Business vs Personal Account

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  • Business vs Personal Account

    After living in my current home for the past 3/4 years I have decided to rent it out for holiday lets over the summer.

    My mortgage for the property is currently taken out of my personal account (which has the benefit of a large overdraft) and I have just opened a business account (with no overdraft facility) to begin the lets.

    Once I start accepting payments, could I keep the mortgage being taken from my personal account (to take advantage of the overdraft facility if necessary) and still deduct the mortgage payments (interest only mortgage) from my annual tax bill and show a mortgage statement at the end of the year as proof or would I have to switch it to the business account to show all income and expenditure for the property from one account?

    Also, if I am paying for cleaning services etc before I have received any holiday payments, would I have to pay cash into the business account and then use the card to pay for the expense or could I just pay cash and keep the receipt to show at the end of the year?

    Thankyou

  • #2
    dont think your mortgage company will be very happy with your idea!
    Unshackled by the chains of idle vanity, A modest manatee, that's me

    Comment


    • #3
      My mortgage company has been told and I have paid a fee to them and taken out appropriate insurance to allow me to do it.

      Do you have any thoughts about the questions above?

      Comment


      • #4
        Don't worry it's just islandgirl being as helpful as usual...

        1. Yes

        2. Just pay cash and keep the receipt.

        Comment


        • #5
          as opposed to Telometer being rude as usual (and highly skilled at wrongly accusing people of all sorts of strange things )
          I know which I prefer....!!!
          still his little digs make him happy and amuse me (and no doubt other who have been around a while) no end, so enjoy, Mr T!
          Unshackled by the chains of idle vanity, A modest manatee, that's me

          Comment


          • #6
            Originally posted by Telometer View Post
            Don't worry it's just islandgirl being as helpful as usual...

            1. Yes

            2. Just pay cash and keep the receipt.
            Thanks Telometer, really appreciate your help.

            Comment


            • #7
              genuine question - maybe Mr T can help - can it be a holiday let if it is not available for a minimum number of weeks per year? Does the issue of whether or not it is a holiday let matter for the issues the OP has?
              Unshackled by the chains of idle vanity, A modest manatee, that's me

              Comment

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