Assured tenancy agreement

triciaP1

Hi All.
Could someone please advise me. My son has been declared bankrupt and has had to return home to live with us, today i recieved a letter from the OR's office asking me if my son has a Assured Shorthold Tenancy agreement? As he lives with us now and obviously has to pay his way. How do I answer this and how will it effect us? Does he have to have an official agreement? How or will this effect us in any way?
thank you. Confused!!!
Tricia.

Pee

I think your son is a lodger in your house. You should charge him rent and this is then dealt with for tax under the rent a room scheme. He should also make set payments for bills. You can write confirming this and the OR will be able to use that in his calculations. I would suggest £70 a week for rent and £30 a week for bills. You'll probably have lots of other suggestions to choose from.

triciaP1

Thanks Pee.
When you say rent a room scheme does that mean I have to pay tax on it?
Thanks Tricia.

Tinytim

Hi Tricia,

You do not have to pay tax on the rent a room scheme as long as the weekly rent is below a certain amount. I can't remember the exact amount, but £70 is within it.

You son does not have an assured tenancy; you can ask him to leave at any time.

mypiggybankisempty

What you are best doing is possibly setting up a Restricted Contract Lettings (landlord in occupation) I will PM you the full details as I have my agreement under this system.

triciaP1

Hi Tinytim
Thank you very much for your reply. I will look into the rent a room agreements asap.
Thanks again.
Tricia

triciaP1

Hi Mypiggybankisempty.
I received your PM. Thank you very much for that. I did send you a reply which I hope you received, but I have not sent a private PM reply before so I hope you got it, If not I will say again. Thank you, you explained things very clearly and I will follow your advise.:T

Tricia.