Should you buy property in a LIMITED COMPANY or in your PERSONAL NAME? | Buy-to-let with Jamie York

[@amandamantra]

You know the man is serious when he has a digital whiteboard.

[@JamieYork]

Oh yes!

[@priiyoo]

Lol

[@abracadabra1394]

Hahaha.. .just discovered him today. My new KZbin hero...

[@ackford9583]

It’s not a digital whiteboard. It’s an ipad pro. He’s just really small 😂

[@sikanderalishah8999]

😂😂😂😂

[@marcparsons1530]

It is a minefield Jamie, thanks for the video. My accountant is a tax specialist and has advised me currently to buy property in my personal name, whereas one of the mortgage advisers adamantly said to buy in Ltd company. I currently am a director of my own business and receive a salary and dividends and using property for my retirement portfolio. At some point you are going to have to pay tax is probably the most salient point.

[@hasask3300]

hey mate. is it possible to share the name of your tax sp/accountant? i am looking for one and struggling to find someone decent

[@declanreynolds6097]

One thing worth mentioning is the flexibility ltd companies give you in regards to tax planning. You could add your wife as a shareholder for example and flex the shareholding’s you a percentage that is more tax efficient. For example if your nowhere near higher rate but your wife is you might want more shares than her. You can sell your company later on when you retired and get £1million pound entrepreneur relief. You can pay yourself a salary through the company which is a tax deductible expense etc. You can pay into your personal pension through your ltd company to wipe out your profit which is tax deductible. Ltd company’s have more flexibility which is what I prefer about them.

[@JamieYork]

Well said Declan!

[@pascalg1656]

Multiple tax issues again here Declan. Three of your five benefits are likely to backfire or will not work. Please get a professional to help you.

[@declanreynolds6097]

@@pascalg1656 I’d only mentioned 4: - flexible shareholding’s between you and your wife. Exemptions from Capital gains for transfers to your wife/husband. - pension contributions to a maximum of £40k per year each is completely fine. - directors salary’s are completely fine. If 2x directors up to personal allowance is compeltely fine. - potentially something up the entrepreneur relief but not that I’m aware of? Please could you explain?

[@David-ue4hh]

You won’t get entrepreneurs relief on a business composed of residential properties.

[@rigatooflondon97]

I heard entrepreneurial relief was not free of tax anymore but pays 10%

[@PA-lf8sd]

Depends on your situation :) Whatever you choose will be wrong somehow because of the shifting changes over time. For example, keeping houses in a Ltd. was better when you could cream off the dividends almost tax free and not have it all personally collecting under PAYE. Things have changed since I started, and it's almost exactly equal whichever way you do it now. ...and that will no doubt change again over the coming years. My personal tactic was to own enough personally to achieve roughly the £12,500 limit for when I retired, then added more to a Ltd. The rules and tax landscape will shift over the years but the above method seems resilient (12+ years now), so beyond that it's pointless worrying too much about it.

[@JamieYork]

Sounds like a plan, well done

[@alannock1358]

Just found your channel today. Your advice completely matches the advice received from my company accountant, the difference being, I could understand your version better! My wife is a house person, so her allowance is used to minimise our tax burden. We have three properties let out but we are now mortgage free, both of us are about 60 years old. With our principal home on top, our concern these days are death duties! Perhaps you could do a video on how death duty affects landlords, and the most tax efficient way to leave let properties to our loved ones? I intend to work my way through your videos. Thank you for posting them, you deserve to have many more subscribers. Kindest regards.

[@JamieYork]

Cheers Alan! Good luck

[@1evilpie]

Great video. I'm a Company owner anyway and 40% tax payer but it was still ridiculously difficult to work out whether an Ltd. was best for my houses ( I only have 4). In the end it was so marginal I just went for the Ltd. as it definitely swings that way if I buy a few more houses. One thing that works nicely for me is lending personal money to the Ltd and charging 4% I get taxed on that as an income but it's an expense to the Ltd so doesn't get hit with corp tax. Another thing people don't realise is how much more expensive legal fees get when you obtain a mortgage through an Ltd. I've had to pay for three solicitors with some lenders, one for my Company, one for the lender and another (who can't be the same one) to advise me personally whether I should lend my own money to my own Ltd!!! Crazy!! Anyway thanks again for the video, wish I'd seen it about 3 years ago haha....

