Is it possible to just let my management company keep all the rental income and then pay myself enough to cover mortgage and expenses, so that I break even for self-assessment purposes and pay corporation tax only, and then buy further properties through the company going toward?

Arthur Weller replies:
It is certainly possible to set up a management company to manage personally owned property, and charge the individual landlord a management fee. This fee can be any amount. However, HMRC will not accept a fee in excess of the normal, commercial rate. This is probably in the region of 10–15%. So the company can charge the individual whatever amount is agreed between the parties, but only 10–15% will be allowed to reduce the individual’s taxable income. Furthermore, HMRC would probably also tax the company’s profits in full.