Being a management agent

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

    Being a management agent

    So I have 3 properties in my own name and am close to completing on a property in my new limited company. I want the new company to not only own and rent the new property but also manage the other 3 properties at a market rate of 10%. As the company will own and rent a property it will be a valid business so will be allowed (As apposed to just setting up a company to manage which would be seen as tax avoidance).

    Having looked into it I believe as a management agent I will need to sign up to one of the two redress schemes... Is there anything else I need to do?

    #2
    There are, at least, moves towards requiring client money accounts.

    The schemes will require you to have documented complaints procedures.

    Comment


      #3
      Thanks, I did see that which is why it will be property management not rent collection, so dealing with tenants phone calls, sorting out repairs and doing things like reminders for gas safety certificate. A complaints procedure should be pretty easy to put together.

      Comment


        #4
        Originally posted by catdog1121 View Post
        I want the new company to not only own and rent the new property but also manage the other 3 properties at a market rate of 10%. As the company will own and rent a property it will be a valid business so will be allowed (As apposed to just setting up a company to manage which would be seen as tax avoidance).
        That's probably not going to attract too much attention, but it's cutting it quite fine.

        The "agent" will have one customer, who is the owner of the business.
        Even if the business is carried out at a market rate, it's hardly a commercial arrangement.
        And the only reason I can see for the arrangement is to introduce a new expense allowable against your personal tax.
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

        Comment


          #5
          I have checked and it is ok as the company will own and rent out a property it is acting as a viable business in its own right, if the only business was to manage the directors properties then yes that would not be allowed.

          It can very easily be argued the reason for the arrangement is to be part of the redress scheme and rather than having to apply twice, once as myself and then again as the company... This will become even more apparent if as suspected in the November budget they announce that all tenants must have redress via a scheme so those landlords self managing will have to register with a redress scheme. The amount charged is actually below the local market rate. It can also be argued it gives a more professional look to my personal rentals by having a management agent.

          Yes it switches the tax liability from me to the company but the only reason I am buying my next property in the company is to do that exact thing, it is acceptable providing the business is a valid business and that no more than market rate is charged.

          Comment

          Latest Activity

          Collapse

          Working...
          X