Do you need a LIMITED COMPANY for your BUY TO LET investment?

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Do you need a LIMITED COMPANY for your BUY TO LET investment?

Рет қаралды 27,069

Күн бұрын

Buy to let investments are extremely profitable especially when buying property in a limited company. Knowing is you need a limited company for your buy to let investment is key because you actually pay more tax than you need to. Understanding your Buy to let investment strategy is key to understanding if you need a limited company for your property investment.
Many of my mentees are always asking me, "Jamie! Do you need a limited company for your buy to let investments?!" SO I thought, I should make a video all about buy to let limited companies and if you should get one or not. You know me, you know I love my BORING, VANILLA, BUY TO LET investments. So today is your luckily day that I'm going through if you need a limited company for your buy to let investment ;)
Let me know about your limited company strategy or what you next buy to let purchase is in the comments below!
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Пікірлер: 110

@Aceimus1066 Жыл бұрын

These videos this month are literally the idiots guide I've been looking for. Unbelievably 100% relevant for me. 👏👏👏

@JamieYork Жыл бұрын

Haha, beginners guide. You’re not an idiot! 💪

@carlandrews7348 Жыл бұрын

People miss the inheritance bit it’s to far off they don’t think about it. Remember the 2 things taxes and death. Generally property is a long term investment. Just had to sign my own personal guarantee this week which was well pointed out as well Jamie 👍

@JamieYork Жыл бұрын

Love ittttttt

@RafalSB Жыл бұрын

@7:46 your “right” sounds like a quack. Made me giggle. Thanks Jamie!

@JamieYork Жыл бұрын

Hahaha!

@ukclarkkent Жыл бұрын

We got a naughty word or 2 AND a redonculous today. Why Jamie, you're really spoiling us!

@JamieYork Жыл бұрын

I truly do spoil you 😉

@mikevolante7663 Жыл бұрын

I sold a personal house and was shafted big style for CGT. setting up a co. Today.

@JamieYork Жыл бұрын

Live and learn!

@blazing_skill1372 Жыл бұрын

Hi Jamie, great video! A lot of videos that discuss the topic of limited company vs personal, often miss out the fact that a limited company is difficult and takes time to set up, you have to file yearly financial reports, so most likely need an accountant. unless you are in the 40% bracket then go for personal name.

@JamieYork Жыл бұрын

Pretty much bud! So many people miss bits out yet so simple in the grand scheme of things

@pierrelabuschagne5904 Жыл бұрын

EDUCATION

@JamieYork Жыл бұрын

Thanks! Go to bit.ly/aspireeducation and fill in your details! :)

@basimmaan4549 Жыл бұрын

Thanks Jamie..I hope I know long time ago.. To sort so many things

@JamieYork Жыл бұрын

Best of luck!

@haroonkhan5933 Жыл бұрын

How do you refinance through a limited company? Is it difficult compared to refinancing via an individual?

@alannock1358 Жыл бұрын

Nice to see the sweary Jamie back!

@JamieYork Жыл бұрын

Just for you! 💪

@maxaquilino7264 Жыл бұрын

Very good video overall, just missing the example of capital gain tax when selling the property in both scenarios-personal name versus Limited company

@JamieYork Жыл бұрын

I mentioned it from memory… capital gains vs corp tax?!

@AS-uv2ue Жыл бұрын

Brilliantly put James

@JamieYork Жыл бұрын

Who's James?

@sukikaur1634 Жыл бұрын

Thanks loved you video,, l lilked the way you write it on the down. It was more clearer ,to understand it make more video s ,.God bless you

@JamieYork Жыл бұрын

Glad it was helpful! Thanks for watching!

@Matthew-yb5sl Жыл бұрын

perfect video. Thankyou Jamie! 👍👍👍

@JamieYork Жыл бұрын

My pleasure!

@davidharding3465 Жыл бұрын

Great advice again Jamie. Thanks for this video.

@JamieYork Жыл бұрын

No worries!

@kevinwooldridge2127 11 ай бұрын

Thank you, really great content as usual.

@JamieYork 11 ай бұрын

Glad you enjoyed it, thanks for watching!

@lawrencer25 Жыл бұрын

Nice video. Lots of people fall in the trap of very high dividends 🙉🙈🙊😭

@JamieYork Жыл бұрын

Tell me about it

@BellaVlogsLife Жыл бұрын

😂😂😂 "thank you government, really excited about it"

@JamieYork Жыл бұрын

😂😂

@ChrisLee789 4 ай бұрын

Can I just check something. At the start of the video you use £100,000 profit on your calc for a 20% basic rate tax payer, although if they had made £100,000 they would almost certainly not be a basic rate tax payer, just wanted to clear that up and see what your thoughts were?

@stiffler4186 Жыл бұрын

How many properties do you put under each limited company? Often wondered this

@JamieYork Жыл бұрын

There is not limit from what I’ve seen bud :)

@JAYBOLA1 4 ай бұрын

I thought you could take upto £500 a month dividens?

