Paying household bills?
Turtle1
Posts: 3 Newbie
I’m in receipt of income related ESA and living at home with parents who are nearing and over retirement age respectively but both are still working.
I pay them ‘board’/rent' every fortnight in cash to help with household bills, but I was wondering if I could start paying my board money directly into their account since the majority of their monthly bills are coming from standing orders? (Electric, gas, water, telephone/internet, insurance, council tax etc). I personally wouldn’t want to switch some those standing orders to my account due to the uncertainty of future reassessments/no income/being found fit to work etc.
Would the regular cash payments into their account count as taxable income? Would the bank get suspicious of regular cash deposits and contact the HMRC?
Would I get penalised by the DWP for paying cash into my parents account every fortnight? Even if it is only to help contribute to the bills?
I pay them ‘board’/rent' every fortnight in cash to help with household bills, but I was wondering if I could start paying my board money directly into their account since the majority of their monthly bills are coming from standing orders? (Electric, gas, water, telephone/internet, insurance, council tax etc). I personally wouldn’t want to switch some those standing orders to my account due to the uncertainty of future reassessments/no income/being found fit to work etc.
Would the regular cash payments into their account count as taxable income? Would the bank get suspicious of regular cash deposits and contact the HMRC?
Would I get penalised by the DWP for paying cash into my parents account every fortnight? Even if it is only to help contribute to the bills?
0
Comments
-
I’m in receipt of income related ESA and living at home with parents who are nearing and over retirement age respectively but both are still working.
I pay them ‘board’/rent' every fortnight in cash to help with household bill
Would the regular cash payments into their account count as taxable income? Would the bank get suspicious of regular cash deposits and contact the HMRC?
Would I get penalised by the DWP for paying cash into my parents account every fortnight? Even if it is only to help contribute to the bills?
My son set up a standing order and paid his 'keep' into our bank account.
It didn't affect us or him (HMRC or DWP) - it's a common arrangement.0 -
I’m in receipt of income related ESA and living at home with parents who are nearing and over retirement age respectively but both are still working.
I pay them ‘board’/rent' every fortnight in cash to help with household bills, but I was wondering if I could start paying my board money directly into their account since the majority of their monthly bills are coming from standing orders? (Electric, gas, water, telephone/internet, insurance, council tax etc). I personally wouldn’t want to switch some those standing orders to my account due to the uncertainty of future reassessments/no income/being found fit to work etc.
Would the regular cash payments into their account count as taxable income? Would the bank get suspicious of regular cash deposits and contact the HMRC?
Would I get penalised by the DWP for paying cash into my parents account every fortnight? Even if it is only to help contribute to the bills?
No because it is housekeeping money.These are my own views and you should seek advice from your local Benefits Department or CAB.0 -
Why would you want to complicate things by 'gifting' them money?
Ah sorry for the mix up! I thought the poster above was saying 'no I wasn't allowed to deposit money into my parents account because it's housekeeping money' - rather than the intended 'no there's no issue because it's housekeeping money'. Please ignore the previous post which I deleted.
0 -
hello, no it's fine to transfer them money for bills.
the only thing to bare in mind is that you will be increasing your parents "capital" by the amount you contribute (but that probably won't make a difference due to them both working, but maybe something to bare in mind, if they are sorting out their finances for retirement etc)0 -
If you are setting up a standing order it might be a good idea to make the reference "turtle - keep" that way it's clear if they ever do send in their bank statements.0
-
Bananas123 wrote: »hello, no it's fine to transfer them money for bills.
the only thing to bare in mind is that you will be increasing your parents "capital" by the amount you contribute (but that probably won't make a difference due to them both working, but maybe something to bare in mind, if they are sorting out their finances for retirement etc)
STOP giving wrong advice. if you do not KNOW the answer, then stop making things up!
money only becomes capital when it is past the timescale for which that money was paid.
so paying £50 a week for example, into someones account doesn't raise their capital by £50.
it only counts AFTER the period for that payment has expired0 -
Would the regular cash payments into their account count as taxable income?
Possibly, but your parents will be able to claim the Rent A Room allowance, which allows an extra £7,500 a year tax-free income (or £3,750 each if the allowance is split between two parents).A kind word lasts a minute, a skelped erse is sair for a day.0 -
Owain_Moneysaver wrote: »Possibly, but your parents will be able to claim the Rent A Room allowance, which allows an extra £7,500 a year tax-free income (or £3,750 each if the allowance is split between two parents).
The OP isn't paying rent - the Rent a Room doesn't apply.
Paying keep towards the bills isn't counted as income so it isn't taxable - it's just the same as one of a couple transferring money into their partner's account to pay the household bills.0 -
http://www.acumen-accounting.co.uk/landproperty/subsheet-rentaroom.html
“There appears to be nothing in the legislation to prevent the Rent-a-Room exemption being used for connected persons such as family members, so if your son or daughter pays you house-keeping money this is not subject to tax unless it exceeds the exempt amount - and even then only to the extent that it exceeds the cost of household expenditure (anything less can be treated as a contribution to the family budget rather than rental income).”0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards