Tax Question

triflesterms

Hi

My friend is considering renting a room out to me, would i need to notify anyone of my change of address if i moved in?

This would be a very informal agreement with my friend, though he wouldnt want to do this if it would be taxable.

Would it be?


Thanks

mlz1413

You should inform people that you have moved, ie doctors / dentist / work so that you can recieve anything sent to you by post.

Your friend can use the rent-a-room scheme, details on direct.gov website, if charging you under £355 per month. But your friend should tell their home/buildings insurers if you move in. Also if claiming 25% single person reduction on the council tax then they will need to write and advise they are no longer elgible.

triflesterms

Thanks. Hes just told me that hes moving to his girlfiend's, but the rent will stay the same! So that means I get the whole house and claim the 25% council tax reduction. Would he need to tell his mortgage company?

mlz1413

If he rents to you and is not resident then he cannot use the rent-a-room scheme.

He should give you a tenancy agreement, request permission from his mortgage company and tell his building ins and keep records to fill in a tax return.

You should have the contents insurance as you will be living there, change your address and become responsible for all utilities, c/tax etc.

I would strongly advise your friend to reconsider the thought that this is an informal agreement, it is his house and his biggest responsiblity he really ought to find out what he legally needs to do.