the normal few expense item categories that every landlord can claim.I assume not. So what sort of admin costs are disallowed that one might expect to be allowed?
That was my initial question - could I set up as a business and make this my fulltime occupation - it looks like the answer is no
An accountant isn't needed to answer the questions that @Brendan Burgess is posing. A casual examination of the figures would suffice.Would an accountant have the answers?
Can you explain that please?You will pay 45% Corporation Tax on the remainder
The examples relate to companies as there are very few corner shop chains operating as sole traders.Can you explain that please?
How is a private individual liable for Corporation Tax?
How come the rate is 45%?The examples relate to companies as there are very few corner shop chains operating as sole traders.
25% Corporation Tax rate on investment income, plus 20% close company surcharge on investment income.How come the rate is 45%?
Folks thanks for the replies, lately I find that I am spending time at evenings and week-ends doing loads of odd jobs and prepping houses for the Council Inspections. I do enjoy the work and maintain the properties to a high standard, but I dont think that I could earn a wage from it if I were to retire early from my current job. That was my initial question - could I set up as a business and make this my fulltime occupation - it looks like the answer is no
This is completely wrong.If your goal is is accumulate wealth, but not draw it down, then there are benefits to starting a company and keeping the properties in there and allowing the money to build up as you flip the properties or build up money from rent. You will pay circa 25% tax in this instance. However, if you have them in a company and wish to draw down a wage, you will have to pay corporation tax of circa 25% and then income tax on top of that to draw a wage from it. Which doesn't make economic sense.
Please elaborateThis is completely wrong.
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