Purchasing a property through my Ltd Company

lolalola · 09-08-2022 1:25pm #1

So I run a Limited Company. I've no staff, no business outgoings as such, no stock, overheads, etc. So effectively all monies that I make go into the business bank account each month and sit there.

I've been renting for years, and want to purchase my own property. I have personal savings of approx 30k, and with my salary at 3700 a month, the mortgage I'd get as a first time buyer would be very small.

With that in mind, what about purchasing a property (even run down for example) through the company, or getting a mortgage through the company? There's a large chink of money sitting in the business that won't be going anywhere else other than to the taxman, and unless I can get that money out to myself (dividends?), what's my best route forward here?

I know it's not the standard way of doing things, but it's something I'm looking to consider - any suggestions would be much appreciated!

Ash.J.Williams · 09-08-2022 1:29pm

you're essentially an employee? as in you get paid 3700 pm from a company?

lolalola · 09-08-2022 1:52pm

https://www.boards.ie/discussion/comment/119449155#Comment_119449155

Yes

Ash.J.Williams · 09-08-2022 2:21pm

https://www.iconaccounting.ie/blog/purchasing-an-investment-property-in-limited-company

ELM327 · 09-08-2022 2:43pm

Assuming you're the sole employee and director, there are specific rules for what you're doing. If your business doesnt need the property and it's for you to live in, I suspect there will be a lot of BIK to pay to begin with

lolalola · 09-08-2022 4:15pm

https://www.boards.ie/discussion/comment/119449526#Comment_119449526

Thanks for that. I suppose my question is, with a business like mine where there are no employees and the money is simply accumulating in the bank each month, is there nothing I can do to access a large chunk of that other than to fold the business? There's something like 100k in the account now, and it's frustrating that I can't use that

melchior1951 · 09-08-2022 4:18pm

Well, you can take it out of the company as salary or dividend. You just have to pay taxes on it.

lolalola · 09-08-2022 4:53pm

https://www.boards.ie/discussion/comment/119450207#Comment_119450207

Isn't it taxed at 50% though?

hold my beer · 09-08-2022 5:39pm

It can get as high as 52%. You're going to pay corporation tax on profits if you don't reduce them, then income tax when you want to cash some of them out. So it might be worth declaring bonuses so you only pay the IT.

gudede · 14-08-2022 11:27pm

Pension fund could be an option. Speak to a financial advisor, however, there is a delay in opening company pension schemes.

(company funds your pension (self controlled pension) and the fund buys the house. You then pay rent). This could be a option.

on a site note, your company performance will be considered when applying for your mortgage

DFB-D · 31-08-2022 10:25pm

https://www.boards.ie/discussion/comment/119450190#Comment_119450190

Get yourself a tax advisor.

You can max out your pension, etc.

I help my clients with tax planning and there are actions you can take depending on your circumstances!

Purchasing a property through my Ltd Company

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