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  • FIRST POST
    • teamgb
    • By teamgb 14th Jul 17, 8:44 AM
    • 44Posts
    • 41Thanks
    teamgb
    Does rental income effect ESA.
    • #1
    • 14th Jul 17, 8:44 AM
    Does rental income effect ESA. 14th Jul 17 at 8:44 AM
    Will a rental income of £450 a month effect contribution based ESA. The property will not have a mortgage. Thank you.
Page 1
    • *~Zephyr~*
    • By *~Zephyr~* 14th Jul 17, 9:28 AM
    • 576 Posts
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    *~Zephyr~*
    • #2
    • 14th Jul 17, 9:28 AM
    • #2
    • 14th Jul 17, 9:28 AM
    Yes. You must declare the income and your ESA will probably stop.

    You must also tell HMRC you are receiving money from property and they will require you to complete an annual Self Assessment tax return and pay tax on the rental income, so you need to remember to keep money aside to pay your tax bill each year.

    Also, you must research your legal responsibilities as a Landlord. You are effectively going into business and should treat it as such.

    Someone will post G_M's excellent guide to Landlord duties/responsibilities shortly. Read it, it will keep you on the right side of the law.
    • pmlindyloo
    • By pmlindyloo 14th Jul 17, 9:43 AM
    • 10,650 Posts
    • 12,538 Thanks
    pmlindyloo
    • #3
    • 14th Jul 17, 9:43 AM
    • #3
    • 14th Jul 17, 9:43 AM
    Yes. You must declare the income and your ESA will probably stop.

    You must also tell HMRC you are receiving money from property and they will require you to complete an annual Self Assessment tax return and pay tax on the rental income, so you need to remember to keep money aside to pay your tax bill each year.

    Also, you must research your legal responsibilities as a Landlord. You are effectively going into business and should treat it as such.

    Someone will post G_M's excellent guide to Landlord duties/responsibilities shortly. Read it, it will keep you on the right side of the law.
    Originally posted by *~Zephyr~*
    Contribution based ESA is not means tested. The only income that affects it are pensions.
    • *~Zephyr~*
    • By *~Zephyr~* 14th Jul 17, 9:48 AM
    • 576 Posts
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    *~Zephyr~*
    • #4
    • 14th Jul 17, 9:48 AM
    • #4
    • 14th Jul 17, 9:48 AM
    Contribution based ESA is not means tested. The only income that affects it are pensions.
    Originally posted by pmlindyloo


    Thanks for the correction pmlindyloo.

    The rest of my post stands true though
    • theartfullodger
    • By theartfullodger 14th Jul 17, 11:16 AM
    • 8,890 Posts
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    theartfullodger
    • #5
    • 14th Jul 17, 11:16 AM
    • #5
    • 14th Jul 17, 11:16 AM
    Yes, inform ESA - but as you have a rented property any equity in it will be classed as "savings" and, if over £16k, you would/should never have been entitled to ESA, See
    https://www.gov.uk/employment-support-allowance/eligibility

    As you say it will not have a mortgage presumable way over £16k equity & if you are planning on buying it you must have, I assume, significantly over £16k savings (or a gift coming..) now.

    If I've misunderstood, apologies!
    Last edited by theartfullodger; 14-07-2017 at 11:24 AM.
    • antrobus
    • By antrobus 14th Jul 17, 11:24 AM
    • 15,042 Posts
    • 21,372 Thanks
    antrobus
    • #6
    • 14th Jul 17, 11:24 AM
    • #6
    • 14th Jul 17, 11:24 AM
    Yes, inform ESA - but as you have a rented property any equity in it will be classed as "savings" and, if over £16k, you would never have been entitled to ESA, See
    https://www.gov.uk/employment-support-allowance/eligibility
    Originally posted by theartfullodger

    "there is no income and savings test for contributory ESA"

    http://www.entitledto.co.uk/help/employment-and-support-allowance-contribution-based
    • theartfullodger
    • By theartfullodger 14th Jul 17, 11:26 AM
    • 8,890 Posts
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    theartfullodger
    • #7
    • 14th Jul 17, 11:26 AM
    • #7
    • 14th Jul 17, 11:26 AM
    Apologies, Antrobus is correct, I'm wrong, sorry, thanks for the correction.
    • teamgb
    • By teamgb 14th Jul 17, 6:02 PM
    • 44 Posts
    • 41 Thanks
    teamgb
    • #8
    • 14th Jul 17, 6:02 PM
    • #8
    • 14th Jul 17, 6:02 PM
    Thank you for all your replies. Thanks to pmlindyloo and antrobus for the answers I was hoping for. Any tax due will be paid.
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