[@JamieYork]

Sorry I couldn't release it sooner!!

[@TokShogun]

Why do you charge interest on the loan? doesn't that mean you save paying 19% corp. tax to then pay 40% income tax which leaves you worse off?

[@1evilpie]

@@TokShogun The other way to take the money out would be dividends which are subject to 32.5% tax after you've paid your 19% corp tax 40% tax on the interest leaves you with £60 out of every £100 19% corp tax and then a further 32.5% dividend tax leaves you with £54.68 out of every £100

[@josueneto3]

@@TokShogun if you loaning to your ltd company, and then the company pays you back, isn't that tax free, since the money you put in is personal and so taxed already? So you should only pay tax on your interest gain? If i open a ltd company now and put my personal money in there for the 1st deal, if i want to take it out after do I have to pay tax on it again once it arrives to my personal name?

[@flightsimcentre9244]

@@josueneto3 that would be a directors loan

[@Distech1]

Perfectly paced video, you hit every single query I had without dragging it out to an hour long video, thanks so much! :)

[@JamieYork]

Glad it was helpful! Thankyou!

[@setache3628]

Thank you Jamie for explaining this complex area in a simple way.

[@JamieYork]

Welcome! Thanks for watching! Glad the video helped you!

[@sulemanmd]

Skip to 04:57 and sums it up in those 4 seconds from there. Love this Jamie. Rock solid foundations.

[@JamieYork]

Thanks bud. Glad you got value

[@sulemanmd]

@@JamieYork could you please let me know if I qualify for that Colchester HMO deal you have on at the moment. I have been trying to see if I can get this for my ltd company.

[@CB-pt2uo]

Can somebody help me ! How can 14 people dislike this video , i just don't understand people . Perfect Vid Mate keep up the good work .

[@JamieYork]

Haha, I appreciate that mate. I wouldn’t worry I could do a video just giving away money to people that need it and you’d still get people disliking. I never take it personally

[@danaakal-kawari6924]

Probably an element of the old green eyed, good work Jamie.

[@TaliBradley]

Another consideration for Ltd Company is the ability to transfer shares to inheritors.

[@Linh-rv5dg]

yes, Jamie if you see this, please do a video on the pros and cons of inheritance through ltd

[@mrricharde6]

Good point about LTD company only working out if you plan on leaving the money in to grow. As a 40% tax payer from a separate 9-5 job if I was to go through a limited company paying 19% corporation tax and then another 32.5% on my taxable dividend payouts I would be worse off than if I just left them in my personal name. Tax on profits works out about 45% equivalent doing this where as I would only get 40% tax owning in personal name. An LLP however offers the expense perks of a limited company but also low mortgage rates of owning personally so seems to be the best option. The other problem with a limited company is the mortgage rates are higher like you mentioned.

[@kav1187]

I am in this conundrum right now. Great timing once again. Thanks 😊

[@JamieYork]

You ask and I deliver

[@amalali504]

This is great content Jamie. Something not often covered widely, I guess because its not sexy but 100% detrimental & the way we should be approaching property as a business for us aspiring property investors. Its always great when you can walk away from a video with food for thought & actionable plan to consider. Sometime people can skip paying attention to the foundation they're building on. Thank you.

[@JamieYork]

That's exactly it mate yeah!

[@rockdog7323]

Great video. Just in process of purchasing my 8th property. Was considering Ltd Co but your simple outline of advantages has helped make my mind up. BTL. The only business that can’t claim back business costs. Unbelievable. How did gov get away with it 🤷‍♂️

[@JamieYork]

Glad it was helpful!

[@PA-lf8sd]

"The only business that can’t claim back business costs." What...? My BTL company claims back every "business cost". I also claim back every "business cost" from my personal properties too.

