Joint basic bank account - financial link

moldog

I rent out a property with 3 other owners (my mum and two sisters) we are wanting a joint bank account however I have really bad credit (currently trying to improve) would this become a financial link and affect their excellent credit? I'm not sure how else to do it if it does, tax wise it needs doing so any suggestions please?


Edit to add - property is mortgage free

Anthorn

moldog wrote: »

I rent out a property with 3 other owners (my mum and two sisters) we are wanting a joint bank account however I have really bad credit (currently trying to improve) would this become a financial link and affect their excellent credit? I'm not sure how else to do it if it does, tax wise it needs doing so any suggestions please?


Edit to add - property is mortgage free

Don't quote me on this but you are probably looking at opening a company/business account and not a personal joint account. In a joint account your bad credit would affect the other joint account holders but in the case of a business account, probably not.

colsten

Joint accounts do create financial relationships. You are also unlikely to find a personal account that allows more than two account holders.

When you say "tax wise it needs doing", what do you mean by that? Each of you will be responsible for tax on their own income.

Why do you want an account to which all 4 have access?

moldog

colsten wrote: »

Joint accounts do create financial relationships. You are also unlikely to find a personal account that allows more than two account holders.

When you say "tax wise it needs doing", what do you mean by that? Each of you will be responsible for tax on their own income.

Why do you want an account to which all 4 have access?

3 of us are self employed so the income has to be declared I presume? Because the income is split 4 ways if only 2 have it in their names then it'd be seen that they were only the landlords so their income to declare would be more wouldn't it when in reality it would be half?

colsten

Assuming you are splitting the proceeds, then each of you has a taxable income from the property. Whether and how much each person will need to pay in tax depends on their total income.

Tax isn't based on what happens in your bank accounts but on what you declare to the HMRC. HMRC might request further information / evidence for any tax declaration made.

It should be easy enough to draw up an agreement between the 4 of you that details how the income from the property is apportioned (and how costs for repairs etc are handled). This agreement can be provided to the HMRC if they need to see it.

moldog

colsten wrote: »

Assuming you are splitting the proceeds, then each of you has a taxable income from the property. Whether and how much each person will need to pay in tax depends on their total income.

Tax isn't based on what happens in your bank accounts but on what you declare to the HMRC. HMRC might request further information / evidence for any tax declaration made.

It should be easy enough to draw up an agreement between the 4 of you that details how the income from the property is apportioned (and how costs for repairs etc are handled). This agreement can be provided to the HMRC if they need to see it.

Thank you, it looks like we might possibly need a business account but finding one without a financial link it a must, I don't want to ruin everyones credit