Is there Tax payable when 'subletting'

aldredd

thanks 00ec25 - really useful advice & links.
I thought as much re the share a room bit - but hey, worth asking.

Your first link certainly suggests that there would be no tax implication in renting well below market rate to a relative - though that assumes they make no distinction between a home-owner LL and a renting LL

In your second link, although I would fall into the category 'non-resident landlord', I don't know if I 'qualify' for the scheme in question.

Non-resident landlords can apply to receive their rent with no tax deducted on the basis that either:

their UK tax affairs are up to date
they have not had any UK tax obligations before they applied
they do not expect to be liable to UK Income Tax for the year in which they apply
they are not liable to pay UK tax because they are sovereign immunes

I will still be paying UK tax, as my employment will still be UK based and paid in GBP - I will just be based overseas - or have I mis-understood?

Thankfully, once I start the contract, I will have access to the companies tax specialists who will file my returns etc and can make sure I'm getting the best deal - I just don't want to set myself up for a huge unexpected tax bill if I can help it!

thanks again - really appreciate the advice

00ec25

aldredd wrote: »

In your second link, although I would fall into the category 'non-resident landlord', I don't know if I 'qualify' for the scheme in question.

I will still be paying UK tax, as my employment will still be UK based and paid in GBP - I will just be based overseas - or have I mis-understood?

OK - ignore that bit, you are UK domiciled for tax and the non resident scheme is n/a to you

antrobus

Is there Tax payable when 'subletting'

Given the circumstances described, no.

Technically speaking, you might or might not qualify as a 'non-resident landlord' for the purposes of the Non-Resident Landlord scheme. But since you won't be making a profit on the deal, there's no liability to tax, so HMRC won't care one way or the other.

aldredd

antrobus wrote: »

Is there Tax payable when 'subletting'

Given the circumstances described, no.

Technically speaking, you might or might not qualify as a 'non-resident landlord' for the purposes of the Non-Resident Landlord scheme. But since you won't be making a profit on the deal, there's no liability to tax, so HMRC won't care one way or the other.

Thanks, just what I was hoping. As to the technicalities of how I report it to HRMC (as presumably I will still need to 'declare' it?), I will let my employer get their head around that bit

antrobus

aldredd wrote: »

Thanks, just what I was hoping. As to the technicalities of how I report it to HRMC (as presumably I will still need to 'declare' it?), I will let my employer get their head around that bit

To be honest with you, I don't think there's anything to report. After all there are thousands of people who rent properties and subsequently end up sharing the property with a boyfriend, girlfriend, whatever, who will make a 'contribution to the rent'. HMRC has absolutely no interest in hearing about such things. A private arrangement between individuals to share the cost of something has no tax consequences. I don't see that what you're intending to do is any different.