Rent House Tax and Savings Advice
Hoping you can help or point me in the right direction.
I'm looking to rent out my property to a close friend who has temporarily moved from Leeds, we're going to sign a tenancy agreement for 18 months. He will pay me via bank transfer each month. I do not wish to register for self-assessment. He will pay me half in cash and half via BACS. I want to maximise profits.
Also, would a cash ISA or normal ISA savings account be best for receiving the funds? Or should I consider an alternative bank account, the idea being to maximise return via highest interest rate?
I've also spoken with the mortgage provider and HTB, writtem confirmation received. I was going to advertise the property, but a friend is moving for work nearby for 2 years, to be close to his gf (before considering purchasing, a trial period if you like)/and he is willing to go through right channels to sign a 18month tenancy agreement. Howeber, he want's the whole house and I need to move down south for work. The rent is £1400 a month, what I need clarity on is:
1/ I'm looking to pocked £700 in cash and £700 via bank transfer, I don't want to declare self-assessment, I am also in full-time secured work. Is there any way for HMRC to find out?
2/ I want to open a new savings account to deposit the funds from the letting of the property, but I'm ignorant and do not know what the best/high interest account is to open to maximise interest on earnings from letting. I was considering. Cash-Isa or normal Isa but not sure, also, I'm not looking to take any funds from this pot until the 18 month period of tenancy comes to an end. Thank you, I would welcome a response.