Tell us more about your situation here in the comments box below. Feel free to read our article www.optimiseaccountants.co.uk/knwbase/extracting-cash-out-of-a-limited-company/. Why not join us at one of our live events? Register here: www.optimiseaccountants.co.uk/monthly-seminars/.
I wonder if you’re still thankful to boris and rishi sunak for the state of the UK economy right now. Not sure about you but I’m certainly not happy with energy costs cap increasing to £2800
It’s a fair comment about leadership of the UK especially given the hypocrites that they seem to be. However, I am not sure who is better placed to lead this country. The Labour Party are an absolute disgrace
Hi Simon, love the content. I am remortgaging a BTL property which is in my personal name. The lender are giving me £173k which i am going to buy a seperate new property. The new property will be in a limited company. How do I claim the £173k as an expense under the limited company?
What about exercising stock option within your own company? Capital gains allowance is £12,500, can you help me understand why you wouldn’t use that allowance on your own company shares using the total profit pre expenses as a calculation of stock value?
@@UK-Property-Tax-Accountants Thx for the comment, is there a U.K. equivalent when buying into property to lower taxes? In the states this is a big saver as sure you know.
I am an EA for 1040s so I am envious of the generous tax system in the US for depreciation until it is sold that is for recapture. There are capital allowances in the UK for vacation rentals/ Furnished Holiday Let’s and commercial property (1250 equiv)
Great video. Re loaning the company to earn 6% - 8% to claim interest; Does this only apply to limited companies for property businesses or can other business (e.g. IT business) with a ltd also do this ? Thank you in advance.
Hi Simon, is it possible to get contact you as an accountant for my ltd company , after watching this video, I believe I really need to change my accountant 😢. Do you offer your services??
Thank you for your great video. You can get around 20k per year out of your Ltd tax free. If you own two companies the total amount you receive is combined, so you'd have to divide the amount (f.e. 10k out of each company). Is that correct?
Very interesting. Re the £5000 savings allowance, presumably if you take dividends as well, this will take your income over the £12,500 allowance and so you will reduce the £5000 allowance?
The £5000 and £12,500 are mutually exclusive. Therefore it is possible to extract £17,500 out of a limited company without paying any income tax at all.
Hi Simon, I particularly love the £300 gift vouchers for directors, but my accountant says I cannot do this because I'm not running a trading business, with my company just being an SPV for tax purposes. Any thoughts?
Hi, thanks for the video, might be a total newbie question, but can I take £8000 per year from my limited company tax free, but at the same time have a full time job earning £30k per year? Thanks.
Thank you for the video. Could You please help me the explain the savings and interest £6000 tax free? I do understand it s free from company tax 19%, but is it still be charged 20% on personal tax? Thank you
It might be a great idea to speak with your accountant to get a complete understanding. This is a complex area especially when it comes to your specific personal tax situation
Is it still better to do it as a sole trader if your business is a buy to let (mortgage interest rates can be deducted if Ltd) and/or you have a different full time job with another income stream?
Hi Simon - thanks for the video - good stuff. I having made in 2021-2022 £20k in turnover after all expenses (100-80) but before tax calculations as self employed - can I invest all £20k into, lets say, a small mini property in UK (lets say a shed to store my business tools) and write of all £20k as expense to get taxed zero (100-80-20 property)=0 (or would it be applicable with LTD?
You can invest into plant and machinery to get a capital allowances claim. You would not be able to write off any of the expenses if you were to purchase a property as in bricks and mortar
That said, albeit you may not be able to write off the deposit and the purchase cost of the property you would be able to claim the repairs and maintenance costs. However, this would be 100 different tax regime so you would not get the right off against your self-employment income
I am just sorry that they are a little vague, I am sorry for this. We do have a live stream going out on Monday night at 8 pm. Please make sure that you are on that slideshow and pose you’re more detailed questionnaire
Hi if you are able to claim 10,000 interest via directors loan, providing you are lower rate tax payer. Would 6,000 be tax free and you would pay standard rate personal tax on 4000?
