Setting up a buy-to-let or HMO investment business

Buy-to-let frequently asked questions

Why do investors use limited companies?

If you're a higher rate tax payer, or plan to have multiple buy-to-let or HMOs then using a limited company helps manage your tax more efficiently, and offers more flexibility. If you don't use a limited company you will need to do a self-assessment tax return for the rental income, and pay income tax on your profits. Our free Pro Masterclass explains more about this aspect of investing.

How long does it take to get the company set up?

Setting up a company typically takes around 3 working days, depending on Companies House processing times. More complex company setups may take longer.

Can I make changes to my company once it’s set up?

You can, but it might not be tax efficient and it could be costly in legal fees. It's best to set up your company correctly from the start. Our expert property tax advisors can guide you through this as part of our Advisory packages or in a one-off tax consultation.

I’m about to secure my mortgage. Does it matter if I’ve not set my company up yet?

Most lenders will require you to make an offer in your company name, so it's important to set your company up first to avoid delays.

Do you offer a one-off company set up?

No. All of our clients go on to appoint us as their accountant so we bundle the price of the set up with our plans. It includes our award winning tax software to help you stay compliant and manage your business income and expenses, and file your accounts at the end of the year.

Can you be my registered office?

Yes, you can keep your home address private by using our registered office address service. This service is included in our Advisory packages and can be added to our Ordinary or Optimised packages for just £5/month.

Do I need a business bank account?

Yes, limited companies must have a business bank account. This is because your company is a separate legal entity, and it’s a legal requirement to keep your personal and business finances separate.

What happens when I add more properties?

If you exceed the number of properties included in your package, you can add additional properties or upgrade to a more comprehensive package to suit your needs.

If I become a director or shareholder of a limited company, would I lose my personal first time buyer perks?

No, as the company is a separate legal entity. As long as the property you are buying in your own name is your first, the first time buyer allowances should still apply.