[@ziggyszukiewicz5271]

Jamie great video, your knowledge is great,thank you... Keep posting similar content, there is lots of misunderstanding in this topic but your video explains a lot of confusion great job 👍

[@marlonpdavids]

Really informative mate. Keep them coming most people can’t explain this stuff and you are right it all depends. There’s not right or wrong way in my opinion it just depends on youth setup and goals 🙌🏽

[@JamieYork]

Exactly yeah! Thanks for watching mate!

[@stephenwall9036]

Thanks for a great video. I'm going through the same ltd Vs personal dilemma. Food for thought...

[@JamieYork]

Glad it was helpful! Best of luck!

[@acxezknightnite1377]

Thanks for doing this video. Every other video I’ve seen concentrates purely on the 40% taxpayers who are affected by this. Not having anything (until now) that explains it for the 20% taxpayer has been frustrating. This is very clear and succinct. Thank you.

[@JamieYork]

Thanks :)

[@shansath4482]

Thank you for thus video. Suppose property in personal name eventually falls for inheritance tax as well.

[@mamemful]

Fantastic guy. Really inspiring. Keep up the good work!

[@setache3628]

Thank you Jamie for explaining and breaking it down in such a simple way. You are the best in this property business. 👍

[@JamieYork]

Thank you! I like to try!

[@duttontube]

The examples here are good, but they don't factor in day to day expenses - need to consider maintenance and lettings management. Your profit is actually a lot less than the examples shown, but still an important lesson in income Vs expenses Vs taxes. As Jamie says, independent accounting and tax advice is super important.

[@JamieYork]

Hey James, You're 100% right. This video could easily be to be over an hour so we wanted to make sure we the basic theory is there :)

[@PA-lf8sd]

Lettings management - £0. Never ever used an agent in 10 years. They're all bloody useless and you make far less money for no service. For example, they wanted £50 (10 years ago this was!) for a new key if they were managing it. Told them to sod off and managed them all myself. If you get a letting manager, you're paying commission every time they find a let and if there's an issue they still bother you with it (or they charge a bloody fortune to sort it for you). Manage it yourself, accept you're making nowhere near what you could, or forget BTL altogether.

[@Addy13Gangs]

Great video. Appreciate you sharing knowledge.👍🏼👍🏼👍🏼

[@JamieYork]

Thanks addy

[@Axiom121]

fantastic video Jamie, youre a great teacher

[@JamieYork]

Glad you think so!

[@eloisebevan1316]

Hi Jamie, Great video yet again loving your content at the moment it is very helpful to me on my property journey! I have one question, at around the 6 minute mark where you talk about 20% income tax bracket before and after the new policy, and wrote £720 NETT before and after, is this actually the taxed amount, and £2880 would be the NETT before and after for this bracket? :)

[@JamieYork]

Thanks Eloise! Great spot… I screwed up 😂

[@brettsterlini1350]

@@JamieYork big time😂

[@naq5339]

thanks god I found this comment. I just calculated many times and even changed a calculator to check the numbers

[@kamelitani7878]

Am glad someone brought this up! Spent the last half an hour repeating my calc😅

[@DanielDeLacey]

Evening Jamie thanks for your direct, educational content. It’s really helpful. Can you do a video on the First Home Initiative for key workers due out today 4th June please?

[@JamieYork]

Great suggestion!

[@electraededjo8277]

Thanks a lot for this video. Please I need more of this, still deciding what to do.

[@JamieYork]

On it 💪

[@willhigson648]

The man is spot on here. I had to read a very dry property tax book 5 yrs ago to get the info that Jamie supplies here in 10 mins so now I know he’s legit. 👍

[@JamieYork]

Glad it was helpful! There is nothing more dryer than a tax book!

[@zeerazaq6755]

Really good video, you are absolutely💯 % right speak to a property accountant and tax advisor. The savings are huge and will compound your growth😀

[@glostergloster6945]

One other tip for those who DONT want to put property in a company, and are married or in a civil partnership AND one partner is in a lower tax bracket, is to put the property in joint personal names, that way the property income is taxed separately per individual, and you pay less tax on one half of the income.

[@JamieYork]

Whatever works best for you! Sure thing!

