Property Company???

[jaywestman]

I am a property developer paying income tax on profits made (as you do...). Is there an advantage to setting up a property company money-wise? There's just me doing it as a sole trader at present. Thanks :-)

[Miss Zippy]

There are lots of tax advantages available if you trade through a limited company - there are too numerous to mention here, but, for instance, by being paid dividends rather than drawing a salary you can reduce your higher rate tax bill from 40% to 32.5%. Corporation tax need not be a huge liability as this can be reduced by paying dividends.  Also, should the business fail, your personal assets are not at risk, which they are if you trade as a sole trader.