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Benefits, gifts, tax and a lodger
Comicrainbows
Posts: 3 Newbie
Hi
My son is considering living back with me after he finishes uni.
I am on ESA and get Council Tax Reduction due to low income. I am considering going back onto WTC.
I am his mother and we both work.
He wants to give me a reasonable amount of money every month.
I understand the money from the Rent a Room scheme is non taxable up to £4250. I also understand if I take in rent from him as a lodger this will affect both ESA and Council Tax but not WTC if under £4250.
He will be giving me considerably more than this amount.
I also understand that there is no tax paid on gifts given to relatives.
Although he is giving me money is there anything preventing me from saying he is not giving me any rent but it is a gift?
There will be an increase in broadband, electricity, water usage which I can afford to pay. He will be paying his own food.
Many thanks.
My son is considering living back with me after he finishes uni.
I am on ESA and get Council Tax Reduction due to low income. I am considering going back onto WTC.
I am his mother and we both work.
He wants to give me a reasonable amount of money every month.
I understand the money from the Rent a Room scheme is non taxable up to £4250. I also understand if I take in rent from him as a lodger this will affect both ESA and Council Tax but not WTC if under £4250.
He will be giving me considerably more than this amount.
I also understand that there is no tax paid on gifts given to relatives.
Although he is giving me money is there anything preventing me from saying he is not giving me any rent but it is a gift?
There will be an increase in broadband, electricity, water usage which I can afford to pay. He will be paying his own food.
Many thanks.
0
Comments
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he is not paying you rent, he is a non-dependent paying board (as he should) this will not affect your ESA / WTC
your councils site will have details of the non-dependent deductions for housing benefit/council tax benefit0 -
he is not paying you rent, he is a non-dependent paying board (as he should) this will not affect your benefits
Non dependent income WILL be taken into account when the calculation is done for your Council Tax Reduction.Spelling courtesy of the whims of auto correct...
Pet Peeves.... queues, vain people and hypocrites ..not necessarily in that order.0 -
sorry badly worded - corrected0
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