If a property is owned by an individual, can rental income be paid to a management company. How does this affect taxation.
Some posts refer to renting the property to the company, which then rents the property itself. I assume this is to redirect rental.
However to redirect profit, can the company make a charge for collecting rent, to reduce individual profit.
Usually this does not benefit IT or NI contributions (as IT is replaced with Corporation Tax), but does it benefit by smoothing income by paying dividents to below the higher tax rate limits. On years with lower income (non rental), higher dividends can be paid.
Some posts refer to renting the property to the company, which then rents the property itself. I assume this is to redirect rental.
However to redirect profit, can the company make a charge for collecting rent, to reduce individual profit.
Usually this does not benefit IT or NI contributions (as IT is replaced with Corporation Tax), but does it benefit by smoothing income by paying dividents to below the higher tax rate limits. On years with lower income (non rental), higher dividends can be paid.