UK Landlord Forum / Life

Hi Folks

I own a few buy to let properties and thinking of forming a company.  Has anyone done that before?
What things to I need to consider before deciding to form a company?
Would I need financial/legal advice in order to make my decision?

Could someone recommend any online finance/legal advice?

Thanks in advance for your responses.

I went on a tax course for Landlords and this was one of the topics. It depends on individual portfoli0s obviously and not straightforward - there are many things to consider so yes, you would need professional advice from both financial and legal sides (these processes alone could make it too costly to start off for many people).

Thanks eps501

My partner and I have quite a few buy-to-lets and formed a Ltd company in 2016.

We got ourselves an accountant, who pretty much keeps us on track, but other than that have taken no other advice.

Thanks Wendy

My accountant helped me set one up, as an SPV - property vehicle for specifically purchasing & letting property, Im still on the learning curve but tax-wise its seemingly the best option as the government is set to throttle landlords financially over the next few years.

Thanks BKR

If the Government intends to "throttle" Landlords do you really think the umbrella of a company is going to be a workable hiding place? Of course not. There are pros and cons to holding property personally and via a company. There is certainly no one-size-fits-all. If you have started-out by owning property as an individual and letting out there could be prohibitive costs in transferring and the answer to the most important question - in my view - is = yes, you should take appropriate financial advice before forming and transferring.

Just as a complete aside, a ramble really, I am a Director of a Company that manages a freehold. We have no employees, we make no products, we sell nothing. I managed to get an exemption for 5 years from HMRC for submitting tax returns - that was nice, they were reasonable, based on the fact we were considered, effectively, dormant. Sensible decision. After that I wanted to do something similar with Companies House - I have met intransigent people in my time - but those people really took the biscuit. For this dormant entity I still need to submit various pieces of information (that never changes and is of no value to anyone) annually, navigating their obscure and archaic website to fulfil their requirements of a tick in the box - and paying £13 for the privilege - otherwise they'll fine me; oh, they love to send me letters threatening fines. I'm dead against being involved in a Company. I also think because I am listed as a Director of this non-Company I end up with more junk mail than I should - I often get junk letters offering the Company (not me) credit cards!!! I have had someone thinking I own a fleet of vehicles. I have other property investors seeing I own a freehold and offering me first-dibs at buying 14 flats in Leeds, for circa £2,000,000.

My rant is over. Until next time...