Were to start??????

[kevinhartshorn]

Hello everyone......
I want to start property development for a living. The question is, do i need to set up a business or is it better to just go and start developing a property???? Im just thinking as a buisness i could get trade accounts and claim tax back but would i have to pay buisness rates/tax. Any info on the benefits or draw backs would be a big help as im new to all this. THANKYOU.

[Dougie_tps]

Swings and roundabouts really, there are definitely advantages to running it as a business. Much of it comes down to the differences between your income tax rate (are you a higher-rate taxpayer) and the rate of Corporation tax payable on net profit.

Would you be doing most of the work yourself? Because if you're using a builder then he would be able to get trade discounts anyway.

I hope you've planned this out. I'm sure you're aware that it's a difficult time at the moment, especially if you aren't prepared for the ups and downs.

[kevinhartshorn]

Im in a low paid full time job and will be doing most of the work myself in days off and evenings. Will get lots of help from friends/family aswell. I know its not the best time to start my first development but if i can make a profit in the current climate then it should only get easyer(hopefully). Wont have the money together for a while yet anyway.
Thanks.

[Dougie_tps]

I think it's great that you're starting in development. I have to warn you though, that working a full-time job and working on a property in your spare time is really hard work! Done it myself!

As you say though, if you can make it work now, you can do it anytime. Just make sure you do your homework and plan everything out financially, legally and manually. I think that because most people are avoiding property at the moment, now might be an interesting time to make a go of it.

I'd promote my website at this point under normal circumstances, but I can't yet-haven't posted enough!