Lodger in caravan

olias

Gypsysmum wrote: »

Next we come to the business side of things. I know nothing about running a business from home so where do we stand on that one? Will my address go down as a business and, if so, does that have capital gains tax (or any other) implications if we come to sell?

Surely you were already running a business from home before the arrival of the caravan by renting the land to her. Are you not registered as such and paying any tax due on the rental income.

Olias

Gypsysmum

olias wrote: »

Surely you were already running a business from home before the arrival of the caravan by renting the land to her. Are you not registered as such and paying any tax due on the rental income.

Olias

Yes but only at £100 per month so not big business in the scheme of things. I know that technically I should declare it but I would rather not do it than get involved in loads of paperwork. I am sure the IR would feel the same.

paddyrg

If the lady is itinerant and on her own, what happens when she finds a partner/has kids/etc? What if she meets a friend with a bus who comes to live next door? Get things really clear as you could be making trouble for yourself

CIS

I know that technically I should declare it but I would rather not do it than get involved in loads of paperwork. I am sure the IR would feel the same.

HMRC require all monies to be declared, irrespective of the paperwork involved.

Fire_Fox

Gypsysmum wrote: »

Yes but only at £100 per month so not big business in the scheme of things. I know that technically I should declare it but I would rather not do it than get involved in loads of paperwork. I am sure the IR would feel the same.

No HMRC do not feel the same. You need to do a tax return or risk a massive fine. And you are drawing attention to yourself by allowing someone to stay on the site.

Davesnave

CIS wrote: »

HMRC require all monies to be declared, irrespective of the paperwork involved.

I'm sorry, but in the case of smallholdings, where losses very often outstrip gains, HMRC usually only tolerate about 5 consecutive years of negative returns. Then, they declare you a "hobby farmer" and refuse to recognise the holding as a genuine business.

lincroft1710

Gypsysmum wrote: »

I am pretty sure that you are allowed to have someone living in a caravan on your property without planning consent as long as they use a "service" from the house. This means water, electric or have meals, do their washing etc. It comes under them living in "an extension" of the main house and not a seperate home. Only if they set up a self contained caravan would we need planning permission.

You can use a caravan as a "spare bedroom" for your house without needing planning permission. So unless she is going to eat/live with you in your house and just sleep in the caravan, it will need pp.

Also if she occupies the caravan as her sole or main residence and is not just sleeping in it and living/eating in your home it will be subject to a separate assessment for Council Tax.

AnnFreds

propertyman wrote: »

I'd think about the licence or lease for the field being granted for her horse riding business and subject to planning permission maintaining an office on site. That it was cheaper to buy a caravan...

It depends on the planning for the office, and I am afraid I haven't done rural since the 1980's ! Take a look at your Council website for local plan and land use.

I do struggle with the idea that a person, prepared to get by independently on their hard work, and live for now in a caravan, should give it all up and claim.

Is there any remedy for it? I thought it can't works for you.

spookyhelen

I dont know if this would be any use but i have heard (nothing official to back this up) that if you did gain permission to use your land to rent as a holiday caravan site. You can bypass the 28 day rule by moving the caravan a few meters every 4 weeks. This stops it being a "permanant" residence and gives the council or who ever regulates these silly rules not much to stand on saying you have an permanant rental propperty.

Bigmoney2

spookyhelen wrote: »

I dont know if this would be any use but i have heard (nothing official to back this up) that if you did gain permission to use your land to rent as a holiday caravan site. You can bypass the 28 day rule by moving the caravan a few meters every 4 weeks. This stops it being a "permanant" residence and gives the council or who ever regulates these silly rules not much to stand on saying you have an permanant rental propperty.

I think that usually the van needs to be removed from the site for a night and when returned moved to a different pitch.

Also campsites are registered for leisure use, living there permenantly and running a business is not usually classed as leisure.

Where does the girls post go to as she will need to have an address to register with doctor, dentist, especially if she has a child living there, as well as other things like HMRC, driving licence, insurance, etc.

Whilst your sentiments are admirable (and hers) without the correct permissions you are opening a can of worms.


There maybe 'loopholes' depending on the whole setup.
Are you a farm, or a smalholding, a campsite, or just a private residence with a bit of spare land.

The only way I could see it working is if she alternates between 2 sites every 21/28 days, or you try for permission for a more permenant pitch for workers accommadation and treat her like an employee, maybe cleaning campsite toilets a few hours a day,

The wardens on caravan club sites are there all the time the site is open, but I assume this is part of the planning permission for the site.