Paying Tax as self employed or through a company
I have a couple of questions regarding tax on rental income which I need to make clear. I have read a few books on property lettings, property investments and how to be a landlord but I am still to find answers to my questions. I own two properties in Romford, Essex on my name and I am renting both of them out. I am paying tax as a self employed person but considering the tax changes I have established a limited company. My plan was to give the properties to my company and start paying tax through my company, which is much lower. The problem is, is that I have to pay capital gains tax and stamp duty when selling the properties to my company, which will be a hefty bill. So my first question is: is there a way to avoid paying stamp duty and cgt in my situation when giving the properties to my company. I have read that, it is possible to do that if you have 3 or more properties and if you can prove that you spend more than 20 hrs work and you run them as a business. Can I transfer the mortgage to my company as well as my houses. My second question is: is it possible to pay my company ONLY THE PROFIT from the rent that I receive and this way I can pay the taxes through my company. To me more specific, lets say I receive £1000 rent per Month, and I have £500 expenses (Mortgage and other expenses). I will pay £500 to may company (for property maintenance). So I make £0 profit as self employed therefore £0 tax as self employed. My company will make £500 profit and I can pay tax as a company which is much lower than being self employed.
I hope that makes sense and someone has a good advice for me.
I didn't find the right solution from the Internet.
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