Declaring rental income...had no idea, help!

m_13

Buzzcut wrote: »

Hopefully it would be considered that I was single letting with an allowance of £4,250, half his rent would be mine i.e. £3,300 per year and hence I'd need to do nothing as it's under the limit. My ex however would also be getting the other half i.e. £3,300 but would be taxed fully as for any other extra income but that's not my problem.

Unfortunately not:

If you share a home and both let a room or rooms

If you are both letting furnished accommodation in your joint home, you will each be entitled to receive half of the allowance (up to £2,125 for the 2008-2009 tax year) without paying tax.

Buzzcut

...and that's what I'm stuck on. We don't "share" a home, her name is just on the deeds. Like bobby-boy says, she hasn't lived here for 2 1/2 years so can't claim under the Rent-a-room, whereas I can.....or does a joint mortgage infer joint letting even though one person permanently lives 100 miles away?

She has her own place and pays her own rent. I pay half the mortgage and the rent from my friend covers the other half, surely the only room she can let is one in her permanent place of residence i.e. not here?

poppysarah

Have I mentioned ringing the HMR&C and asking them for advice?

If your profit is £2,500 or more or you're not on PAYE

In this case you'll need to fill in a Self Assessment tax return (you may do this already, if not contact your Tax Office).


Just ring them and ask - they will tell you what you need to do and what the other party needs to do

Robert_Sterling_3

Was what really happened this:_ You had a lodger living in the flat.
He paid the money to you so that you could pass half of it to your Ex. Then as your Ex owed you money towards the mortgage you kept an appropriate amount back and sent her the rest if there was any left to send or perhaps you held on to it for any subsequent mortgage payments when she did not make her contribution?

BlameTheGame

Buzzcut wrote: »

Sorry this is off topic, but why is there a link to another website disguised as an 'edit' button in your post?

tbs624

Buzzcut wrote: »

We're talking no expenses and no food just rent, ..

[FONT=&quot]E [/FONT]xpenses = wear and tear, insurance, repairs, heating and lighting etc - you'd need to go through all relevant figures carefully before opting into rent a room.

Your GF def. can’t however claim rent a room relief, if the property has ceased to be her main residence before the lodger moved in. Does your lender know that you had a lodger, and that your GF no longer lives there? Ditto your insurance company?

tbs624

BlameTheGame wrote: »

Sorry this is off topic, but why is there a link to another website disguised as an 'edit' button in your post?

am guessing that the OP has also posted his query on another forum, and inadvertently copied the edit button when cutting and pasting here?

m_13

tbs624 wrote: »

am guessing that the OP has also posted his query on another forum, and inadvertently copied the edit button when cutting and pasting here?

Indeed he did but soon got short shrift as the forum is in Eire and spotted straightaway the £s instead of €s in his post!

This is a tricky situation not least because of the interest in the property held by the ex. I'm presuming that if the OP states that he rental income was paying her share of the mortgage in lieu of her, then her half interest in the property continues. I'm also not certain what the mortgage company would make of all this as she appears to still be on the mortgage despite not living in the property.

Buzzcut

m_13..Correct and apologies, Ctrl-A from the Irish site was the culprit.
tbs624..The One Account didn't bat an eyelid when I informed them she was moving out as long as one party was still resident. They said when we wanted to transfer the mortgage into my sole name to call back; this has now happened and it's just in my name. In fact they've also just confirmed by phone that I didn't have to tell them if a lodger moves in or out either.

hearts

This must be a wind up ;-)