hey what's up my name's samuel leeds i'm
a property investor normally when i do
videos i talk about how to make money
but a lot of people ask me about tax how
to save money
generally my rule of thumb is don't
worry about how to save money
think more about how to make money
because sometimes people worry so much
about having to pay tax i don't want to
pay tax i don't want to pay tax that
they don't pay much tax but they also
don't make much money
so generally speaking focus on making
the money however
here are five ways that you can avoid
paying
tax now when i say avoid paying tax
don't get it twisted there's a big
difference between tax
avoidance and tax evasion tax avoidance
is smart
that's when you just try and pay as
little tax as you can
that's what all businesses do and not
paying tax
normally means that you're complying to
what the government wants you to do
because by doing what they want you to
do you're actually avoiding paying tax
because they put incentives in place
evasion that's different evasion is when
you don't pay tax when actually you
should so here are the five ways
the first way is to simply claim all of
your expenses it's amazing how many
entrepreneurs
don't even claim their expenses they
don't keep their receipts
they don't know what expenses are they
don't know what they're allowed to claim
back and what they're not
i have students of mine that pay
hundreds or
thousands of pounds to do my property
investment training
and they don't even ask me for a receipt
i'm like you got the receipt right
they're saying well i don't need the
receipt i'm like no you do need the
receipt
they say why i say because when you
start making money as a property
investor
you're going to claim all of this back
because when you pay for education it's
tax deductible
and they're like really if i learn about
deal sourcing
from your company and then i start deal
sourcing and make profit i can actually
claim back and i'm like uh-huh
so that's the first thing claim all your
expenses know what our expenses and what
are not
number two in property the next big
expense is
stamp duty stamp duty every single time
you buy a house
you've got to pay stamp duty tax which
is a really annoying thing
a little way of the government getting
extra money out of you
how do you avoid paying stamp duty there
are different ways but the best way
is to buy a property that is unhabitable
buy a property that's not got a proper
kitchen
it's not got a working bathroom it's not
insulated properly and
it's not habitable when you buy a
property like that
you pay no stamp duty of course check
this out with your accountant and
solicitor when you buy the property
but check out the rules on the hmrc
website and i'm pretty sure you'll be
excited about these types of properties
the third way that they tax you is with
section 24 where they say you cannot
even claim your mortgage payments as tax
deductible the way
to get around this is when you buy a
property buy it
with in mind serviced accommodation
because when you rent out a property
with service accommodation
there are massive tax advantages and
section 24 does not apply to you
same as if you buy a property and you're
buying it through a company
section 24 tax does not apply to you
which means that you can claim a lot
more back as tax deductible
number four capital gains tax that's
when you buy a house
it appreciates in value and then you
sell the house that equity that you've
made that profit
you've got to pay tax on and that's
called capital gains tax
how do you get around that you get
around that by living
in the property when you move into a
house
and you live there you could move into
it you don't pay stamp due because it's
run down
you fix it up make it beautiful you then
sell it and
all of that profit you don't pay any tax
you do not pay capital gains tax because
you've lived there it's a little trick
it's a little tip that will get you
around capital gains tax
number five this is kind of an obvious
one but listen
don't take my word for it okay i am not
a tax advisor
i am not a tax specialist i'm not
qualified to do so i know
everything i know from my own personal
experience but my number five is
get yourself a good accountant that
understands property investment and
understands your specific business if
they understand your business
if they understand you they're going to
give you the best strategies to save tax
in your
bespoke situation so there are the top
five suggestions
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