Setting up new limited company - Get an accountant right away or wait?

[anthonyk123]

Hi Everyone

I am planning to purchase 2-3 buy-to-let properties this year. Income from these will be approx £25000-£30,000

When setting up a limited company, did you have an accountant on board from day 1?

Or did you set up the company yourself, do your bookkeeping, then hire an accountant to complete the returns when needed?

I have seen different options for limited company accounts. Some companies want you with them all the time paying £xxx per month, while others offer their services for a one-time fee when they are needed.

What is the best option to go for in your opinion?

Thank you in advance

[Section20z]

My feeling is that if you have to ask whether you need an accountant or not then you definitely do. From day 1.

[jpkeates]

You should probably find a good accountant, ideally one who has a number of landlords as clients.

The first thing to consider is whether a company is the best route forward, it might be, but it's not the only way and it does have a number of negatives for some people.

[SouthernDave]

Defo speak to an accountant beforehand. They can advise if a Ltd company is best for you. Once you buy them, either through Ltd company or not, your then committed to that way forward.

[Gordon999]

For holding BTL property under personal name, the finding of rental tenant and collecting rental income can be done by the letting agent . So you have 12 monthly statements for each property which you give to accountant to prepare your tax return and submit online .( or do yourself ). You don't need to consider company method unless your total income from Job earning plus rental profit exceeds £50K ( start of 40% tax rate.) . Personal income is taxed at 20% ( £12500- £50,000) and 40% ( above £50,000 ) .

For holding a BTL property under company name, the company has annual filings to Companies House, for director and shareholder and annual accounts ( within 9 months from end of company years ) . The Company has to submit annual tax returns. The Company pays corporation tax at 19% on company profit , but dividend income first £2000 ( Nil tax ) and higher dividend is charged at 8.75% for 20 % tax payers or 33.75 for 40% tax payers.

So you should visit 2-3 local accountant firms ( for small businesses ) , speak to the accountant and get a quote for providing services to a new BTL company. They will tell you if they have BTL clients and what information is required and kind of bookkeeping records ( and software ) etc..

[loanarranger]

Apologies for sounding like an echo of JPKeates but it is essential to consult an accountant who indeed has a fundamental grasp of Limied CO’s investing in BtL’s.
Nothing else to add.

[anthonyk123]

Thank you for all the replies

[Neelix]

Fwiw, if I was Chancellor I would make the taxes for BTL LLs the same for Ltd or held personally

[loanarranger]

I was attending this morning a Virtual seminar dealing with Buy to Let and with a specific focus on structures on ownership/borrowing, as I have suggested along with others that discussions must be had with an accountant , however the speaker made a key mention that not all accountants are suitably qualified to provide Tax Advice even though they in turn may be a chartered or certified accountant: he stressed that one should consult with a qualified Tax Accountant to ensure complete and unmitigated advice is provided. With this I thought it appropriate to make mention in the forum