[@Lemxns]

13:45 when he says if you’re smart you’re paying 7.5% rather than 37.5% dividend tax - what exactly does he mean by if you’re smart? If you are a higher rate tax payer is there a way to still only pay 7.5% dividend tax? The combination of corporation tax + dividend tax seems huge if you’re a higher rate tax payer and want to pay yourself an income from your rental payments. Personal it’s 40%, Ltd it’s 19%+37.5%, unless I am missing something?

[@greenmanlove1]

got to say your videos Jamie are very helpful, thanks

[@danielnadeem4052]

Honestly have learnt so much from watching your videos. Keep up the good work!

[@JamieYork]

Thanks Daniel :)

[@robdavis6144]

As always. Fantastic video. Very clear and well explained. Keep it up 👍🏼

[@JamieYork]

Thanks, will do!

[@MRW515]

I am just starting on the property investment journey, I will have two properties in 6 months, and I am wondering if I should own one, just to have a small but regular income and also create a limited company to build up a property portfolio.

[@JamieYork]

Want to learn more about Buy-to-Let's? Download my free Boring Vanilla Buy-to-let guide here: bit.ly/jyboringvanillabtlguide

[@dreamy665]

Thanks Jamie, your videos help me understand so much :)

[@WarrenBennettUK1969]

Really helpful, I've both company and personal and wondered with the rises in interest if i should move the personal ones across to the Ltd Co however keeping a couple personally might be best for retirement. Many thanks Jamie

[@JamieYork]

Think long term not short term :)

[@romeospadre]

Brilliant video mate, very informative and well laid out

[@JamieYork]

Glad you enjoyed it

[@sadikicole3444]

Fantastic video, I worked this out last year

[@JamieYork]

Boom! Well done 💪

[@krupeedan]

What if you are you not buying buy-to-lets and only flipping houses? Love your channel btw!

[@kikyssp]

So helpful, thanks Jamie!

[@JosephAkhil]

Hi Jamie, the £720 NETT you mentioned at 5:42 for 20% tax payers is actually NETT or tax expense? Scenario 1- 20 % of 3600( keeping 700 per month ) is 720. Scenario 2 - (20% of 12000 - 20% of 8600(tax relief)) is 720

[@brickers911]

Yeah I thought that but Jamies right i did the numbers, B4 is 20% of £12000- £8400 rent is £3600, 20% tax of that is £720. After is £12000x20% =£2400, minus tax relief of 20% of £8400 is £1680. £2400-£1680=£720

[@JosephAkhil]

@@brickers911 yes agree .. so £720 is the tax deducted , not the NETT ( profit). I got a bit confused as it was mentioned £720 NETT.

[@brickers911]

@@JosephAkhil Thats right the Nett profit for a 20% taxpayer will be £3600-720 =£2880. Jamie is that correct or did you make an error on the presentation at 5:42??? Now i'm confused tax is complex!

[@catrionarannoch]

@@brickers911 I got the same as you. It didn't make sense to me that a 20% tax payer would end up with less NETT profit than a higher rate tax payer

[@davidriley1572]

Great video Jamie, Just a quick note, Dividends are 32.5% higher rate and 38.1% Additional ;o)

[@JamieYork]

My man 💪

[@shadycallum]

What about buy to let with an offshore company? I am british, I have an online business and got £30k deposit. I want to B2L and move somewhere WARM! Would an offshore company be of benefit to me? What about tax exile status? Can I still come back in 5 years and remortgage? Cheers Jamie, your content is the best out there by far.

[@mullacrenrut6517]

Be quite interested to know this too. Bills in the UK are insane right now. Makes sense to B2L and live somewhere cheaper

[@workhardplayhard7610]

Was thinking the same! Any idea @Jamie York?

[@londonmadenb9421]

Amazing video, really clear and detailed

[@stephenrandles9248]

Very helpful and educational Jamie keep it up!

[@JamieYork]

Glad you think so!

[@Mirpurmad]

Subscribed: I am at the stage of decision making and even without this video I was tilted towards Ltd. company. there will be some admin of course but its worth it.

[@rlc2978]

Would be interesting to have inheritance tax consideration on transferring your property company to your beneficiaries/kids?

