two lodgers now asked to leave as refuse to pay rent

lindalou1

to be honest I haven't looked into that...

Gorgeous_George

Thanks StiflersMom. That saved me finding the link (I thought that was the case).

What bugged me was I used to let a whole 4 bedroom house for less than the rent a room allowance and I had to pay income tax on the profit.

I should have moved in and rented a room

The other point is that it is not £4,250 per room. There is just one allowance per house.

GG

G_M

*confused* so if they leave part way through a month and you dont have anything about the notice period in the agreement, you wouldnt take any rent out of the deposit presumably?

Correct. If you have a notice period and they don't give notice, you can charge rent for that length of time. BUT if they turn nasty, you have to give them notice and LIVE with them for that period.
If you have NO notice period, they can leave any time, & you can't charge them, but if things go wrong you can get them out of your house immediately.

I know which I'd choose.

getmore4less

Weekday lodgers are an option.(might also get round the 2 lodger limit for HMO for those with 3 or more rooms to let.)

Rent is often close to the full week and they leave you the house for the weekend.

Often they are on short term contracts or relocating to the area so are likely to be shorter term. A good way to try living with lodgers to see if you can manage.

getmore4less

Locks

if getting lodgers long term,

Get a few sets that are easy to change when the sales are on in the DIY sheds.

These can be rotated over time.

m_curiousity

I was doing some reading on the subject in local library the other day and the book I read said you'd only pay the 22% tax on anything after the £4250....dammit no wonder Im getting confused!! :@ It even had an example...£5000 in rent, minus the 4250, leaves 750/100 * 22 = £165 tax to be paid!! Think it was one of the Which books as well!

I've read the direct.gov page before but cant see that it says you lose the tax free allowance if you go over it, am I being blind??

getmore4less

m_curiousity wrote: »

I was doing some reading on the subject in local library the other day and the book I read said you'd only pay the 22% tax on anything after the £4250....dammit no wonder Im getting confused!! :@ It even had an example...£5000 in rent, minus the 4250, leaves 750/100 * 22 = £165 tax to be paid!! Think it was one of the Which books as well!

I've read the direct.gov page before but cant see that it says you lose the tax free allowance if you go over it, am I being blind??

it says on that link

If you want to opt in

• if you don't normally receive a tax return and your receipts are below the tax-free thresholds for the scheme, the tax exemption is automatic so you don't need to do anything
• if you wish to opt in and your receipts are above the tax-free threshold, you must tell your Tax Office - you can do this by completing a tax return and claiming the allowance

So you need to declare it on the tax return if over not if below.

you can still elect to be in the scheme.

m_curiousity

• if you wish to opt in and your receipts are above the tax-free threshold, you must tell your Tax Office - you can do this by completing a tax return and claiming the allowance .

But it says you can complete the tax return and claim the allowance? Surely that means you are only taxed on anything above the 4250? Am I being pedantic? :O

getmore4less

m_curiousity wrote: »

[/LIST]But it says you can complete the tax return and claim the allowance? Surely that means you are only taxed on anything above the 4250? Am I being pedantic? :O

Thats my understanding, you stick £xxxx as income and get an extra allowance of the £4250 if you stay in the "rent a room" scheme.

Badger_Lady

If you don't opt for Rent a Room, you can claim allowances for a portion of your mortgage interest, bills (if applicable)... depending on how high these costs are, it could be a better option for some people.

You can't claim for these allowances under Rent a Room.

And now I'm out of my depth... (we discussed these in my thread but that was a-a-a-ages ago and I can't remember )