Share this content
15

Where are we at with pricing for BTL Ltd Co Costs

What fee will market stand.

Didn't find your answer?

A lot of people are now looking to setup companies if they are borrowing to fund BTL purchases.

In North East house prices are quite low low so a typical BTL may produce £6k per year in rent.

Once the initial advice and setup is done there will be very little in them, 12 rent receipts, 12 mortgage payments and a few repair bills.

I am thinking a few hours max to do them, so will struggle to get a normal Ltd co fee.

Currently I charge  £75 per rental property on top of normal tax return fee.

I just wondering where the pricing will sit for doing company BTL, as with MTD coming the accountnacy cost could outstrip the tax savings for a 1 property setup.

 

Replies (15)

Please login or register to join the discussion.

avatar
By In a Daze
06th Jul 2018 12:18

We don't normally advise clients to incorporate if they only have 1 or 2 properties for the reasons you have pointed out.

I personally will charge a minimum of £500 for filing Ltd company returns with good bookkeeping.

Thanks (0)
avatar
By andy.partridge
06th Jul 2018 12:32

Glenn, I'm not sure it was ever meant to work for a 1 property set-up. The usual limited company fee structure needs to be factored in at the outset.

There will be no limited landlord discounts here.

Thanks (0)
PJ
By paulgrca.net
06th Jul 2018 13:32

Somewhere between £1 to £10,000 should cover it!

Thanks (0)
Replying to paulgrca.net:
By Glenn Martin
09th Jul 2018 11:47

Great response in the true spirit of the site.

Thanks (0)
Replying to paulgrca.net:
By mrme89
09th Jul 2018 13:53

Perhaps you could share which company accounts you do for £1. I'm sure you would win lot of business from fellow Accounting Web members.

Thanks (0)
avatar
By Mr_awol
06th Jul 2018 17:53

I'd probably still insist on a minimum fee of at least £600 for a Limited company - no matter how few transactions there are. That's slightly discounted from the normal 'floor limit' of £800.

If there's any risk to it (they've incorporated using trusts to avoid conveying legal ownership etc) it might even end up more than a bog standard trading company.

Thanks (0)
avatar
By atleastisoundknowledgable...
07th Jul 2018 14:58

I’m somewhere between £400 & £600 depending on which day of the week it is (more accurately, how much I need to win the business to hit my sales targets).

For comparison, our normal ltd accy fee is £650 & £100 CT.

Unincorp landlords add £75 per property to the SATR fee of £100.

Thanks (0)
Replying to atleastisoundknowledgable...:
avatar
By andy.partridge
09th Jul 2018 12:20

I've never understood this separating the CT600 fee from the accounts fee. I'll tell you why.

In 20 years I have never had a limited company client say to me, 'you do the accounts and we'll do the CT600' or 'you do the CT600 and we'll do the accounts.'

Please explain if you get a moment.

Thanks (0)
Replying to andy.partridge:
Hallerud at Easter
By DJKL
09th Jul 2018 12:55

It appeared to come about with IXBRL, suddenly there was an extra charge to bill and before you know it a distinct charge for the CT600 submission was commonplace.

I must admit my fee notes do list in reasonable detail what I do (and sometimes what I do not do) but I only create distinct charge lines where there has been something during the year outwith the norm (e.g.HMRC Vat visit, dealing with mortgage broker re supplying data etc)

I have had a distinct tax charge with my employers where I prepared the final accounts (including doing the CT600 in draft) and the external firm we used for tax and tax planning did the actual lodging including reworking (if needed) my computation, but this is, as you say, not very common.

Thanks (0)
Replying to DJKL:
avatar
By andy.partridge
09th Jul 2018 14:06

As you can imagine, I was hoping that the person habitually billing a small client hundreds of pounds might answer the question.

Edit. iXBRL? There was no extra charge to bill except from the terminally greedy or disingenuous. My clients are not recharged my training costs.

Thanks (0)
Replying to andy.partridge:
By Glenn Martin
09th Jul 2018 16:02

Andy, I do show split the to show charge for the tax return but more in house reasons to see how much tax work v accounts and other I do.

(This is not an extra charge just split a portion of the bill to cover the time to do/advise on tax)

I also split out Xero subscriptions etc to make sure I am covering the outgoing costs.

Thanks (0)
Replying to atleastisoundknowledgable...:
By Red Leader
09th Jul 2018 14:56

What part of the UK are you in?

Thanks (0)
By Glenn Martin
09th Jul 2018 11:51

I think the banks seem to be jumping on this with higher arrangement fees for mortgages in companies, and higher interest than your standard BTL.

My thinking on fees is along the lines of those mentioned above.

I can see those with high LTV loans having to put money in to pay the tax for the company, as they do really with a BTL now.

Thanks (0)
Replying to Glennzy:
Hallerud at Easter
By DJKL
09th Jul 2018 12:09

You do not need to get that high re LTV for this to happen, the key being the loan repayment profile the bank will accept.

Thanks (0)
Replying to Glennzy:
avatar
By andy.partridge
09th Jul 2018 16:35

Thanks Glenn, my q was to atleastisoundknowledgeable

Thanks (0)
Share this content