question about self assessment

ed89

hi

this question is prompted by reading what someone else wrote about lodger / tax return.

I rent a flat with a friend, but everything is in my name and is paid out of my bank accounts. he pays me £400 by standing order every month.

I am worried that HMRC might chase me further down the line, so can anyone tell me the implications of the way we do it as above?

If we were to split the costs and both pay the landlord our 50% each rather than all out of my account, would that avoid any such tax?

cheers

ceeforcat

Don't think you have too much to worry about (where is your profit?) - get your friend to sign an agreement stating something to the effect:

I agree to pay you £400 by way of my half share of the rent and running costs associated with the flat which we share at ......address.

It may be a good idea to specify the running costs.

Alternatively, your second suggestion is just as good, if not better.