Do you need to state anywhere to HMRC what the interest rate % on the directors loan is? i.e. can this interest % vary year on year when filing accounts?
I’m currently the only appointed director of my company, if I was to appoint another director to the company, can we both take 2k tax free as dividend?
Hi there, I love your videos. I have a property company and have loaned as director's loan £750K to purchase properties. Do I have to claim interest on my loan? Can't I just bring out my loan tax-free and interest-free?
You can charge interest. The company will have to complete a CT61 form to deduct 20% income tax. You can claim some tax back on a self assessment as basic and high rate tax payers can earn some interest tax free. Do speak with an accountant about this complex set of transactions
@@UK-Property-Tax-Accountants if the company pays 20% tax on the interest you charge isn’t that the same as you paying tax on that income. Eg if you drew it as wages at basic rate you would pay 20%?
@@UK-Property-Tax-Accountants thanks Simon. So that means I'd have to loan the company £62,500 based on being able to earn £5000 interest at the top end 8%
@@UK-Property-Tax-Accountants Do i have to pay the corporation tax of 19 %, if i have loaned a company £62,500 and deducted £5000 interest. Let say at a company account is £57,500. Thank you for very useful content at the presented video :)
if my gf works for me as an employee i am a director but also take paye at a low rates would i be doubled up as a director and an employee for relation to the voucher 150 limit for employees and 300 for directors lastly is it correct max £50 a time voucher from 1 shop, but how would hmrc see it if i got 2 x £50 voucher lets say argos or amazon, 1 for employee and 1 for me would there ears pic up say hmmm i can see 2 x £50 looks not correct or simple as it is 1 for me 1 for employee
It’s sensible to take advantage of the tax fee allowances, whilst keeping within the guidelines. The allowances are £300 for directors and employees that are closely connected with the directors/shareholders
Can you do some comparative work discussing ISAs over buy to let investments? Your lectures are brilliant by the way and if I gointo this sector I may be very keen to employ your services!
Tell us more about your situation here in the comments box below. Feel free to read our article www.optimiseaccountants.co.uk/knwbase/extracting-cash-out-of-a-limited-company/. Why not join us at one of our live events? Register here: www.optimiseaccountants.co.uk/monthly-seminars/.
I wonder if you’re still thankful to boris and rishi sunak for the state of the UK economy right now. Not sure about you but I’m certainly not happy with energy costs cap increasing to £2800
It’s a fair comment about leadership of the UK especially given the hypocrites that they seem to be. However, I am not sure who is better placed to lead this country. The Labour Party are an absolute disgrace
Hi Simon, love the content. I am remortgaging a BTL property which is in my personal name. The lender are giving me £173k which i am going to buy a seperate new property.
The new property will be in a limited company.
How do I claim the £173k as an expense under the limited company?
You can use HA340 rule (worth a google). It will act as a directors loan account of sorts
Thanks for this
You’re very welcome Michael
Hi. Could you please make the same video, but an update for 2023. Thank you
Great idea. One is coming up in the next three weeks
Great video, clear contekst
Thank you that is much appreciated
What about exercising stock option within your own company?
Capital gains allowance is £12,500, can you help me understand why you wouldn’t use that allowance on your own company shares using the total profit pre expenses as a calculation of stock value?
This is the little bit too complex for a UA-cam for. Better to speak with your accountant and tax advisor
Thanks for putting this up. Pls does this apply to limited company with less than 40k yearly turnover?
Yes indeed it does.
Thanks, any idea how you process directors loan on CT tax return. No idea how to find the section on Companies house
Sadly this is something you will need to speak to your accountant about
Do you have a video on property depreciation tax benefits
You cannot claim tax depreciation on UK property.
@@UK-Property-Tax-Accountants Thx for the comment, is there a U.K. equivalent when buying into property to lower taxes? In the states this is a big saver as sure you know.
