Buy-to-let landlords are fighting the 利益（をあげる） squeeze - by setting up as a 商売／仕事

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Feeling the squeeze: Setting up a company to 持つ／拘留する buy-to-let 所有物／資産／財産s is not without 落し穴s

Landlords are feeling the squeeze on their 利益（をあげる）s from all 味方するs, thanks to higher mortgage 率s and a 連続する 撤退 of 税金 利益s. But a growing number are finding a way to fight 支援する ? and 上げる their 底（に届く） line.

A 記録，記録的な／記録する number of 限られた／立憲的な companies were 始める，決める up last year to 持つ／拘留する buy-to-let 所有物／資産／財産s. Landlords are choosing to 持つ／拘留する their 所有物／資産／財産s within a company structure, rather than owning them as an individual, to enjoy the 税金 利益s afforded to 限られた／立憲的な companies but not individual taxpayers.

There are now 345,426 active 限られた／立憲的な companies that 持つ／拘留する buy-to-let 所有物／資産／財産s in the UK, up 50,000 on 2022, によれば 広い地所 スパイ／執行官 Hamptons. The number has grown every ye ar since 2017.

However, setting up a company to 持つ／拘留する buy-to-let 所有物／資産／財産s is not without 落し穴s, 伴う／関わるs 複雑さ and will not save all landlords money. Here, we 調査／捜査する how you can decide if setting up a company is 価値（がある） consideration.

Why are landlords setting up as 限られた／立憲的な companies?

持つ／拘留するing 投資 所有物／資産／財産s within a company structure has always had 税金 advantages, but until 2017 buy-to-let was 一般に so profitable that few landlords bothered.

However, since then landlords have needed all the help they can get to turn a 利益（をあげる）. The first major blow （機の）カム with the introduction of いわゆる 'Section 24' in 2017, which stopped 私的な landlords from 存在 able to deduct all of their mortgage 利益／興味 and 協定 料金s from their 賃貸しの income.

Basic-率 taxpayers still get a 20 per cent credit to 適用する against mortgage 利益／興味, but higher and 付加 率 taxpayers cannot （人命などを）奪う，主張する any more of their mortgage 利益／興味 as a 商売／仕事 cost, even though they 支払う／賃金 more 税金.

However, this 十分な 税金 救済 is still 利用できる to landlords of any income who own 所有物／資産／財産 through a 限られた／立憲的な company. They can still （人命などを）奪う，主張する all these costs against income to 減ずる their 税金 法案.

JJ Mitchell, 44, who owns more than 50 所有物／資産／財産s in the West Midlands, held 所有物／資産／財産s as an individual when he bought his first in 2008, but in 最近の years switched to buying through a 限られた／立憲的な company. 'If you're going to be a 大臣の地位 landlord, or own 多重の 所有物／資産／財産s, I think a 限られた／立憲的な company is 絶対 the way to go,' he says. 'You get to put the 十分な mortgage 利益／興味 against your turnover. Using a 限られた／立憲的な company has worked 井戸／弁護士席 for me.'

会社にする／組み込むing can mean higher 利益（をあげる）s?

If you 持つ／拘留する a buy-to-let 所有物／資産／財産 as an individual, any money you receive from rent is 扱う／治療するd as income and 税金d at your ごくわずかの 税金 率.

In other words, if you are a basic 率 taxpayer, you will 支払う／賃金 税金 on it at 20 per cent; as a higher 率 taxpayer you'll 支払う／賃金 40 per cent; and 付加 率 at 45 per cent. The 税金 率s are わずかに different in Scotland.

However, if you 持つ／拘留する a buy-to-let through a 限られた／立憲的な company, any rent is 扱う／治療するd as company income and is therefore 支配する to 会社／団体 税金, after deductions such as costs and 商売／仕事 expenses. 会社／団体 税金 tends to be lower than 所得税, at 19 per cent on 利益（をあげる）s up to £50,000 and rising to 25 per cent on 利益（をあげる）s above £250,000. However, remember that if you 身を引く money from the 商売／仕事 and 支払う／賃金 it to yourself as an individual, you may have to 支払う／賃金 income or （株主への）配当 税金 on what you receive.

にもかかわらず, you are still likely to 支払う／賃金 いっそう少なく 税金 全体にわたる, as you can 支配（する）／統制する how much you 支払う／賃金 out as an income in each 税金 year to keep your 法案 in check ? and the （株主への）配当 税金 is lower than 所得税, should you 支払う／賃金 yourself that way.

The basic 率 of （株主への）配当 税金 is 8.75 per cent; higher 率 33.75 per cent; and 付加 率 39.35 per cent. There is also a （株主への）配当 allowance of £1,000, but this is 落ちるing to £500 in the 2024/25 財政上の year.

You may be able to 支払う／賃金 yourself a directors' 貸付金 from the company, which is a 税金-解放する／自由な way of 身を引くing money from the company, but this is not straightforward and ? as with most 商売／仕事 税金 決定／判定勝ち（する）s ? should be done in 協議 with an accountant. 'For most landlords buying 所有物／資産／財産 today, going through a 限られた／立憲的な company is typically advised,' says Craig Hopkins, an accountant and 創立者 of 所有物／資産／財産 Accounts, which specialises in 所有物／資産／財産 投資.

'However, a lot of people don't really understand how companies work. You 支払う／賃金 税金 on 利益（をあげる）s in the company and then you 支払う／賃金 a second level of 税金 when you take money out of the company at a personal level ? except if you are 返すing your 貸付金 account.'

Is it harder to get a mortgage?

Getting a 貸付金 to buy a 所有物／資産／財産 through a company used to be much trickier. But the number of 貸付金s 利用できる has 急に上がるd since this 戦略 started to grow in 人気.