@theo3599 Жыл бұрын

Just a small correction if you don't mind: if you have only income from rental properties you don't pay NI as hmrc does not consider it real income which a problem in itself if you want state pension. My wife is earning 45k from rents but does not pay NI. On top of that you cannot have a SIPP as you don't consider to have real income

@JamieYork Жыл бұрын

Very interesting about the SIPP! I didn’t know that. Thanks for adding value :)

@Mute040404 Жыл бұрын

You can still have a SIPP, but only up to £2880pa

@theo3599 Жыл бұрын

@@Mute040404 that is correct, just like any other person with no income

@EroAvgousti Жыл бұрын

Property prices in Leeds after this video 📈😂

@JamieYork Жыл бұрын

👀 😂

@kk-yz3vj 2 ай бұрын

Me and my wife put our first home on rent but never officially transferred it onto a ltd company even though we do have one. How do you transfer it from your own name to a ltd company.

@piersfisher4606 Жыл бұрын

Great video first one I’ve enjoyed in a while

@JamieYork Жыл бұрын

Ermmmmm, thanks 😂

@hungrymossop 6 ай бұрын

In the first scenario regarding tax, how can an individual earning 100K profit still be in the 20% income tax bracket? Or is the 100K just for example purposes?

@AdamHayekMilton Жыл бұрын

Hahahaha love your humor 🤣

@JamieYork Жыл бұрын

;)

@SlackHoffman Жыл бұрын

Can you change a pre-existing buy to let into a company ? Many Thanks

@JamieYork Жыл бұрын

You can, just make sure you look into it before hand!

@anamariahuluba 6 ай бұрын

Jamie I don’t understand. I’m a basic tax payer and have now 4 buy-to-lets. Worried that the threshold will push me into the higher rate tax. Why did you say that as a basic tax payer you’re paying 80k for a rental income of 100k? Won’t that rental income be added to the overall income and the tax bands apply?

@SimonSoleiro-hq6sg 25 күн бұрын

can you advise a company to get my limited company up and running

@alexstone1492 Жыл бұрын

Dividend tax is 30% over £43k

@JamieYork Жыл бұрын

33.75% as a higher rate tax payer. Madness isn’t it

@benh7056 Жыл бұрын

Question. If you were to buy property while earning at 20% tax, could start a ltd company and swap them over to that if then found yourself to be earning at 40% tax?

@XyzTorres Жыл бұрын

I believe you have to pay stamp duty as you’re technically moving the property to somebody else. The company is a separate entity. I might be wrong though, just what I heard before.

@ukclarkkent Жыл бұрын

You'll have to pay another lots of stamp duty as you're selling to your company. Numbers might stack up but probably not if you've got loads or don't want to keep hold of them for a long time.

@JamieYork Жыл бұрын

The comments below are mostly correct. Technically you can do a transfer of a group of properties into an ltd but it costs about £20k

@davidchester429 Жыл бұрын

Makes me laugh when they tax landlords. Who do they think is going to pay the tax, especially when demand for rentals is so high

@JamieYork Жыл бұрын

Yep. Madness isn’t it!

@roccostiff2444 6 ай бұрын

Would you say it’s a good investment and less risk at the moment in just investing in a ltd company that buys renovates and refinances, that pays 10% on investment and I would get 1st charge on properties?

@chessdon5267 Жыл бұрын

Quick question in regards to the personal tax bracket. For example if I’m employed and my salary almost falls in to the 40% tax bracket. I end up owning a property(under my name) and start renting it so I will have to pay tax on the income rent. Will I automatically falls into the 40% tax bracket since my salary was on the edge of the 20% tax bracket and now I’m earning extra income coming through rent?

@JamieYork Жыл бұрын

If you're into the 40% income tax bracket then you'll pay 40% but remember it is a bracket so you don't pay 40% on everything only on the income over the 20%. Does that make sense?

@chessdon5267 Жыл бұрын

@@JamieYork Yes absolutely thank you. So HMRC will take my salary(from normal employment) and sum that with the rental income? They will see these two incomes as one? Which will push me to the 40% tax bracket and from there as you said it’s 40% on everything above the 20% bracket right?

@howardbattersby5672 6 ай бұрын

are there any differences in stamp duty payable?

@user-vo3pt3fv1i 7 ай бұрын

Hi Jamie! What is your advice on someone who is currently living in a property and would like to rent it out because they want to move into a bigger property their partner to live in. It will only be one property to convert to a limited BTL. I am in the higher tax income bracket, there will be no CGT because I lived in the property, no early repayments as my product ends in a few months, there will be stamp duty to pay, I have less than 170k to pay off the mortgage. The objective is to keep it for future generations. And the property is a leasehold. Should I rent as a residential or rent as a LTD BTL?