I am an EA for 1040s so I am envious of the generous tax system in the US for depreciation until it is sold that is for recapture.
There are capital allowances in the UK for vacation rentals/ Furnished Holiday Let’s and commercial property (1250 equiv)
Great video. Re loaning the company to earn 6% - 8% to claim interest; Does this only apply to limited companies for property businesses or can other business (e.g. IT business) with a ltd also do this ?
Thank you in advance.
Any business can be charged interest from their directors
Hi Simon, is it possible to get contact you as an accountant for my ltd company , after watching this video, I believe I really need to change my accountant 😢. Do you offer your services??
We sure do and be delighted to speak with you. Please see this site: www.optimiseaccountants.co.uk/become-a-client/
Thank you for your great video. You can get around 20k per year out of your Ltd tax free. If you own two companies the total amount you receive is combined, so you'd have to divide the amount (f.e. 10k out of each company). Is that correct?
Sadly not as simple as that I am afraid. That is where the video is great for guidance but not to deal with specifics of using multiple companies
Hi Simon, Excellent video. Does that mean if you have more than one company you can take advantage of the £300 gift voucher per company?
You could but it does become more problematic
Very interesting. Re the £5000 savings allowance, presumably if you take dividends as well, this will take your income over the £12,500 allowance and so you will reduce the £5000 allowance?
The £5000 and £12,500 are mutually exclusive. Therefore it is possible to extract £17,500 out of a limited company without paying any income tax at all.
@@UK-Property-Tax-Accountants Thanks
Stopped listening as soon as you started banging on about how wonderful BJ is.
Great video. Quick question, do you get taxed on funds raised by remortgage and then taken out of a limited company?
Great question. You would be taxed if you took mortgage money out of a company as it belongs to the company.
Optimise - UK Property Tax Specialists thanks for the reply 👍
You are very welcome
Hi Simon, I particularly love the £300 gift vouchers for directors, but my accountant says I cannot do this because I'm not running a trading business, with my company just being an SPV for tax purposes. Any thoughts?
You might want to look for a new accountant
Hi, thanks for the video, might be a total newbie question, but can I take £8000 per year from my limited company tax free, but at the same time have a full time job earning £30k per year? Thanks.
You will need to get tax advise from your accountant to discuss your specific tax situation
Thank you for the video. Could You please help me the explain the savings and interest £6000 tax free? I do understand it s free from company tax 19%, but is it still be charged 20% on personal tax? Thank you
It might be a great idea to speak with your accountant to get a complete understanding. This is a complex area especially when it comes to your specific personal tax situation
Is it still better to do it as a sole trader if your business is a buy to let (mortgage interest rates can be deducted if Ltd) and/or you have a different full time job with another income stream?
Great question but there are so many variables that I would not be able to answer that on a YoutTube thread.
I am good, just not that good 😎
Hi Simon - thanks for the video - good stuff. I having made in 2021-2022 £20k in turnover after all expenses (100-80) but before tax calculations as self employed - can I invest all £20k into, lets say, a small mini property in UK (lets say a shed to store my business tools) and write of all £20k as expense to get taxed zero (100-80-20 property)=0 (or would it be applicable with LTD?
You can invest into plant and machinery to get a capital allowances claim. You would not be able to write off any of the expenses if you were to purchase a property as in bricks and mortar
That said, albeit you may not be able to write off the deposit and the purchase cost of the property you would be able to claim the repairs and maintenance costs. However, this would be 100 different tax regime so you would not get the right off against your self-employment income
Hi Simon - thank you for the replies
I am just sorry that they are a little vague, I am sorry for this. We do have a live stream going out on Monday night at 8 pm. Please make sure that you are on that slideshow and pose you’re more detailed questionnaire
Hi if you are able to claim 10,000 interest via directors loan, providing you are lower rate tax payer. Would 6,000 be tax free and you would pay standard rate personal tax on 4000?
That is indeed correct provided that you had no other personal taxable income.
