It's easy to find lots of reasons to buy property with a company, and for the most part seems like a no brainer. However, this isn’t’ always the case.

Most reasons for investing as an individual is due to the Cons of investing in a limited company, and is based around the tax you have to pay, which is then dependant on how much income the property will bring in addition to any other source of income you have.

Your only income

If the property you plan to buy is your only source of income then it does make sense to purchase in your own name.

Firstly, if the rental income is going to be less than £12,570 per annum then you will be tax free and all the money goes straight into your pocket. This scenario may be the case in couples where 1 earns a salary and the one buying the property does not therefore, they may as well have it in their own name.

Even if your income rental is over this threshold basic income tax is all the way up to £50,271. Which should narrowly beat corporate tax as you still have your tax-free allowance of £12,570.

Simpler set-up and management

Setting up a company if you’re not going to benefit in terms of tax is a lot more complicated for your tax returns. As an individual you will only need to declare the additional income, no other papers, documents, or yearly filing is needed.

Mortgages

The difficulty of getting a good mortgage can vary depending on the market. But as a private individual buy-to-let applicant you may find it easier to get a better rate. Overall, you should get lower rates and have more choices.

Dividends Taxation

If you invest through a company and wish to take income you will likely take a dividend, but you then must pay dividends tax on this as your transfer the funds over.