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Any Way for Private Landlords to Claim Their Managment Time as an Expense

S

Sudhir London

New Member
Hi
I am a BTL portfolio landlord. I used to hire lettings agents on a full management service to manage all of my properties. Last year I gave notice to all of my lettings agent and now directly manage my properties as a private landlord. Is there any way for me to claim my time spent managing my properties as a revenue expense for my tax return? I realise that typically the answer is no. However, I heard that there is a work around and wanted to see if anyone has done this or has any suggestions:
a) Private landlords can create a limited company for the purpose of being a lettings agent
b) The tenants pay the rent into that limited company that the landlord owns
c) The limited company pays 90% of the rent of the landlord.
d) The landlord can then get tax relief on that 10% lettings management charge at their associated tax band, such as offsetting 40% as a higher rate tax payer for that letting management fee.
e) The landlord can withdraw the 10% of the rent held by the limited company through dividends payment.

The way that I see it is that in this scenario a landlord could reduce the amount of tax they pay on their rent by 4%. This is based upon a hypothetical 10% lettings management fee and the landlord is a higher rate tax payer. Is such a scenario allowed by HMRC? Would it make things seem more legitimate if the limited company was a genuine lettings agent that managed several properties, including properties owned by other landlords?
 
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