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Where Taxpayers and Advisers Meet

Charging management fees

guardog
Posts:11
Joined:Thu Jul 03, 2014 4:58 pm
Charging management fees

Postby guardog » Wed Dec 22, 2021 2:49 pm

Hi I'm not sure of this topic has been dealt with before but apologies if it has and been answered.

I'm not at all happy with the service I am getting from y managing agent for my properties so as I am now just retired I thought that I could do this myself. However I would like to charge each of the properties with a reasonable management charge and then declare that income when received to the revenue.

Is this legal as I will be declaring this income and if not is there anyway I can charge fees without having to set up a company or register a business

Thanks in advance

G

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AGoodman
Posts:1418
Joined:Fri May 16, 2014 3:47 pm

Re: Charging management fees

Postby AGoodman » Wed Dec 22, 2021 4:43 pm

You can't literally charge yourself management fees.

You could (in theory) set up a company but it would of course need to file accounts and a corporation tax return & pay CT @ 19%. Any profits you paid yourself (as a dividend) would be subject to income tax. The company may also have regulatory requirements relating to property management (I don't know).

You don't mention why you would want to do this. You would just be swapping one form of income for another, with more admin.

guardog
Posts:11
Joined:Thu Jul 03, 2014 4:58 pm

Re: Charging management fees

Postby guardog » Thu Dec 23, 2021 11:50 am

Thanks for your response. As mentioned my managing agents are not very good and they also charge far too much I believe. Also I have just retired and want something to do so I thought why not do what my agents have been doing but hopefully much better. However I would like some recompense for doing this. I understand at the end of the day I am paying with one hand and receiving with the other but there maybe expenses etc that I can put against this receipt. Could I set myself up as a self employed agent charge the property the fee and then with what I receive put against this such things as stationery postage travel phone calls etc.

Look forward to receiving any responses

Thanks again

G


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