tax credits and lodgers

chella

Hi if I take in a lodger will it affect my wtc?

I understand I can have a lodger live with me and not pay tax on the first £4000 or so, but if I take in a lodger will it impact on my working tax credits. I was going to ring the tax credits line but they are shut today.

pmlindyloo

We also take the following types of income into account but you should deduct the first £300 from the combined total (see Note 1 below).

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[*][FONT=PAXPX M+ Sabon,Sabon][FONT=PAXPX M+ Sabon,Sabon]State Retirement Pensions (including Widowed Parent's Allowance, Widowed Mother's Allowance, Widow's Pension and Industrial Death Benefit) and occupational or personal pensions – but [/FONT][/FONT]not [FONT=PAXPX M+ Sabon,Sabon][FONT=PAXPX M+ Sabon,Sabon]war pensions, whether paid on grounds of wounds or disability or paid to widows. [/FONT][/FONT][FONT=PAXPX M+ Sabon,Sabon][FONT=PAXPX M+ Sabon,Sabon]
[*]Most income from savings and investments (for instance, interest from bank and building society accounts, dividends from UK companies, payments from trusts or the estate of a deceased person in administration)[/FONT][/FONT]
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[FONT=PAXPX M+ Sabon,Sabon][FONT=PAXPX M+ Sabon,Sabon]– but [/FONT][/FONT]not [FONT=PAXPX M+ Sabon,Sabon][FONT=PAXPX M+ Sabon,Sabon]income from certain tax exempt investments, such as,Individual Savings Accounts (ISAs), Personal Equity Plans (PEPs) ornontaxable National Savings products.[/FONT][/FONT]
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[*][FONT=PAXPX M+ Sabon,Sabon][FONT=PAXPX M+ Sabon,Sabon]Rental income from property but [/FONT][/FONT]not [FONT=PAXPX M+ Sabon,Sabon][FONT=PAXPX M+ Sabon,Sabon]income which is exempt from Income Tax under the Rent a Room scheme (briefly, if you let furnished accommodation in your own home for up to £4,250 a year). [/FONT][/FONT]
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