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  • FIRST POST
    • Turtle1
    • By Turtle1 8th Oct 17, 10:14 AM
    • 2Posts
    • 1Thanks
    Turtle1
    Paying household bills?
    • #1
    • 8th Oct 17, 10:14 AM
    Paying household bills? 8th Oct 17 at 10:14 AM
    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?
Page 1
    • Mojisola
    • By Mojisola 8th Oct 17, 10:16 AM
    • 28,348 Posts
    • 72,127 Thanks
    Mojisola
    • #2
    • 8th Oct 17, 10:16 AM
    • #2
    • 8th Oct 17, 10:16 AM
    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?
    Originally posted by Turtle1
    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.
    • Housing Benefit Officer
    • By Housing Benefit Officer 8th Oct 17, 11:04 AM
    • 2,386 Posts
    • 4,242 Thanks
    Housing Benefit Officer
    • #3
    • 8th Oct 17, 11:04 AM
    • #3
    • 8th Oct 17, 11:04 AM
    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?
    Originally posted by Turtle1
    No because it is housekeeping money.
    These are my own views and you should seek advice from your local Benefits Department or CAB.
    • Mojisola
    • By Mojisola 8th Oct 17, 12:21 PM
    • 28,348 Posts
    • 72,127 Thanks
    Mojisola
    • #4
    • 8th Oct 17, 12:21 PM
    • #4
    • 8th Oct 17, 12:21 PM
    Ok, so what if I was to 'gift' them the money every fortnight? Which they would put towards paying the bills?
    Originally posted by Turtle1
    Why would you want to complicate things by 'gifting' them money?
    • Turtle1
    • By Turtle1 8th Oct 17, 12:27 PM
    • 2 Posts
    • 1 Thanks
    Turtle1
    • #5
    • 8th Oct 17, 12:27 PM
    • #5
    • 8th Oct 17, 12:27 PM
    Why would you want to complicate things by 'gifting' them money?
    Originally posted by Mojisola
    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.
    Last edited by Turtle1; 08-10-2017 at 12:37 PM.
    • Bananas123
    • By Bananas123 8th Oct 17, 12:45 PM
    • 293 Posts
    • 123 Thanks
    Bananas123
    • #6
    • 8th Oct 17, 12:45 PM
    • #6
    • 8th Oct 17, 12:45 PM
    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)
    • dippy3103
    • By dippy3103 8th Oct 17, 12:46 PM
    • 1,722 Posts
    • 2,592 Thanks
    dippy3103
    • #7
    • 8th Oct 17, 12:46 PM
    • #7
    • 8th Oct 17, 12:46 PM
    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.
    • nannytone
    • By nannytone 8th Oct 17, 4:21 PM
    • 12,193 Posts
    • 18,101 Thanks
    nannytone
    • #8
    • 8th Oct 17, 4:21 PM
    • #8
    • 8th Oct 17, 4:21 PM
    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)
    Originally posted by Bananas123
    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 expired
    • Owain Moneysaver
    • By Owain Moneysaver 8th Oct 17, 6:33 PM
    • 7,505 Posts
    • 7,923 Thanks
    Owain Moneysaver
    • #9
    • 8th Oct 17, 6:33 PM
    • #9
    • 8th Oct 17, 6:33 PM
    Would the regular cash payments into their account count as taxable income?
    Originally posted by Turtle1
    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.
    • Mojisola
    • By Mojisola 8th Oct 17, 6:36 PM
    • 28,348 Posts
    • 72,127 Thanks
    Mojisola
    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).
    Originally posted by Owain Moneysaver
    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.
    • Darksparkle
    • By Darksparkle 8th Oct 17, 6:47 PM
    • 4,607 Posts
    • 2,907 Thanks
    Darksparkle
    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).”
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