We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Pay tax on lodgers?
compact101
Posts: 12 Forumite
Hi sorry if this has been asked before.
Hyperthetically (of course)
If I own a house with someone else and 2 of our friends are staying with us and paying rent, do we have to register it, or pay tax on it?
We mentioned the possibility of moving a friend in when we got the mortgage and they seemed ok about that.
All info welcome cheers
Hyperthetically (of course)
If I own a house with someone else and 2 of our friends are staying with us and paying rent, do we have to register it, or pay tax on it?
We mentioned the possibility of moving a friend in when we got the mortgage and they seemed ok about that.
All info welcome cheers
0
Comments
-
Yes, all rental income from lodgers is taxable and you must declare it using self assessment return. You can off set a proportion of the household expences against tax or opt for the set allowance of £4250 pa using the "rent a room" scheme. The deadline for 2007-2008 tax year is 31 January 2009 after which penalties apply.
It is also important that you make sure your household insurance covers you for having lodgers, otherwise if your house burns down they will not pay out.0
This discussion has been closed.
Categories
- All Categories
- 346.1K Banking & Borrowing
- 251.2K Reduce Debt & Boost Income
- 451.1K Spending & Discounts
- 238.2K Work, Benefits & Business
- 613.3K Mortgages, Homes & Bills
- 174.5K Life & Family
- 251.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards