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Setting up a business involves complying with a range of legal requirements. Find out which ones apply to you and your new enterprise.

Every business needs to be aware of its obligations under minimum wage and equal pay laws, as well as recent pensions auto-enrolment changes.

What particular regulations do specific types of business (such as a hotel, or a printer, or a taxi firm) need to follow? We explain some of the key legal issues to consider for 200 types of business.

While poor governance can bring serious legal consequences, the law can also protect business owners and managers and help to prevent conflict.

You must comply with legal restrictions on employees' working hours and time off, or risk claims, enforcement action and even prosecution.

The right employment policies are an essential part of effective staff management. Make sure any policy is clear and well communicated to employees.

Whether you want to raise finance, join forces with someone else, buy or sell a business, it pays to be aware of the legal implications.

While sick employees need to be treated fairly, you need to ensure that 'sickness' is not being used as cover for unauthorised absence.

Marketing matters. Marketing drives sales for businesses of all sizes by ensuring that customers think of their brand when they want to buy.

Most pregnant employees are entitled to maternity leave and maternity pay, while new fathers are entitled to paternity leave and paternity pay.

Commercial disputes can prove time-consuming, stressful and expensive, but having robust legal agreements can help to prevent them from occurring.

As well as undermining morale, illegal discrimination can lead to workplace grievances. Employee discrimination is covered by the Equality Act 2010.

Whether your business owns or rents premises, your legal liabilities can be substantial. Commercial property law is complex, but you can avoid common pitfalls.

Home, remote and lone workers are becoming increasingly commonplace. Key issues include communication and how to manage and motivate people remotely.

With information and sound advice, living up to your legal responsibilities to safeguard your employees, customers and visitors need not be difficult or costly.

The right approach to consulting with and providing information to your employees can improve employee motivation and performance.

As information technology continues to evolve, legislation must also change. It affects everything from data protection and online selling to internet policies for employees.

Disciplinary and grievance issues can be a major burden to employers. Putting in place and following the right procedures is essential.

Following the right dismissal and redundancy procedures helps protect your business and minimise the risk of a legal dispute at tribunal.

Intellectual property (IP) isn't solely relevant to larger businesses or those involved in developing innovative new products: all products have IP.

Employment tribunal claims are a worrying prospect for any employer. A tribunal case is a no-win situation – even if the claim is unjustified.

Knowing how and when you plan to sell or relinquish control of your business can help you to make better decisions and achieve the best possible outcome.

From bereavement, wills, inheritance, separation and divorce to selling a house, personal injury and traffic offences, learn more about your personal legal rights.

Transfer a property to a company

Since 6 April 2020, the income tax relief landlords can claim on residential property finance costs has been restricted to the basic rate of income tax. This means higher-rate taxpayers can no longer deduct all their finance costs - such as mortgage interest - from their property income. However, the rules don’t apply to limited companies

Should I transfer my property into a limited company?

At first glance, transferring your property seems sensible, especially as any net profit will be taxed at the lower corporation tax rates of 19% (2021).

But if you do this, you may also find yourself landed with unnecessary tax bills and costs.

If you transfer the property from yourself to a company (effectively the company buys the property):

  • the company could be liable to pay stamp duty
  • you may have to pay up to 28% capital gains tax (CGT) on the difference between your original purchase price and your sale price

These two tax drawbacks could potentially wipe out any savings from claiming full interest tax relief on your finance costs.

Disadvantages of transferring a property into a limited company

You also need to bear in mind:

  • The mortgage. The company that will own the property will probably need a commercial mortgage, which is likely to charge a higher interest rate than your current mortgage.
  • The ownership. Once the property is in a limited company, it is owned by the company. If something happens to the company, all its assets will be exposed including the property.
  • The future. When you eventually sell the property, the money from the sale will go into the company. The company will pay corporation tax on the profits, and the balance of the money from the sale will need to be taken out of the company - either as salary, dividends or by other means. You'd then pay additional tax on that income.

Advantages of transferring a buy-to-let into a limited company

There are some situations where transferring to a limited company could make sense:

  • If you're buying a new property, doing this through a limited company could be a good idea.
  • If you currently run your buy-to-let through a partnership, then transferring into a limited company might reduce the tax burden.
  • If you want to leave your buy-to-let properties to your children, you could consider a Family Investment Company as an alternative to a trust.

As a general rule, if you own one or two buy-to-let properties, transferring to a limited company doesn't make sense.

But if you've got six or more properties, it might be worth looking at how you can enjoy the benefits of a limited company.

Written by Jonathan Amponsah, founder and ceo of The Tax Guys.

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