There are 1,592 mortgage 製品s 利用できる to 限られた／立憲的な companies, compared with 567 in 2019, によれば 人物／姿／数字s from Mortgage 財政／金融 仲買人s. Around three-４半期/4分の1s of the 使用／適用s it receives are from 限られた／立憲的な companies, up from just half in 2019. 貸す人s were also hesitant to lend to companies without a 跡をつける 記録，記録的な／記録する but now landlords find it much easier to get a 貸付金 even on their first 購入（する） through a company.

You may also be able to borrow more through a 限られた／立憲的な company, says Mortgage 財政／金融 仲買人s. That is because companies are 要求するd to show the 賃貸しの income they receive is at least 125 per cent of the mortgage 支払い（額）s, compared with 145 per cent for individual 貸付金 applicants.

示す Wilkinson, 53, from Surrey, bought his first buy-to-let 所有物／資産／財産 six years ago and now owns eight 所有物／資産／財産s in South むちの跡s ? mostly three-bedroom houses. 示す, an entrepreneur, says he and his wife have 限られた／立憲的な 年金 貯金 and see 所有物／資産／財産 投資 as a way to 供給する a 退職 income. All the 所有物／資産／財産s are owned through a 限られた／立憲的な company. The cheapest price he paid for one of his three-bedroom houses was £45,000 six years ago and the most expensive was about £150,000.

He says: 'These buy-to-let 所有物／資産／財産s did 供給する us with a nice few thousand 続けざまに猛撃するs a month in income, although 明白に at the moment with 利益／興味 率s high this has gone against us.

'Rents 港／避難所't gone up in line with the rise in 利益／興味 率s. But we 計画（する） to be in it long-称する，呼ぶ／期間／用語 and the 限られた／立憲的な company structure 作品 for us. I believe I'm an 倫理的な landlord ? I don't want to sell 所有物／資産／財産s where people have made it their home.'

A 限られた／立憲的な company won't work for all landlords

There are 事例／患者s where it may make sense to still buy 所有物／資産／財産s as an individual. If you have just one or two 所有物／資産／財産s and are a basic-率 taxpayer ? and are likely to remain so even after 賃貸しの income is 追加するd to your 全体にわたる 年次の income ? a 限られた／立憲的な company may not be 価値（がある） it.

Your age will play a factor, as someone reaching 退職 age will have a higher degree of certainty over their earned and 賃貸しの income compared to a younger person who may change 職業s, careers and 税金 禁止（する）d in the years ahead. 賃貸しの 増加するs over time will also need to be factored in.

There is more 官僚主義 and 義務s with a company, such as having a separate bank account and producing 十分な statutory accounts. Accountancy 料金s for a 限られた／立憲的な company are typically more than £1,000, compared to doing your own accounts for 解放する／自由な as a 単独の 仲買人 or 雇うing an accountant for a couple of hundred 続けざまに猛撃するs.

Taking out a mortgage through a 限られた／立憲的な company is 一般に straightforward. However, 利益／興味 率s are likely to be around one 百分率 point higher than if you were taking out a buy-to-let mortgage as an individual. You may also be stung by high 料金s ? ten per cent of the 貸付金 量 in some 事例／患者s.

You may 結局最後にはーなる 支払う／賃金ing more 税金, too, if you sell a 所有物／資産／財産 and have made a large 利益（をあげる）. As an individual selling an 投資 所有物／資産／財産, you 支払う／賃金 資本／首都 伸び（る）s 税金 of 28 per cent on the difference between the 購入（する） price and sale price (after deductions such as 合法的な 料金s and 広い地所 スパイ／執行官 料金s). There is also an allowance of £6,000 per person, although this is 落ちるing to £3,000 in the 2024/5 税金 year.

資本／首都 伸び（る）s 税金 is not 告発（する），告訴（する）／料金d on 利益（をあげる） made through a company and the 資本／首都 伸び（る）s 税金 allowance does not 適用する to companies. Any 利益（をあげる） made will 苦しむ 会社／団体 税金 of at least 19 per cent 加える その上の 税金s if you 抽出する the 利益（をあげる） on sale as （株主への）配当s.

Mohammed Quadri, 46, an accountant from London, says the company structure 作品 井戸／弁護士席 for landlords, although he advises new 投資家s to consider whether 所有物／資産／財産 is 権利 for them. Even with the 利益s of owning through a company, it can be very challenging to make a 利益（をあげる）.

Mohammed owns three houses in London through a 限られた／立憲的な company, which he has owned since 2021. However, he's not sure how long he will stay in 所有物／資産／財産 投資するing because the 最近の rise in 利益／興味 率s has meant he is 現在／一般に not making any money.

'The 限られた／立憲的な company structure 申し込む／申し出s real 利益s. However, I'm thinking about whether it's 価値（がある） it long-称する，呼ぶ／期間／用語. It is やめる stressful, the 合法的な 過程 is 完全に one-味方するd に向かって tenants. Making money from buy-to-let is definitely harder than people realise,' he says.

If you are thinking of buying a 所有物／資産／財産 through a new 限られた／立憲的な company, it's 価値（がある） speaking to an accountant first. They will help you thi nk through the 重要な considerations and factors you may not have considered.

Finally, if you already have a company that you use for another 商売／仕事, it tends to be better to keep this separate from any buy-to-let 所有物／資産／財産s you own, says Ian Spreadbury, at accountancy 会社／堅い Providence 財政上の.

'It is better to keep 所有物／資産／財産 投資 separate from your normal 商売／仕事,' he says. 'That is because if you're running your own 商売／仕事, you're operating a 貿易（する）ing 商売／仕事, 反して 持つ／拘留するing 所有物／資産／財産s to rent out is considered by HMRC as an 投資 商売／仕事. It is simpler to keep these separate.'