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This is because when you purchase you pay tax straight away.
For example, if you purchase a property for £100,000 and rent it would be £500 a month, you pay tax on the £500 a month from day one
If you did this through a Company then at the end of the tax year you would pay corporation tax
If you want to take the money out you would then pay personal tax
So finance wise its more cost effective to do it personally as you dont pay corporation tax
Ok. I see.
Can I clarify anything for you about this today please?
If I am generating an income at the moment on a personal level, should I be paying tax on this anyway?
Minus allowable deductions but for that you would need an accountant
Can I clarify anything else?
Is this higher or lower than the corporation tax?
But even if you made a profit you would pay corp tax and then if you took the money out would paid personal tax
I see what you mean.
Expenses wise eg.building work, can I claim against the company at a lower rate?
No, its always the same
And if its building work you can generally only deduct that when you sell it
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are there any other disadvantage or advantages i should be aware of?
No that's it.....
thank you for your time.