Do you need to state anywhere to HMRC what the interest rate % on the directors loan is? i.e. can this interest % vary year on year when filing accounts?
Ideally yes, this is good for audit purposes and annual comparisons
Super useful content, Appreciated Simon 👍🏻
You are so very welcome. Thank you 🙏
I’m currently the only appointed director of my company, if I was to appoint another director to the company, can we both take 2k tax free as dividend?
Only shareholders, whom may also be directors, can take £2k dividends. The more shareholders the more tax free dividends
@@UK-Property-Tax-Accountants thanks
You are very welcome
Can you take this out of each limited company tax free
I wish, but sadly not. It is a personal tax
Hi there, I love your videos. I have a property company and have loaned as director's loan £750K to purchase properties. Do I have to claim interest on my loan? Can't I just bring out my loan tax-free and interest-free?
You can charge interest. The company will have to complete a CT61 form to deduct 20% income tax. You can claim some tax back on a self assessment as basic and high rate tax payers can earn some interest tax free. Do speak with an accountant about this complex set of transactions
@@UK-Property-Tax-Accountants thank you very much - and congrats once again on the great videos
Thank you 🙏 that is a kind thing for you to say
@@UK-Property-Tax-Accountants if the company pays 20% tax on the interest you charge isn’t that the same as you paying tax on that income. Eg if you drew it as wages at basic rate you would pay 20%?
Yes that is correct. However, a basic rate tax payer gets £1,000 interest tax free
These rules apply to irish companies as well ?
Great question but I’m sadly not sure, sorry 😢
He loves Boris 😂🥳
My love child
@@UK-Property-Tax-Accountants you're more likely to be his! Great video, boss man!
Thanks Simon great info!
Pleased you got some use out of it Daniel
Good video but your views on Boris and Sunak have not aged well lol
Yes I do agree that there may be some issues with regards to the government leadership
how much money would you need to loan the company in order to claim £5000 interest in 1 year?
HMRC typically allow you to earn between 6% and 8% per annum on the loan you provided?
Did that answer your question Ross
@@UK-Property-Tax-Accountants thanks Simon. So that means I'd have to loan the company £62,500 based on being able to earn £5000 interest at the top end 8%
Yes indeed that is correct. You can of course charge less interest
@@UK-Property-Tax-Accountants Do i have to pay the corporation tax of 19 %, if i have loaned a company £62,500 and deducted £5000 interest. Let say at a company account is £57,500. Thank you for very useful content at the presented video :)
The interest is a cost to the company and gets 19% corporation tax relief.
if my gf works for me as an employee
i am a director but also take paye at a low rates
would i be doubled up as a director and an employee for relation to the voucher 150 limit for employees and 300 for directors
lastly is it correct max £50 a time voucher from 1 shop, but how would hmrc see it if i got 2 x £50 voucher lets say argos or amazon, 1 for employee and 1 for me
would there ears pic up say hmmm i can see 2 x £50 looks not correct or simple as it is 1 for me 1 for employee
It’s sensible to take advantage of the tax fee allowances, whilst keeping within the guidelines.
The allowances are £300 for directors and employees that are closely connected with the directors/shareholders
Do I need to include this £300 voucher as Benefit in Kind? Thank
No as long as you do not exceed £50 at any one time and do not exceed £300 per year
@@UK-Property-Tax-Accountants Can I buy a one off £300 gift voucher once a year. Instead of £50 voucher every 6 weeks?
This would become a chargeable event for tax and NI by exceeding £50
My accountant smokes weed, no wonder im skint
Can both my wife and I as directors for the ltd company can take £2k dividend each tax free? Or just £2k between us?
That would be £2k each tax free
@@UK-Property-Tax-Accountants is that no matter what your income is?
Yes indeed.
Very interesting. Is there a limit on number of directors you can name?
Can you do some comparative work discussing ISAs over buy to let investments? Your lectures are brilliant by the way and if I gointo this sector I may be very keen to employ your services!