Charging rent for 21 year old

annie-c

The opt-in rules are made clear in the link:

How to opt in or out of the scheme
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

If you want to opt out

just complete a tax return within the usual deadline and declare the relevant lettings income and expenses on the property pages

As far as 'rules on gifts' go, there is no current 'gift tax' in the UK, though problems might arise later on in relation to inheritance tax, if the giver should die within 7 years of giving the gift. For this reason, I believe that gifts of a certain amount (ie over £3000 in any one tax year) are known as 'potentially exempt gifts' - ie, they are exempt, subject to later complications in the case that the giver dies and inheritance tax rules kick in. Totally exempt tax -free gift allowances are higher in some cases - up to £5000 as a one-off wedding gift, I believe.

Addiscomber

I have no intention of charging "rent", just his share of living expenses. How on earth is that "income" for me? It just means that we will be spending less of our other, already heavily taxed income on food, household necessities and fuel. Heavens above, shock horror, we may even be able to afford a holiday from our own money.

There would be severe unrest if the Chancellor of the Exchequer interfered in his precious "hardworking families" like that.

carylanne

I am a 53 year old supply teacher, living with my pensioner mother. As a supply teacher, I don't get paid holidays. When I have not been able to get hoiday jobs I have claimed Job Seekers allowance. I normally pay £85 a week as 'rent'. The government does not allow me to claim rent as I live with my mother! Her opinion on this is not repeatable. What is the difference between living in (non-family) rented accomodation, and my situation?

orlwaysbroke

Charge him over the odds

Maybe £350 pcm.

( But save £200-300 pcm in a savings account ).

My parents did that to me ( pro rata because it was 20 years ago ).

They ensured that I had somewhere warm and dry to live, but insisted that I help around the house.

Then when I ( lump in throat, bottom lip quivering ) moved out, I had small nest egg so that she knew I could afford to live 'all on my own'.

Savvy_Sue

carylanne wrote:

The government does not allow me to claim rent as I live with my mother! Her opinion on this is not repeatable. What is the difference between living in (non-family) rented accomodation, and my situation?

I think you mean that you can't claim Housing Benefit. However, your mother CAN claim Housing Benefit if you're in rented accommodation, Council Tax Benefit regardless of what kind of accommodation you're in, and Pension Credit as well. I don't know if she would be entitled to any of them, as they're all income assessed, and HB and CTB require you to declare YOUR income as well as well as hers.

There are problems with both those benefits when income is not regular. But it might be worth a try.

pinkfluffybabe

laurajayne wrote:

I do think that's a massive over generalisation - I think most of us know exactly how much it costs...who can get away from the constant bombardment of property/gas/CT stories. I actually moved out, and had to come back home due to a relationship break up...most of my debt was down to those dark days....I had to pay over £300 a month for rent for a flat I wasn't living in, and I still gave my mum £165 housekeeping, and I did it gladly - I appricate all they both do immensely....and I wish I could give them more, however that figure was worked out on my incomings and outgoings.

Admittedly, I can't move out on that kind of money, I know that....I don't earn the kind of money needed to move out on my own.

I think the OP should sit down with her son, and talk about his incomings and outgoings honestly. If nothing else, he obviously needs some guidance with how cash/credit works...is there any point putting his housekeeping up to £300 if he's going to end up borrowing the money back, or getting into serious difficulities?

I also had to move back home with a lot of debt due to a relationship breakup. My parents take £150 per month off me for rent and an extra £50 for savings (which they are giving me back shortly to put towards a new car that I need). I take home £1350 per month, but my parents realise that there is no point in them taking money off me that they don't need when I could be paying off my debts and saving for a house deposit. I know full well what it costs living in the real world.

I agree with your advice to the OP - talk to him and try to work something out that you both feel is reasonable.

IAGpro

liney wrote:

He is already paying you 14% of his salary by my working out ) I would perhaps put it up to £150 per month, but maintinence for your other child is really irrelavant when you are asking how much to charge him, as he isnt the father !

You can usually rent a room for £50 per week, but with this comes complete freedom which i doubt he has at home. If i was asked to pay the equivalent of £300 per month i would have moved out. Whilst we need our children to understand bill need to be paid, they are still our children, not lodgers.

He may be her child 'not a lodger' but he is an adult and working. Parents do not have to take full financial responsibility for their adult offspring, they should do it for themselves. 1/3 pay is about right. He must learn to budget.

If you were asked to pay more you would move out, what's that, emotional blackmail? If you think you can do better on your own, try it.

Sunshine_and_Roses

clareski wrote:

I have just calculated that mortgage, utility bills and internet etc come to £800 per month. I spend approximately £300 - £350 a month on food, cleaning products etc.

I moved in with my partner and his 22 year old son 18 months ago, and I do nearly all of the cooking, most of the housework (apart from his son's ironing). He pays £120 a month keep - he promised to increase this a couple of months ago but I hae just checked our bank account and it is still the same.

Any suggestions on how much would be acceptable for him to pay? He works full time and has done so since he left school at 16.

Thanks

Sorry to bump my own question!!

I am starting to feel more and more resentful about the money situation at home. My OH and I have said we will put more into the 'pot' each month, but I feel his son expects me to pay for his share of the bills. What would he have done if I had not moved in and paid a large chunk of them? I know my OH could not have managed on his wages alone with the cost of the bills.

I spoke to my OH and he said that his son had agreed to up his money to £150, but I do not feel this is enough.

What can I do to tackle this without seeming like a complete witch? I don't want to make money off him, but I would like to have a life with my OH - we are spending money on decorating (a VERY tight budget), and would love to have a meal or drink out with him every once in a while.

Please save my sanity!!

ebb'n'flo

Being a bit new to this I am not sure if this thread is finished .... but DD3 moved home after 4years at Uni to take up local teaching post. She has worked out that it will take her 62 years to pay off student debt at minimum repayments, (and more worryingly she is earning hour for hour the same as she was earning during the summers flippin' burgers) however having a healthy fear of debt we have agreed a two year plan that I don't charge her rent and in return she sets up a standing order to pay vile debt ( otherwise known as The Student Loans Company) to the tune of at least £300 per month. This way I feel able to help her, which is something I was unable to do while she was at Uni.
My only concern is that there may be a better way to do this????

[Deleted User]

Hasn't you read the thread saying it's better to put money into an ISA/high interest account than pay of your student loan early?

Personally, i'd forget about the SLC, it might take 66 years but they'll never try to reposess your house for it, and it's extremely low interest.

I'd concentrate the savings on getting a deposit for a home together. I've been saving 300 a month (on average) for the last 3 years after I graduated, and its proving useful now i'm buying my first home.