Rent a room scheme

treguard1982

I've been trying to find further info on this. Basically I was told somewhere that a lodger can get £65 per week towards renting a room. Now I'm almost certain that's only if they're not working, but is that only if they're on JSA? I have the possibility of getting a friend to rent our spare room (partner moved out) so this would help A LOT.
My guess is he'd have to pay council tax not being on JSA so I'd just lose my second person discount. £25 a month off £260 is still pretty good.
Does anyone have any comments, can answer the question on this?

Cheers

Edit:- Ah Shared Room Rate. That's the one

F_T_Buyer

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804

You get tax free income up to £4250 per year, and it doesn't matter what they do.

For council tax, yes you will lose your 25% single person discount unless they are a student or have some sort of benefit.

Jowo_2

The rent a room scheme and advice for taking in lodgers can be found on the following website.

http://www.landlordzone.co.uk/lodgers_rent-a-room.htm
http://www.landlordzone.co.uk/lodgers_questions_&_answers.htm
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804

Don't conflate the Rent a Room scheme (the sum of up to £4250 that landlords can keep without paying tax) with Local Housing Allowance (the replacement for Housing Benefit that claimants directly receive to forward this onto the landlord to pay their rent).

A live-in landlord will still be exempt paying tax on rental income below that threshold whatever the source of the lodger's income - employment, their parents paying, benefits and so forth.

https://lha-direct.voa.gov.uk/Secure/Default.aspx

A person may be entitled to LHA to contribute to all or sum of their rent even if they aren't on JSA but are on other benefits like Incapacity Benefit/Employment Support Allowance, Income Support, Disability Living Allowance, state pension and so forth.

however, some landlord sites recommend that a landlord thinks seriously about who they have living in their property, targetting those working or studying rather than someone who is going to live in the property 24/7.

Jingleanna

I have run into an unforseen problem with the Rent a Room scheme. The official info says that you can let an entire floor of your home and I have done this. Now I have received a visit from Council Assessors who say it is a separate dwelling and that it will be assessed separately. All services are shared and I pay the utility bills and council tax, losing my single person's discount.
I could not advertise it as a self contained flat because of the shared services and lack of soundproofing between floors, etc.
I will have to sell up as I have retired and can no longer afford such a large house.
I cannot pass on the cost to my lodgers as I have a six month agreement with them.
Any advice?

bryanb

Jingleanna wrote: »

I have run into an unforseen problem with the Rent a Room scheme. The official info says that you can let an entire floor of your home and I have done this. Now I have received a visit from Council Assessors who say it is a separate dwelling and that it will be assessed separately. All services are shared and I pay the utility bills and council tax, losing my single person's discount.
I could not advertise it as a self contained flat because of the shared services and lack of soundproofing between floors, etc.
I will have to sell up as I have retired and can no longer afford such a large house.
I cannot pass on the cost to my lodgers as I have a six month agreement with them.
Any advice?

Lodgers do not have any rights to live in your house. Perhaps you have tenants?

Fire_Fox

Jingleanna wrote: »

I have run into an unforseen problem with the Rent a Room scheme. The official info says that you can let an entire floor of your home and I have done this. Now I have received a visit from Council Assessors who say it is a separate dwelling and that it will be assessed separately. All services are shared and I pay the utility bills and council tax, losing my single person's discount.
I could not advertise it as a self contained flat because of the shared services and lack of soundproofing between floors, etc.
I will have to sell up as I have retired and can no longer afford such a large house.
I cannot pass on the cost to my lodgers as I have a six month agreement with them.
Any advice?

What do you mean by shared services, shared kitchen and bathroom or shared electricity and water meter?

Jowo_2

Generally, lodgers share amenities with the landlord, such as kitchen, living room and bathroom.

Having separate accommodation from the landlord and sharing bills is not the same thing. Do they essentially have an entirely self-contained flat? Do they share any common access or rooms that you use, such as the kitchen, bathroom and living room?

On the directgov site is where you may have seen that "a lodger can occupy a single room or an entire floor of your home" but it makes it clear that "the scheme does not apply if your home is converted into separate flats that you rent out" and

the scheme does not apply if your home is converted into separate flats that you rent out