rent a room scheme and the single person council tax discount

katejo

Badger_Lady wrote: »

I pay council tax on both my main residence and my weekday residence, because the weekday residence is a shared property and the overal council tax liability does not reduce if I decide not to pay... therefore it's only fair for me to make an equal contribution to the total.

I'm also a single person renting rooms to lodgers. I could choose to charge them an additional amount for council tax to cover the 25%. Or I could choose to opt out of the rent-a-room scheme and instead complete a normal income tax return with all expenses deducted. There's no point whatsoever in comparing myself with a couple and whining "it's not fai-air!" - one could spend all day doing that.

If I have a lodger who has another main residence, I will not charge them any council tax as I do not then lose my single person discount. The same applies to a student. When my lodger is a working person, I only charge them the 25% discount. I don't charge 50%.

getmore4less

There are ways round the limit but you have to be a little carefull.
as you point out any money you receive counts you can't make allowances for costs like council tax and utilities or any services provided that cost.

For a long term lodger thsi should be simple for them to fund some living costs unless you live totaly seperate lifes.

Think you are missing is how much it costs for people to live together is irrelivent to a business relationship of lodger landlord.

Simple solution to the issue, restrict the people you rent to and/or get a partner.

Frogletina

You could always marry the lodger and share living costs 50/50!

Don't forget, the married couple will share the profits - unlike you who gets to keep 100% profit

Badger_Lady

katejo wrote: »

I feel really uncomfortable about filling a tax return simply because I am not sure what you can claim as expenses. 50% of fuel costs or 25% as it probably does not cost twice as much to heat the house for 2?
I would really like to know how you do this.

There's a lot of information about the allowable expenses and how to complete a tax return here: http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_10013435

It probably won't work out any better than the Rent A Room scheme, though.

katejo wrote: »

If I have a lodger who has another main residence, I will not charge them any council tax as I do not then lose my single person discount. The same applies to a student. When my lodger is a working person, I only charge them the 25% discount. I don't charge 50%.

My weekday residence is shared with 83 other people. 'Single person' doesn't really come into it

InsertWittyName

iainscomputer wrote: »

A empty property should only be charged 50% council tax, you should ask for this discount, they won't give it you without you asking for it.

I had that discount, but it only lasts 6 months.