Income from lodger: Help! Where does it go on the SA form?

bubbleoflife_2

I am completing my SA online. I do not own my property, I am the tenant and had a shortfall on my income so I've had to let my bedroom out to pay my bills and live. I have gone over the £4,250 threshold one is allowed to earn tax free , so I selected 'Yes' next to 'Did you receive any income from UK Property including income from land?' Is this correct?

I have also selected 'Yes' where it reads 'Do you want to claim Rent a Room relief?' thinking that this is referring to Method B (£4,250 is tax-free and I'll pay tax on the remaining total amount from letting) as per Rent-a-Room notes. Is this correct?

I have entered 1 in the box that reads 'How many properties do you rent out?'
It's only the bedroom that I let, not the entire flat!

The notes next to the box
'Total rents and other income from property'
confuses me It reads 'If you own UK land or property which produces rents or other receipts we treat you as operating a property rental business (whether you have one or several properties)'.
I do not own a property or property rental business. But I do not see any other box where I can enter the amount.

Also, on another page, it asks the amount for 'Rent, rates, insurance, ground rents etc:' Does it mean the total amount I paid in rent, council tax, water during the tax year April 2014-2015?

Sorry, I am very confused

[Deleted User]

A tenant can let out a room and claim rent a room relief - think it more in terms of renting out a room in your 'home'. You have the option of deducting 4250 from your total income and claiming no further expenses or not deducting 4250 and declaring actual income and expenses. (I hope this is still the case - a long time since I did this) How much is the income?

It would appear on my reading that, on method b, you simply enter total income in box 20 and 4250 in box 37

bubbleoflife_2

[Deleted User] wrote:

A tenant can let out a room and claim rent a room relief - think it more in terms of renting out a room in your 'home'. You have the option of deducting 4250 from your total income and claiming no further expenses or not deducting 4250 and declaring actual income and expenses. (I hope this is still the case - a long time since I did this) How much is the income?

It would appear on my reading that, on method b, you simply enter total income in box 20 and 4250 in box 37

Thank you for the reply. Yes, I understand that it relates to my 'home', the place I live and that I have the option of deducting £4250 from the total without claiming further expenses. This is option B (I have looked at HMRC's notes but found these clearer http://www.which.co.uk/money/tax/guides/tax-on-property-and-rental-income/rent-a-room-scheme-letting-a-room-in-your-home/ ) . I'm confused about which boxes need to be filled and the notes (as I pointed out in my original post).
I do not see numbers on the boxes.

booksurr

assuming you wish to pay tax on the excess amount over 4250...and that you do not split the rental income with anyone else

UK property income page
Do you want to claim Rent a Room relief? YES
If 'Yes', did you receive rents of £4,250 or less? NO
How many properties do you rent out? 1
Do you have any income from property let jointly? NO
Did all property income cease in 2014-15 and you do not expect to receive such income in 2015-16? Your answer is ?
Did you receive income from UK furnished holiday lettings? NO
Did you receive income from EEA furnished holiday lettings? NO
Total rents and other income from property: £x (remember this is the total you received without ANY expenses or other deductions knocked off the amount you got from your lodger (s) between 6/4/14 and 5/4/15 either in cash or via your bank account
UK tax taken off total rents and other income from property: Please read the notes.leave blank
Premiums for the grant of a lease: leave blank
Reverse premiums and inducements: leave blank
Rent, rates, insurance, ground rents etc:£leave blank
Property repairs and maintenance:£leave blank
Loan interest and other financial costs:£leave blank
Legal, management and other professional fees:£leave blank
Costs of services provided, including wages:£leave blank
Other allowable property expenses:leave blank
Private use adjustment:£leave blank
Balancing charges:£leave blank
Annual Investment Allowance:£leave blank
Business Premises Renovation Allowance (Assisted Areas only):£leave blank
All other capital allowances:£leave blank
Landlord's Energy Saving Allowance:£leave blank
10% wear and tear allowance for furnished residential accommodation only:leave blank

Rent a Room exempt amount: 4250

the next page shows you the calculated net taxable rent after deducting the RAR allowance.
by definition you cannot have any losses so leaves all those blank
leave the any other info blank

THE END

had you done any reading at all before trousering the rent you might have found out that...
- rent a room allowance applies to a person who lets a room (or rooms) to one or more lodgers in the property the person calls their home, be it that they own it or do not own it but rather themselves rent if from somebody else.
- If you read the Q properly you will see it does not ask if you own the property that you let, it merely asks how many you let. Patently if all you have are lodgers then that cannot be more than 1
- the receipt of rent in any form is running a rental business
- a property means a building, not the number of rooms therein

bubbleoflife_2

booksurr wrote: »

assuming you wish to pay tax on the excess amount over 4250...and that you do not split the rental income with anyone else...

...had you done any reading at all before trousering the rent you might have found out that...
- rent a room allowance applies to a person who lets a room (or rooms) to one or more lodgers in the property the person calls their home, be it that they own it or do not own it but rather themselves rent if from somebody else.
- If you read the Q properly you will see it does not ask if you own the property that you let, it merely asks how many you let. Patently if all you have are lodgers then that cannot be more than 1
- the receipt of rent in any form is running a rental business
- a property means a building, not the number of rooms therein

Many thanks for your thorough reply booksurr.
Yes, I have done the reading and thought that there was going to be a Rent-A-Room dedicated section not for property owners but for common folks (not accountants) who are tenants and let a bedroom out! I was wrong! I also looked for a video on the HMRC site on the subject but couldn't found none that related on how to fill out the actual form.

Anyway, I shall go ahead and complete the SA form. Again, many thanks.

bubbleoflife_2

patanne wrote: »

The exempt amount is going up from April to £7500!

Yes, I saw that last year and it should have gone up from last year but HMRC postponed the date (or Osborne told HMRC to delay the increase in exempt amount ).

Thank you for your reply.