ONYX

ACCOUNTANTS
and Business Advisors

Limited Company
Property Structure

t
INTRODUCTION

Onyx are specialists in providing accounting and

financial services for businesses in the Serviced
Accommodation Industry.

Whether you are in the Rent to Rent sector, you own

your own units, or you are in Serviced
Accomodation Management we have the expertise
to ensure you and your operation runs in the most
tax efficient manner whilst covered from exposure.

This document outlines the different company

structures we we can set in place depending on
your circumstances and at what stage of your SA
business journey you are on.

Whether you are starting from scratch or are

already established we have the expertise to help
you plan and scale your portfolio whilst ensuring
you are complying with HMRC regulations and
reporting requirements every step of the way.
 STRUCTURE 2 -
SA MANAGEMENT CO INTRODUCED
Holding Co - Where monies can be transferred up from the SA
Co and Management Co to create wealth in Holding Co to re-
invest in purchasing property. Equally money can be
transferred down into the SA Co or Management Co if needed.

SA Co - All Booking Revenue and SA

costs will be traded through this
company.This company will have
VAT and PAYE. All utility and
HOLDING CO - TBC
accommodation costs incurred for
servicing book revenue will be
accounted for here.

SA TRADING CO MANAGEMENT CO
SA Management Co - This company
will charge a management fee to
other properties it manages.

LEASE CO LEASE CO
Lease Co - Simple Lease Holding Companies where leases with Landlords
are held and they sublet to SA Trading Co. Multiple lease co's may be
created if there is more than one Landlord with multiple units.
THE 5 DIFFERENT COMPANY TYPES
AND THEIR PURPOSE
Our company structures are usually made up of a combination
of 5 company types. Not every structure will need all 5
companies and some may be introduced at different points of
your business growth.

HOLDING CO
A 'holding company' is typically used for when a client
wants to build personal wealth and usually sits at the
head of the structure. In this instance the wealth
generated is usually used by the client to purchase their
own properties out right. Profits from a company or
companies sat below a holding company can be
transferred up into the holding co without incurring any
tax liabilities. This is especially useful if you have a
business partner(s) and you would like to take money out
of a trading company you own together without incurring
tax liabilities. Another instance would be if you would like
to make other investments outside of the trading
company the profits were made in to limit exposure to
your new investments. Equally you can pay money
downwards from the Holding Co into any of the
businesses below. Multiple businesses can sit under a
holding company and it doesn't have to be related to this
current property structure, therefore if you own other
businesses outside of serviced accommodation, they can
also sit under the Holding Co for the same reasoning.
 SA TRADING CO
A 'Serviced Accommodation Trading Company's' purpose
is to hold the 'trading activity' of the business. It sits in
the middle of the holding co and the lease co. This
company is where your booking revenue would come into
and all of your over heads such as management fee's,
cleaning fee's and rent would come out of. If you are in
the rent-to-rent sector this company would re-rent the
property off the lease co below where the inital rental
agreement where with the landlord is held. This method
protects profits made in this company should anything go
wrong with a rental agreement or landlord
disagreements.
LEASE CO
A 'Lease Company' is put in place purely to hold the rental
agreement between the client and the landlord and sits
underneath the SA Trading Co. We typically suggest to
create a new lease co per landlord, so if you have
multiple units with one landlord, one lease co should
suffice. Should an issue occur with one lease, holding all
leases in one company could leave your other leases
exposed. Having multiple lease companies will protect
each individual lease, and you may also benefit from
business rates relief per lease company. Lease co’s also
aid in qualifying for the TOMS VAT scheme where you
have an ‘unfurnished lease’. To qualify for the TOMS
scheme you must have a furnished lease, therefore
anything that comes unfurnished we recommend
furnishing within the Lease Co prior to renting it back to
your SA co . This will then allow it to qualify for TOMS
scheme relief.
 SA MANAGEMENT CO
A 'Serviced Accommodation Management Company' is for
clients who manage other individuals units on their
behalf for a fee meaning it will not be applicable to
everyone. This company will sit below the holding co
allowing for profits to be transferred up into the holding
co without incurring any tax liabilities.
 FEES AND SERVICES
Company Structure Set-up ONE OFF FEE
Creation of 3 companies for 'basic' company structure 1
Creation of group structure
Initial advice on set-up
Fees:

£750.00 + VAT
Fees are subject to increase if more company creations are
required for a more complex structure like structure 2 or 3

Fees are subject to decrease if you already have existing

companies which can be used in the structure

Holding Co
Services:
Statutory Compliance
Corporation Tax

Fees:

Statutory accounts with no property within company:

£300.00 + VAT
Fees will increase to £650.00 + VAT with 1 property introduced to
holding company.
Fees will increase by £300.00 + VAT per new property introduced.
 FEES AND SERVICES CONTINUED
SA Trading Company
Services:
Statutory Compliance
Corporation Tax
Self Assessment for 1 Director
Payroll for 1 Director
VAT returns (if applicable)

Fees for SA Co with UP TO 3 SELF MANAGED UNITS:

PRE-VAT REGISTRATION

£1,200.00 + VAT
POST-VAT REGISTRATION

£2,000.00 + VAT
Fees for SA Co with UP TO 3 UNITS MANAGED BY AN
EXTERNAL MANAGEMENT COMPANY:
PRE-VAT REGISTRATION

£950.00 + VAT
POST-VAT REGISTRATION

£1,750.00 + VAT
Fees will increase by £300 + VAT per property which is serviced
through this company after the first 3 units.
 FEES AND SERVICES CONTINUED
Lease Co
Statutory Compliance
Corporation Tax

Fees:
Statutory accounts with no lease within company:

£200.00 + VAT
Fees are subject to increase to £400.00 + VAT once 1 lease is
introduced

Fees are subject to increase by £200.00 + VAT per new lease

introduced

Management Co

Fees to be confirmed on a case by case basis

At Onyx our mission is to help you to understand your finances
at every level with a very personal tailored approach. We do
not consider ourselves as the classic belt and braces
accountant that you see once a year to simply hand over
paperwork. We are here to support you 365 days a year, not
only with the classic accountancy services but also with a
range of business support services which would offer
considerably benefit.

If you feel your business would benefit from the services Onyx
has to offer, we can arrange for you to have a free no
obligation consultation with a member of the team.

To arrange your free no obligation consultation please call us

on 0121 753 5522 ext 202 or 01902 759 800 ext 202, or
alternatively you can email us at enquiries@onyx.accountants

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