[@matthewcolledge4880]

This guy is amazing!

[@JamieYork]

Ah thanks bud!

[@krismalde7994]

Thanks for this. Very knowledgeable. One question - you didn't address the CGT implications. Any advice on this please.

[@rosiewang5920]

I’d say the difference is marginal as what you saved on tax would go to lender’s pocket due to much higher interest rate and fees for LTD. Whilst LTD gives you the flexibility about when to withdraw the profit, personal ownership gives you the flexibility on how to use the property, i.e. you could switch to a residential mortgage and live in there or pass it to your children someday. It all depends on personal circumstances and the property you are buying.

[@PA-lf8sd]

You can pass on company-owned property to your children. My tactic was always to be frugal with dividends and salary (only ever up to the higher tax ceiling), build up the profits in the company and then loan it to my property company which then bought property in cash. Then you don't need to worry about lenders trying to tell you what you can and can't do, and the interest rises are of no concern to you.

[@james4P367]

One consideration to make here is leveraging debt when your property(s) increase in value. In your personal name you can do this without paying tax. In a company this is viewed as profit/taxable if it’s not reinvested before year end. Equally if you were to try to move that money outside of the company it would be taxable.

[@orchidlady14]

Concise and helpful. Subbed😊👍👍

[@JamieYork]

Thanks for the sub! Welcome aboard 👍

[@hellojoealexander]

Great video as always, thanks Jamie. Would be keen to know your thoughts on investing in property vs paying off the mortgage on the house you live in? ie, if I have 50k sat in the bank does it make sense to invest that in a 2n property if ive still got a big mortgage on my own home or is it more sensible to get that mortgage paid off first? thanks as always

[@JamieYork]

Hey Joe check this video out and it might give you some clarity kzbin.info/www/bejne/hajWfmODd7apnLc

[@Valentine1313]

Great video, one question... What if your living in the Middle East, Qatar or Dubai for example, and you buy property in Uk but are a non tax resident? How would that work??

[@derin111]

Thanks for the video. What if you have no mortgage on your buy to let property? Therefore unaffected by Section 24? I’m also possibly going to be in a position to buy another buy to let without borrowing. I’m so confused as to what to do. 😔 I’m retired at the age of 59 currently btw.

[@matthewhunty]

@jamie Maybe you could do a video on how much extra profit you’re making since you remortgaged your existing houses to a lower rate. The government is doing a tax grab on this profit. I think it’s very unfortunate the new landlords are caught up in this.

[@JamieYork]

Great suggestion!

[@helenlockwood5082]

I'm a 20% tax payer buying my second buy to let with some premium bond money and savings i have. Im buying in the NE with no mortgage. After watching your video i'm going to keep to no more than 3 properties in my personal name. Im 10 years off my state pension so should own them outright by then.

[@matthewedmondson2713]

Thanks for confirming my own thinking. I would be a HRT payer if it wasn't for substantial pension contributions. Currently buying in personal name and offsetting it with making higher pens contributions (keeping me lower rate!). Essentially this makes my day job less and less important going forward, to the point I'll literally need to quit to keep me lower rate. It'll be company properties from that point forward. Brill channel.

[@pj0179]

That's a great idea until you hit 40k yearly contributions.

[@matthewedmondson2713]

@@pj0179 correct

[@JamieYork]

Thanks Matthew! You've been watching for a while so thank you!

[@PA-lf8sd]

This is where Ltd. comes in. You can choose to pay yourself or not if the money is sitting in a Ltd, or do other things with it. Gives you more options. I'm currently pounding my pension allowance (£180K this year as I've never contributed until now) from my company in order to avoid Corp Tax, so pensions work whether personally-owned or company-owned :)

[@PA-lf8sd]

@@matthewedmondson2713 Except when you haven't contributed for 4 years :D I'm planning to only do 2 more years of work so it's time (all being well, touch wood) to pump up the pension by about £120K this year, put the full allowance in next year, tour the world for a year after that and then put my feet up for a few years until I can access the SIPP. I'm one of those that the govt says should go back to full time work yet they actively discourage me by raising every tax I pay, so I've decided to do the opposite of what they want and retire altogether. I think the OP is thinking along the same lines for his future, and I wouldn't discourage that for a second.