@ingarmerescenkov2712 Жыл бұрын

what if I loan currency with interest to LLC and get paid back interest?

@JamieYork Жыл бұрын

Probs not ideal

@100mph Жыл бұрын

Video on how to spend money as a business please

@JamieYork Жыл бұрын

Noted it down :)

@davyw Жыл бұрын

Thanks Jamie, just wanna ask you, in terms of getting a mortgage with Ltd, is it easier? 2nd question is can the Ltd rent the property back to the director?

@martyscott1974 6 ай бұрын

Is it a hassle to put my 9 btl into a Ltd company

@rhyswells8038 Жыл бұрын

Would it be worth swapping my buy to let property into a limited company if I plan on getting more property’s ?

@JamieYork Жыл бұрын

Yeah

@danielkeor1749 Жыл бұрын

Education

@JamieYork Жыл бұрын

Thanks for reaching out! Go to bit.ly/aspireeducation and fill in your details :)

@petinathomas6096 Жыл бұрын

I have a rental in my name and want to transfer it to my daughter how best is this to do this. As I'm moving abroad. Ps. The property is on interest only

@JamieYork Жыл бұрын

Few options for this. Add her to the mortgage and deed and share it. Move the property into a LTD company (you'll have to pay some tax)

@LJ-be8cl Жыл бұрын

Thanks again Jamie, great video as always. Are the tax laws changing in regards to ‘updating’ your property? For example, if your property needs a new kitchen because the old one is falling apart then this would be classed as an upgrade so you therefore you can’t claim back the tax on it?

@JamieYork Жыл бұрын

Yeah it can be used reduce your tax

@rustey222 Жыл бұрын

Jamie, is it true its hard to get a BTL mortgage through a limited company without owning your own home, in your own name?

@warda.5361 Жыл бұрын

Hi Jamie, Great video. Is it 8.75 for dividend tax on any amount you pay out from the company or is there more you pay the more dividends you pay out? Thank you so much.

@The_Unintelligent_Speculator Жыл бұрын

The free content here is superb Jamie, thank you. I am in the process of downsizing my home to enable to let it on consent to let. Before I rent it, can I transfer it to a Ltd Co or does it still go through the process of having to sell it to the Co? Lastly, do you recommend just setting up a company then worry about accountant later or try get both bits done at the same time? I’m into 40% bracket with 1 other rental and I just need to take this step into the Ltd route. Any good recommendations to help with any of these? Again, thanks.

@samm2211 Жыл бұрын

Hi Jamie Is it possible for a foreign company to invest in buy to let properties in UK and apply for a mortgage?

@JamieYork Жыл бұрын

Yeah but you'll get higher rates normally

@MegC Жыл бұрын

Hi Jamie, quick question. I want to start my property portfolio this year but I don’t have any money. I’m wondering can I set up an LTD and take out a business loan to afford the BTL deposit? (I have my own residential but it’s at 90% LTV) Any help would be greatly appreciated - frequent viewer 😊

@JamieYork Жыл бұрын

I probs wouldn't get a business loan, can you find an investor to invest in you and give them a better return because you might be able to recycle the money

@MegC Жыл бұрын

@@JamieYork thanks Jamie. Is that because they won’t accept loans as BTL deposits? Or because it’s cheaper? Thanks 😊

@anthonydavidson4045 Жыл бұрын

Can you use a DOT to avoid 40% by putting profit from btl into partners name (who's on 20% income)

@carlfoster9408 Жыл бұрын

I've looked in to this and from my understanding, very difficult to do it retrospectively, particularly if married or civil partnership. It is possible if you have a genuine reason other than avoiding tax. if you were able to sort it before buying the property then much more plausible. I'm No expert on it, but as I said, I spent considerable time looking in to it and that was what I concluded.

@anthonydavidson4045 Жыл бұрын

@@carlfoster9408 thanks very much for the response, it seems I can't get anything definitive on the DOT idea but I guess legally it's binding and therefore should present a solid footing if questioned. Looks like a potentially solid option. I wonder if anyone has any experience or used one on here?

@souledoutyt Жыл бұрын

F you thank you goverment that really took me out😂

@JamieYork Жыл бұрын

Glad you liked it 😜

@darrenhill9931 Жыл бұрын

Another example of keeping the rich richer and poorer poorer 🙄🤷‍♂️

@JamieYork Жыл бұрын

Yeah … I’m okay with that. It’s a choice for 95% plus people. You want to be poor then crack on, if you don’t then crack on.

@evh892 6 ай бұрын

😂😂😂❤❤❤

@jayb2124 Жыл бұрын

I like the content but the language e.g “shit” “bullocks”you use discredits the professional aspect.

@JamieYork Жыл бұрын

I'm sure that most don't give a shit ;) ...Just kiddingggggg... not really... I'm just being me bud, if that doesn't relate to you, that's all good :)