My wife and I own 3 holiday lets. She manages the business and is responsible for all activities from advertising, website, lettings, etc. I help out occasionally with bed making and doing minor repairs.
To date we have split the income 50:50 because we thought we had to as the lets are owned 50:50 in joint names. However we have realised that it would be better for her to take 100% of the income as she has no other income. I have a pension and pay standard rate tax (PAYE).
We have found this link:-
http://www.hmrc.gov.uk/manuals/tsemmanual/TSEM9820.htm
It appears from this that we can apportion all the income to her as she does the 'work'.
Are we correct and can we just 'do it' without advising HMRC in any way?
Does the above also apply to residential lets as we are about to let our current home and move into a recent purchase when renovated.
To date we have split the income 50:50 because we thought we had to as the lets are owned 50:50 in joint names. However we have realised that it would be better for her to take 100% of the income as she has no other income. I have a pension and pay standard rate tax (PAYE).
We have found this link:-
http://www.hmrc.gov.uk/manuals/tsemmanual/TSEM9820.htm
It appears from this that we can apportion all the income to her as she does the 'work'.
Are we correct and can we just 'do it' without advising HMRC in any way?
Does the above also apply to residential lets as we are about to let our current home and move into a recent purchase when renovated.