Letting house to friend on LHA

Nada666

HappyMJ wrote: »

Charge her an all inclusive rate including all the bills.

No, not at all. That is a crazy idea. The only inclusive consideration should be a proportion of the council tax as part of the 'rent'.

Nada666

New_User wrote: »

Presumably, if she pays a bill directly, that doesn't count as ''income'' for my tax?


What would be the problem with putting Lucy's name on a utility bill?

No problem but easier just to keep the bills yourself and charge her a share of each. Her paying a share of utility bills is not income. (If you are separately claiming self-employed credits then that proportion should not be included, of course.)

Prinzessilein

You might also want to take a look at your household insurance...some insurance policies will not cover you for household/contents insurance if you have a lodger - they require you to take out landlord insurance.....and some forms of landlord insurance do not cover you for tenants on certain types of benefit.....it is a bit of a minefield and somewhat confusing!

New_User

No, I'm not self-employed, I'm PAYE.
But thanks for the advice I wouldn't have thought of it..

New_User

Thanks for the advice about insurance - again, not something I'd considered!
In my opinion, the house will be a lower risk with someone occupying it whilst I'm in work. But we'll see if the insurers agree...!?

Icequeen99

New_User wrote: »

Thanks very much for those further replies.
The food shopping was not something I'd thought about at all. It's been a while since I last kept food receipts!


Maybe it's best if I charge a lower rent (GBP 4249) to stay below the tax level and ask Lucy to pay more towards bills instead?


Presumably, if she pays a bill directly, that doesn't count as ''income'' for my tax?


What would be the problem with putting Lucy's name on a utility bill?


From past experience, I have kept loads of receipts etc for HMRC, but they've never been interested at all. They've always just believed what I've quoted them (for expenses against work).
Maybe because I'm PAYE - not self-assessed?

The problem with her name on utility bills will be for her benefits. Tax credits often use that as an indication that you are a couple. Normally lodgers wouldn't have utility bills in their own name, because they would just be paying the home owner for a proportion of them.

IQ

New_User

I see. Thanks.
By 'tax credits' you mean HMRC?
I get some expenses deducted from my PAYE income tax. But that is not the same as tax credits, is it?

Icequeen99

New_User wrote: »

I see. Thanks.
By 'tax credits' you mean HMRC?
I get some expenses deducted from my PAYE income tax. But that is not the same as tax credits, is it?

No. Tax credits refer to child tax credit and/or working tax credit. They are benefits paid out by HMRC. Your friend is most likely claiming one or both of them.

IQ

dealer_wins

This thread smells a bit hmmm salmonly or haddocky shall I say

New_User

What do you mean?