Firstly, has he been sterilised? If not, take him asap to be done as this will deffinately help with the marking problem. Secondly, NEVER hit your dog as all this will do is make him scared of you, which it already sounds as if he is by the way you describe his reaction. I promise you he does not know that the pee was the wrong thing to do, all he knows is you are cross with him so he is reacting to your anger when he sulks off. NEVER shout or smack him, ignore the peeing in the house, clean it up with some toilet paper and take the paper outside to the spot you want him to pee at and stick it into the ground. Spray some surgical spirits over the spot and then clean with sunlight liquid. Never use anything with amonia in it as this smells like your dogs pee and he will just go back to the same place.
Reward him with a treat or just a love when he does it outside. Soon he will realise that it is worthwhile peeing outside as that is where he gets a lot of attention as opposed to inside where he is ignored. If the above does not work after a couple of weeks of being consistant please call me on 0798837566.

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