Ask the experts...Q. Do we need a separate bank account for the income from our holiday let property?
A. The Helpful Holidays team say:
The best person for financial advice is, of course, your accountant. However, in general terms, putting your income from your holiday home in your current account is acceptable, but it might not be the best place for it. It is absolutely essential to keep an accurate account of income and expenditure relating to your holiday property. All income has to be declared to the Inland Revenue, hence the need for tidy, accurate accounts, so keeping such income in a designated account with a separate cheque book could be easier to manage. Also, if you have other income taxed on a PAYE basis, keeping the monies separate helps avoid confusion.