[@andrzejklimek2029]

Thanks for your work

[@yy5123]

I happened to come a cross your video, it’s honest and amazing, I have subscribed to your channel. By the way where I can buy digital white board from?

[@JamieYork]

Thanks for subbing! The board is great isn't it! Its a SAMSUNG FLIP, Its deffinatly worth the investment!

[@j9network78]

Thanks very much for these tremendous videos Jamie I think you advice is really solid. One thing I found inconsistent though in this particular video was your suggestion of £700 mortgage against £1000 rent. I wasn’t sure why you estimated mortgage at such a high percentage against the rental income. You equated this at 70% but in the past few years typically would be nearer 30% I was just wondering why you had shown the mortgage cost to be so high in this example? Many thanks

[@JamieYork]

It’s not realistic at all. Just to have it as a comparison metric on the tax :)

[@beverleysmith3629]

What about leaving property in your name to family members by will? Is there a benifit to your elected beneficiaries, by putting property in a company? Or What would be the benifit of distributing shares in company to family before dealth? And what about lending money to a company? Or lending money from one company to the other?

[@BrumGP]

Thanks so much for this video. Subbed.

[@mattydiz199]

Pls do more vids on 20% thanks Jamie 👍

[@JamieYork]

You got it!

[@UnCoolDad]

How does it affect inheritance - or perhaps sharing income with family members, might it be better to have a Ltd company with children?

[@JamieYork]

Its worth a go!

[@stevew3226]

Nice advice bud, thanks :)

[@JamieYork]

No problem 👍 Thanks!

[@MarzellCrypto]

great video mate very helpful

[@JamieYork]

Glad to hear it

[@anand1kenobi356]

Great video, thanks.

[@JamieYork]

Cheers mate! Thanks for watching! 🙌

[@matthewtierney2963]

Might be worth considering IHT implications. For the record making BTL ownership less attractive is a good thing.

[@JamieYork]

Why’s it a good thing your opinion?

[@matthewtierney2963]

@@JamieYork for the record I'm a home owner and have a well above average household income so it's not sour grapes. Landlords have driven up house prices over the last two decades making it difficult for many ftb to get on the ladder. Basic supply and demand compounded by inadequate housing stock, particularly in the lower end of the market means home ownership is out of reach for many. Residential mortgages are often cited as the cause of the financial crisis in 2009, yet a lot of BTL mortgages breached covenants and defaulted also, contributing to the problems.

[@PA-lf8sd]

​@@matthewtierney2963 "Landlords have driven up house prices over the last two decades" Total rubbish. For example, all of my BTL are bottom-of-the-pile stuff that no-on in their right minds would want as a home. They are great earners for BTL because they're always in demand, but they'll never be a home. I'm therefore not even competing on the regular market or eating into the housing stock. It's so easy to just tarnish a whole sector with stupid throw-away comments like this, when you clearly know nothing about the intracacies... For the record, decades of neglecting house-building and ever-increasing population is to blame. At the moment they're going on about rents being stupidly high because quite a lot of BTL landlords are getting out of it (because the govt is making it difficult) and now there's f*ck all rental options for people who can't buy. So, making it difficult for BTL landlords has only affected the poorest by making renting even harder and even more expensive...

[@matthewtierney2963]

@P A so a great earner for a landlord but too shit to be a home. Therein lies the problem. Longer term making being a landlord less attractive will drive down prices, so it's a good thing, in my opinion. Would be great to see the end of slum landlords, you know the ones that rent properties out that will never be a home.

[@AA-be9rn]

Love the ✌😂 how does tgis work if i own the property outright. Thanks

[@thedoggsound6653]

Very useful content mate. U doing great job educating ppl. Do you do any stock investments at all?

[@JamieYork]

Yes I do

[@thedoggsound6653]

@@JamieYork any cryptos? You are fully diversified then... Mr york knows the game

[@mat2524]

Hi great video what’s your recommendation on already being a 40% tax payer and only wanting 1-2 buy to let properties?

