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Where Taxpayers and Advisers Meet

Rent House Tax and Savings Advice

Reputer459
Posts:1
Joined:Sun Jun 20, 2021 12:25 pm
Rent House Tax and Savings Advice

Postby Reputer459 » Sun Jun 20, 2021 12:32 pm

Hi All,

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.

Jholm
Posts:222
Joined:Mon Mar 11, 2019 4:22 pm

Re: Rent House Tax and Savings Advice

Postby Jholm » Mon Jun 21, 2021 8:32 am

If you're coming on to a forum of qualified tax advisers, telling them you don't want to declare the income (and basically asking how to get away with it), you aren't going to get the answers you like.

Jholm
Posts:222
Joined:Mon Mar 11, 2019 4:22 pm

Re: Rent House Tax and Savings Advice

Postby Jholm » Mon Jun 21, 2021 9:22 am

PS if you are involving mortgage advisers and going so far as wanting to advertise the property, you are definitely going to get caught out eventually. HMRC can make discovery assessments up to 20 years later, charge up to 100% additional tax as penalties, as well as the original tax and interest.


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