Would setting myself up as a 'company' help?
Discussion
Hello, I have a couple of residential properties I rent out. One of them needs refurbishment over the new year period. Normally I'll just go to a DIY store (B&Q, Homebase etc.) and get my bits and bobs and crack on with the jobs. More recently, due to wanting to spend my time off work with my wife/kids, I've employed local builders to do the refurbs for me.
I know they apply some mark up on the kit they buy on my behalf. I'd like to be able to buy kitchens/bathrooms etc at trade prices, get them delivered to the property and just utilise the builders for their artisan skills and not their interpretation of what I (or more realistically - my wife) would like. Experience has shown that they often make the wrong cosmetic choices and to top it off I pay a small but not insignificant premium for the priveledge.
If I 'owned a firm' could I then open an account with local trade suppliers for the gear I need?
Previously I've just declared all property income and expenditure on a self assessment return and paid the taxman his slice of what's left. I find this quite simple, would it be more difficult if I was 'a trader'?
I'm looking at buying more BtL properties over the next few years, does this change any advice you'd offer?
If it looks viable, how would I go about it and what would the potential costs be?
Sorry for so many Qs and rambling on a bit, had a few sociables in the pub this afternoon and this is just an extension to the conversation/utter tosh that was being 'discussed' with my fellow drinkers. CHeeeeeeers
I know they apply some mark up on the kit they buy on my behalf. I'd like to be able to buy kitchens/bathrooms etc at trade prices, get them delivered to the property and just utilise the builders for their artisan skills and not their interpretation of what I (or more realistically - my wife) would like. Experience has shown that they often make the wrong cosmetic choices and to top it off I pay a small but not insignificant premium for the priveledge.
If I 'owned a firm' could I then open an account with local trade suppliers for the gear I need?
Previously I've just declared all property income and expenditure on a self assessment return and paid the taxman his slice of what's left. I find this quite simple, would it be more difficult if I was 'a trader'?
I'm looking at buying more BtL properties over the next few years, does this change any advice you'd offer?
If it looks viable, how would I go about it and what would the potential costs be?
Sorry for so many Qs and rambling on a bit, had a few sociables in the pub this afternoon and this is just an extension to the conversation/utter tosh that was being 'discussed' with my fellow drinkers. CHeeeeeeers
Do you mean using a company just for buying stuff and getting trade prices? or to actually own the properties in the company? I expect the trade suppliers may be more interested in volume of trade and not whether you trade as a sole trader or a company.
As regards owning the properties, if you finance them by bank debt I doubt they will give you as good rates/terms if their customer is a company. They would want personal guarantees anyway.
As regards owning the properties, if you finance them by bank debt I doubt they will give you as good rates/terms if their customer is a company. They would want personal guarantees anyway.
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