[@bossinbooth4481]

Please answer or provide some options

[@louiseknight4576]

Similar here

[@rossgreetham4229]

@@bossinbooth4481 Did you get a reply or find out about this. I am in the same situation. Thanks

[@naj114]

I think there is no simple answer, it's easy to work out the tax due under personal but under ltd there is more flexibility with accounting and how you release monies i.e. loan to the company, director loan from the company, salary, dividends.

[@gelosul]

How about flipping a house? Would it be better on company or private?

[@Techno-Charge]

Subscribed, thank you for all the info. Your are a true Guru.👍

[@JamieYork]

Thanks for the sub!

[@rajestate4364]

I just want to ask one question, "if we buy property in company's name and after some time, if we are selling our company, then does that property will be also automatically sold to the new owner of company!??? Plz clarify this!!🙏🏻🙏🏻🙏🏻🙏🏻

[@JamieYork]

You can do that. Or you can move the property to another company you set up. My recommendation is to not buy property in a trading business. Instead, set up a separate LTD

[@rajestate4364]

@@JamieYork Thxs for the reply York!!☺️☺️

[@gracebowker4127]

Absolutely love your content! I think it would be best for me to put property in my personal name as I am in the 20% tax bracket and want to use the profit to buy new properties… however I am planning to get into property as a 3 person venture, what would your advice be in this situation? Are you even able to buy a property as a 3? Thanks! 😊

[@JamieYork]

You can buy as a three but I would probs suggest doing that one through a LTD :)

[@balazsrepasi8035]

That was so useful, thanks

[@JamieYork]

Glad it was helpful!

[@TUTANKHAMUN077]

Is it a good idea to buy a property on full cash payment using Ltd company. No mortgage issues. So basically you buy using profits of company as investment and than rental will come in. Corporation tax will be deducted from that profit only. So not a bad idea i think?

[@AMIsmail22]

Great video thanks for sharing 🙏🏽

[@JamieYork]

Glad you enjoyed it

[@AMIsmail22]

@@JamieYork I want to star property business hopefully end of next year I will be definitely willing to take your education package because you already educated me a lot thanks 🙏🏽

[@Solihul886]

Question: if you have a portfolio of personal name BTL that maximizes the basic tax threshold between a married couple, is there much point creating a second portfolio via a ltd company if your intention is quality of personal spendature rather than buying more property for the sake of it? For example, if i wanted to get a better main residence, can i use both my personal income and ltd income to purchase without being hit with a large dividends tax (which would work out more expensive than higher tax personal anyway). Or is it literally just for on paper wealth

[@semothecoolk9]

amazing video dude !

[@chrismorgan6057]

Sound advice too many property “gurus” think LTD companies are the only answer. Looking at my own situation I’ve just handed my notice in at work (5 HMO’s 1 single let) and will be using some of my property income, I have given my wife on a lower annual income some beneficial interest and will also make £240 a month pension contributions all to ensure I stay just under £50k as well as ensuring my properties are well maintained replacement roofs, bathrooms, kitchens etc. I have a limited company set up (it can appear more professional) which I just file dormant accounts for. If it looks like at a future point I might breach the tax threshold I will start buying in my LTD company everyone needs to very carefully analyse their own circumstances! I think if you want income up to a certain point yet still want to expand then a hybrid model is generally going to be the best solution.

[@JamieYork]

You're right! Everyone is different!

[@johnpilkington6879]

Basically, cash is king 🤴

[@JamieYork]

Always!

[@smomla8339]

Very informative video, thanks. Can I just ask is that a Digital Whiteboard or just screen connected with iPad?

[@JamieYork]

Digital whiteboard

[@lifeofkiwi8675]

Brilliant advice thank you.

[@ryanwollacott8205]

Can you buy first few properties in personal name and then when you get to point of being close to that 40% bracket any future properties you buy in LTD company? Also I would say difference in rates more like 1% and way higher arrangement fees for LTD.

[@recardoh]

For me, definitely personal, don’t wanna go to crazy want to have a time for my life😊

[@JamieYork]

Exactly mate! Spot on!

