Lodger type tax query?

crawley_girl

Hi there

Just looking for a bit of friendly advice about the following situation:

I am due to be taking in an older teenager who is coming out of care, under a scheme through my local social services called supported lodgings. The teenager will have their own room but I will be expected to cook for them.

The placement could be for the whole year or anything up to 3 months.

I will receive payment from Social Services, but have been advised to seek out an accountant or tax advice.

I'm looking for some advice as to whether I need to find an accountant or someone to help with tax returns and also some advice as to what i can claim as expenses (eg. food, % of utility bills, travel/ transport, wear and tear on bedroom furniture - which will be for their sole use - and also wear and tear on other items in my home - carpets and furniture and redecoration springs to mind!!)

I guess this is similar to 'rent a room' which I know someone can 'earn' 4k or so pa without incurring any additional tax implications, but this is a bit different because of the food and cooking element. Or is it?

Also, because the placement can be short or long term, this will obviously affect the total income for the year.

I am totally baffled... Can anyone point me in the right direction? Would I be wise to seek out professional advice or can anyone advise me? Not sure if you need to know this but, I also work full-time

Thanks guys!

:heartpuls CG :heartpuls

prettyinpink7890_2

If "supported lodgings" is considered to be part of a foster-carer scheme, then there are generous tax allowances available on income derived from fostering.

You might find the HMRC (HM Revenue & Customs) website useful: http://www.hmrc.gov.uk A quick search of the site found this article which gives some background to Foster Care Relief: http://www.hmrc.gov.uk/individuals/foster-care-relief.pdf

My knowledge of the subject is a little rusty, so I'd suggest you give your own tax office a call, or alternatively see if there are any local foster-carer support groups who can give you up-to-date guidance.

Best wishes.

PiPx

crawley_girl

Thanks very much... Pip. Appreciate the guidance

thriftymiss_2

Hi I have also been approved for this scheme and was unofficially advised that one lady doing the smae had been told by her local tax office that as she went in front of the fostering panel, as true foster carers do too, that there is no tax to be paid, as per foster carers. this is obviously good news but definately to be taken with caution as it is not from the horses mouth (HMIR)

Green_Fingers_3

Hi, I'm about to do my Tax Returns but before I do my County Coucil is putting on a Training Day on Doing Tax Returns. From what I understand there are two elements to the pay received. The board and lodgings bit is tax free (rent a room scheme) and the skills part is taxable. Things you can claim against are things like a contract phone bill, petrol, other expenses necessary for helping a teenager. You are also self employed so you would be expected to pay your own stamp(s) if you are not of pensionable age. The Fostering Allowances are almost tax free unless you get to the 24k per year bracket. Your Tax office might be able to help but your Supported Lodgings Advisor should be able to help too or else the Office. Good Luck and good luck with the Job!!!