Secure council tenancy - temporarily renting out one room

gettingready

Can not find any info on my Council's website, some on Shelter but not what I am looking for.

Perhaps someone here knows and can point me to the right place for the regulations regarding this?

I am a secure council tenant (about 9 year I think) in a 2 bed flat. AS my daughter has (temporarily) moved out wanting to try living by herself (long story - she will be back LOL) I was thinking of possibily to rent out her room for a bit.

All the info I can find that I need Council permission (fine no problem, would ask of course) and that my benefits will be reduced.

And here is the problem as I am NOT on any benefits at all so?

I pay my rent and council tax in full as I work full time.

Hmmmm

Any pointers? Would I need to give the council part of the rent for the room?

Thanks a lot for any help....

gettingready

Ah, aslo I assume I would need to declare this to Taxman? How would I go about that - anyone knows?

What percentage of the room rent charged would I need to pay as Tax - if any?

Thanks a lot for any helpful pointers - if anyone knows?

squinty

You do not need permission to have a lodger (section 93 of 1985 Housing Act)

You do however need permission to sub-let (section 94). You may want to writeto the Council to let them know it is your intention to take in a lodger to avoid any confusion.

If you are a claiming single persons discount on your council tax this will go.

theartfullodger

What does it say in your tenancy agreement?? I can't read it from here....

gettingready

Sorry, do not have a copy of my tenancy agreemnt, have to ask the Council for one, lost mine ages ago....

Squinty, thanks for that

tbs624

gettingready wrote: »

Ah, aslo I assume I would need to declare this to Taxman? How would I go about that - anyone knows?

What percentage of the room rent charged would I need to pay as Tax - if any?

Thanks a lot for any helpful pointers - if anyone knows?

Get it direct from the horse's mouth - HMRC link

gettingready

TBS624 - thanks for that.

Do not quite understand one bit - if I rent a room for a total of less than £4250 per year does it mean I do not have to declare it or still have to declare it but will not paying tax?

Also - about expenses. Obviously extra person at home means extra on the electric/gas bills, would those be classed as expenses?

I am only thinking about it at the moment if I go for this - would like to do this right...

Thanks a lot for all the pointers, really appreciated

Owain_Moneysaver

gettingready wrote: »

Also - about expenses. Obviously extra person at home means extra on the electric/gas bills, would those be classed as expenses?

You must declare the income in your end-of-year tax return.

Under the rent-a-room-scheme you cannot set any expenses against income for tax. If you want to set expenses against income then you have to pay tax on the income (less expenses) - this may be preferable depending on your income and costs.

CKhalvashi

squinty wrote: »

You do not need permission to have a lodger (section 93 of 1985 Housing Act)

You do however need permission to sub-let (section 94). You may want to writeto the Council to let them know it is your intention to take in a lodger to avoid any confusion.

If you are a claiming single persons discount on your council tax this will go.

1) Check with council/HA
2) Notify DWP if in receipt of HB/CTB
3) keep it under £350/mth and it's tax free (rent a room)

CK

observations_from_a_hill

Hello again!

You get £350 pm, from which you have to meet all extras like loss of your CT discount, extra for gas/electricity, plus the pain of having someone in your space.

You would need to declare it in a self-assessment tax return, but no tax would be charged.

The threshold has been set at this limit (£4,250) for years now, so what was a pretty generous allowance has been impacted by inflation.

It started as a bright/pretty/wealthy young thing share when prices were high & times were good. No increase in the limit means you're more at HB level for a tenant.

Check on your Council website for what is HB for under-35's (because they only get sharing rate). If its £350 pm, then that's who you'll get applying. If HB is less than £350 you'll only be of interest to someone in work (or over 35).

Probably worth it if you find the right tenant, unless DD is likely to want to do a swift return home.

gettingready

Thanks again everyone.

AS I said I am not in receipt of any benefits apart from what I did not think of so thansk for reminding - single person's discount on CTB. Thast works out about £30 per month I believe so that would be gone.

I never do tax return/self assesement form as I am employed and my employer does take correct tax from my wages so never had the need for that.

I would not like to take anyone on HB for the room, it would have to be a working person and would have to be over 35 as I prefer someone ermmmm more grown up.

DD still playing up about coming back/not coming back home yet so..... will see how it goes.

Thanks a lot for all the advice.