Do i Self Assess or create a new business?

Family.Guy_2

Hi all!

Before i start, i'd like to thank anybody who can give me some advice!! And please forgive my ignorance about tax.

This is my situation-
Currently i am purchasing a Buy-To-Let property, and i also have another BTL property. I am in full time employment and pay the higher rate of tax PAYE. One house is in my sole name, the new one will be joint with my wife.

Now....would it be better for me to do a Self Assessment tax return or to register the 2 properties as a BTL business? How does it work when there are joint owners with SA?

I've only recently started to rent the first house out, hence my naivety, and have only ever had to pay tax via PAYE.

Thanks once again.

Family.Guy

chrismac1

The simplest way is to include the taxable profits 100% on your own property on a self-assessment return. The one you own with your wife the taxable profits should be 50% on her SA return and 50% on yours unless you elect to split the beneficial interest differently. For the second one, tick the box marked "Is this a property owned jointly with someone else?"

Family.Guy_2

Thank you for the above post! That goes a long way in helping me understand what to do. Cheers ;-)