Another reason these new upstart BTLs don't inform anyone, is that if they can claim residence for a while on the property, then it is established as their home and then when they convert to letting they can claim capital gains relief (ie no tax for first three years and then a reduced amount for a further 2 I believe it is). So its a tax avoidance dodge, and our landlady is on it big time....plus we know her lender...tis the same as ours :-) easy for them to check in that case, they will have two different names residing at the one address...but we'll have council tax bills to back up our claim of residency....we WILL be informing the bank and others when we leave, I assure you.
laurejon, on Dec 5 2004, 07:33 AM, said:
Key priorities in all businesses are
Hmm, these may make YOU money but...
don't know the ins and outs of this
2. Dont use your own money
This is obvious if you can get away with it, which is easier said than done
3. Dont secure your own personal assets on the business
once again, obvious (maybe this is where ltd comes into it, creditors can't come after the directors personal wealth...even if they've bled the company dry!)
4. Pay your bills as late as possible
This is one of the biggest headaches for small businesses, and forces many to go under. Late payment of bills to new start companies which don't have much spare capital to pay for these periods and chase the late payers. Only for a few pounds extra interest payments. This is an extremely selfish practise which only goes to show the nastiness of those carrying it out
5. Tax avoidance at every corner
And who ends up paying for all this avoided tax? The rest of us normal citizens. By not paying up tax you are preventing money going into much needed public services. Another socially irisponsible practise which should be universally despised rather than praised for its "cleverness"
6. Dont ever...ever make a profit
Won't ever get any backing if you ever need it...you never know, your business might just hit a rocky patch, and if you've bled it for all it was worth in the good times, then when bad times come there will be nothing in the kitty to see you through, and no-one will be willing to lend money to a company which hasn't made a penny of profit in all its past years of trading.
Maybe this is why so many small companies go under...bad advice from greedy irrisponsible "business guru's"
With business running like that, its no wonder the western world is going to the dogs and why we get boom and bust. You see, Capatilism fuels this kind of greed and manipulation to the detriment of others, and ultimately to the system. Pure capatilism may work, but its run by people who are too selfish to let it run its course so , like every other system of business or government, it will ultimately fail.
What has happened to the good old days of a gentlemans agreement.
Topher bear has left the building.