Accountant advising tenant to rent through Ltd company?

Accountant advising tenant to rent through Ltd company?

0:01 AM, 4th October 2024, About 8 hours ago

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Hi, my partner’s tenant is currently paying mates rates [£500 below market] on a personal AST. The tenant is a friend and is 12 months into her second 12 months AST. She is paying some £500 below the local market rent as a favour.

Recently, her accountant advised her to start paying the rent through her Ltd company. Her business is finding property development opportunities and then financing the construction. Her AST prohibits the running of a business from the property.

I’m not sure this is such a good idea for all sorts of reasons, but I would appreciate the views of the Property118 community.

Thanks,

Lou

 


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