[@pepperpeterpiperpickled9805]

Your videos are great, mate. So if I buy a property in my companies name, im personally financially liable for it BUT if someone sues my business, I could lose the property? Can you do a video on how to set up a Cayman Island account?

[@NY-Dani]

Regarding the dividend tax, depends on the circumstances, but you can take a salary from your company, if you really need the rental income.

[@JamieYork]

Very true :)

[@ivaneft]

And then pay tax on that salary as an individual. You are screwed either way if you are in the 40% tax bracket as an individual.

[@NY-Dani]

@@ivaneft yes but it's better than paying corporation tax plus dividend tax on the money you want to take out

[@danielkirkland3366]

@@NY-Dani all the capital you into a company do it as a loan to the company Also close the company at the end and over the. Years take a salary at free tax thereshold

[@PA-lf8sd]

@@NY-Dani Or you can avoid that all by pumping it into a pension.

[@JawadAli-s3q]

liked and subbed. Good info, keep it up

[@andrewgalloway9766]

worth considering and looking into inheritance tax and wealth transfer when using a ltd co more acuratley a smart ltd co where the future beniffisarys of your estate become shareholders

[@JamieYork]

Very smart approach!

[@benh1087]

Hey Jamie, great video. What would you propose to a pair of siblings within 20% bracket (currently) looking to build a large portfolio over the next 25 yrs? I realise this is not financial advice, just curious !

[@MONEYFREEDOM3030]

very useful info Jamie thx , one question for you. i have sold my house and now have 80 K to play with although I stay in Airbnb's for time being. what's the best approach , how to invest my 80K ? bearing in mind i still pay for my own accommodation ?

[@alisavas9526]

Very informative! I thought the biggest advantage of Ltd. was that you make yourself MD and get salary. Yes, you pay income tax but it's expense for Ltd, tax deductible so net hurt is the difference of income tax and corporation tax.

[@David-ue4hh]

Correct. The video completely ignored the fact that there are two ways to take an income from a limited company - salary and dividends to shareholders. He also ignored the different treatments of capital gains when a property is sold - properties held in a company until recent years can claim inflation relief on gains. He ignored that company held bigger properties have to claim an ATED (Annual Tax on Enveloped Dwellings) exemption or face huge fines. Companies have the advantage that they can make bigger contributions to a directors pension scheme. The list goes on and on…

[@whome5810]

@@David-ue4hh How do you get an Annual Tax on Enveloped Dwellings exemption? I know if you let it to a 3rd party on a "commercial" basis that you don't have to pay the tax, but would a BTL with residential tenants in it qualify for the exemption?

[@whome5810]

@@David-ue4hh Hi David, I see you replied to my question about ATED exemption, thanks very much for that. Unfortunately your comment has disappeared, would you possibly be able to re-post it? Thanks very much!

[@zshah9787]

Are you able to change from private to a PLC at any point?

[@stevewalden1159]

Hi Jamie, thanks for your videos, you're presentations are superb. Question for every one. Is being 51yrs old too old to start in buy to let. Facts. Have a job. Have a small deposit 90/ 100k ish want to retire around 68 / 70 with around 40 k per annum inflation adjusted? Your thought would be very well received.

[@JamieYork]

51 is not too old. But you will need to put time into property and in 5/10 years you can achieve your goals!

[@lucasvasiliou9227]

Another great video, thank you Jamie :) I have a question, if you don't mind helping me please? I am 29 on 35k looking to gain my first BTL at the end of this year. I don't have a mortage as of yet. I plan on keeping BTL profits for maintenance costs and reinvesting for other BTL's in the future. Based on what you've said, LTD would make sense. However, as I am in the 20 percent bracket (and don't believe I will surpass this for quite sometime) would it make sense for me buy my first property in my personal name? My logic is: I don't believe I will be able to purchase a 2nd buy to let until another 5 years, so I don't want to suffer added tax in a LTD until than. Is this correct or have I misunderstood the maths?

[@JamieYork]

There's a lot to consider with that, it all depends on personal circumstances too! If it feels right do it!

[@lucasvasiliou9227]

@Jamie York Thanks Jamie. I think I'll just need to crunch the numbers more !