Renting a room to a friend what do we need to know

Werdnal

poet123 wrote: »

He would declare anything over £4500 (?) but he bought with a large deposit so I don't think the income would actually be over that.

Not sure what you mean here?

The deposit he used to buy the property has no relevance to the income he receives from letting a room. Income is income, regardless of what the property cost to buy, or how much he put down as a deposit!

poet123

Werdnal wrote: »

Not sure what you mean here?

The deposit he used to buy the property has no relevance to the income he receives from letting a room. Income is income, regardless of what the property cost to buy, or how much he put down as a deposit!

Sorry, it goes back to my first post where I said the friend had offered a rental which almost paid his mortgage. I think he has a mortgage of around £420pcm, (because he had a good deposit) so if the lodger paid around that amount it would still fall under the tax threshold.

G_M

Look. Either ask him what rent is going to charge so wecancomment, or give him thelink to the renta a room scheme and leave himtowork it out.

'Guessing' is pointless.

G_M

poet123 wrote: »

Any thoughts on cash/rent book/DD?

If rent is paid weekly a rent book must be provided by law

poet123

G_M wrote: »

Look. Either ask him what rent is going to charge so wecancomment, or give him thelink to the renta a room scheme and leave himtowork it out.

'Guessing' is pointless.

Guessing about what?

He will be charging less than £4250 a year in rent. If he wasn't, as I have said, he would declare it.

paddedjohn

poet123 wrote: »

Guessing about what?

He will be charging less than £4250 a year in rent. If he wasn't, as I have said, he would declare it.

£420 per month rent equates to £5040 per year so its not below £4250 is it.

poet123

paddedjohn wrote: »

£420 per month rent equates to £5040 per year so its not below £4250 is it.

I said "around that amount" and "almost" cover his mortgage, not that he would be specifically paying £420 which is the amount of his mortgage.

He knows the limit, so will either stay under it or declare it.

paddedjohn

OOPS my bad, just reread, even if he goes over that amount he only pays tax on the excess so using my post as an example he would only have to pay £158 tax assuming he was a lower rate tax payer.

The_Magnificent_Spoon

poet123 wrote: »

The BB connection is straight into the office, which is upstairs next to the room the friend would occupy, so I really don't see that being an issue. If it was they could up the speed to accommodate.

You would be surprised.

My last flatmate was such a pain in the !!!!. I used to have 15mbps broadband, and every so often, several times through the day (usually for an hour after he 'went to bed'...) he would completely max my broadband - both upload and download. This would completely kill my connection.

So I upgraded to 40mbps. No difference, same thing kept happening, except he kept maxing out 40mbps this time.

It's probably the number one reason why I won't have him back when he gets back into the country next month. That and him hogging the bloody washing machine!