You may find that by using a property management company you will improve your tax position. If so, it is advisable to draw up a simple contract between you and your company.

Do not set up a company that manages your properties and just simply start paying money into it.

If you just go ahead and start making payments into your company, HMRC could challenge you (if you are ever investigated) for making artificial transactions to avoid paying tax.

Just drawing up a simple contract that outlines the services your company is providing to you will help to prevent such a challenge!

This entry was posted on Wednesday, September 17th, 2008 at 10:48 am and is filed under Property Companies, Property Income Tax. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.