Does this count as rent?

ClareyFairy

If a friend came to live with us for a year, so that they could save up, but they were also giving us £50 a week towards staying with us (Covering their share of interent/phone/electric etc) Would this need to be declared as rent, or is this just friends paying their way?

castle96

£4350 ? is allowable tax free under the rent a room scheme by the IR, so no problem

karlie88

try posting here: http://forums.moneysavingexpert.com/forumdisplay.php?f=16

ClareyFairy

Sorry wrong board

daska

wrong board but that doesn't mean a quick bit of help can't be provided

This is the link you need:

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

TehJumpingJawa

daska wrote: »

wrong board but that doesn't mean a quick bit of help can't be provided

This is the link you need:

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

Most important provisoes there would be:

If you are renting, you should check whether your lease allows you to take in a lodger.

If you're a mortgage payer it's best to check whether taking in a lodger is within your mortgage lender's and insurer's terms and conditions.

MoneySavingUser

castle96 wrote: »

£4350 ? is allowable tax free under the rent a room scheme by the IR, so no problem

4250

In this case rental income will be 600 - so under rent a room scheme the income is exempt:

http://www.hmrc.gov.uk/manuals/pimmanual/pim4010.htm