Limited companies can be particularly useful for property portfolios, especially since the restriction
on mortgage interest relief came into play on 6 th April 2017. ABM can help you decide which
structure is best suited for your buy-to-let business and set up your limited company for you if
Running a limited company, as you may expect, is more onerous than holding your buy-to-lets as
an individual or a partnership which is why at ABM, we are happy to talk you through the added
responsibilities of being a director and what the ownership of a limited company entails.
Aside from the mortgage interest issue, the basic calculation of profits remains the same whether
you hold your properties in a Limited Company or not, but taxes are calculated very differently so
it’s important to get good quality advice from a property accountant who specialises in this area.
Did you know that Companies House levy substantial penalties for the late filing of accounts? Even
if you are less than 1 month late filing your accounts the penalty is £150. Up to 3 months late
attracts a penalty of £375 and more than 6 months late will cost your company £1,500. Let ABM
take the stress out of your reporting requirements and make sure that those important deadlines
are met with ease.
If you think you would benefit from running your property portfolio through a limited company,
have a read through our guide Buy-to-let Landlords in our knowledge area to get some more
information or call Loraine on 01642 592802.