Rent a room schemes

bilbo_baggins

Hello all,

First time posting so apologies if this has already been answered previously.

A couple of questions:

1. Is it true that only rent is taxed for the rent-a-room scheme, and not utilities (if the lodger pays towards them)?

Now, if that is true:

2. Would it be legal for me to have a lodger that pays £354.15 per month in rent (to be just within the allowance limit) and the whole utility bill for a flat in which only us two are currently living?

Thanks in advance

BB

G_M

No.
If you want to claim utilities as an expense you can do so outside the rentaroom scheme otherwise the charge is included as income towards your £4250 allowance.

Full details here..

bilbo_baggins

Thanks G_M

Apologies for this but a couple of follow-on questions:

1. Would it be easy (and plausible) to claim the utilities as expenses on my tax return form?

2. Thanks for sending the link, but where on the website does it mention anything about utilities - maybe I'm being blind but I can't find anything!

Thanks,

BB

G_M

See:
Expenses you can claim outside the Rent a Room scheme
Allowable expenses



The expenses you can deduct from letting income (unless it's under the Rent a Room scheme) include:

• letting agent's fees
• legal fees for lets of a year or less, or for renewing a lease for less than 50 years
• accountant's fees
• buildings and contents insurance
• interest on property loans
• maintenance and repairs to the property (but not improvements)
• utility bills (like gas, water, electricity)
• rent, ground rent, service charges
• Council Tax
• services you pay for, like cleaning or gardening
• other direct costs of letting the property, like phone calls, stationery, advertising

Would it be easy (and plausible) to claim the utilities as expenses on my tax return form?

Yes provided you also declare the income.