Let Property: Tax and Savings Acc

[Reputer459]

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.

 

[Scalloway]

I don't want to declare self-assessment

You have no option not to declare the income.

 

[KAC]

@Reputer459 What you are proposing is illegal as it would be tax evasion. Hopefully no-one on here will give you any advice

 

[Rawlinson Pryde]

HMRC have many ways to find out and when they do (if you have not declared your income), you will probably face a penalty of 50% to 100% of the tax due for a deliberate and concealed offence from failing to declare. That would potentially double the amount you pay before applying interest.

https://assets.publishing.service.g...loads/attachment_data/file/877263/CC-FS11.pdf

As mentioned above, declare your profits and pay your tax.

 

[WaveJumper]

Can't believe someone would post this ............. as above it's tax evasion and illegal

 

[NicoJ]

Hopefully a joke post but to answer the question of how would HMRC find out? Did you not consider that posting on a PUBLIC forum might give them a clue?

 

[Ozzy]

As per the rules for these forums, posting illegal activity is not allowed. Locking this thread as you've got your answer @Reputer459, what you are asking is not legal.