PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Rent a Room to my own Son?

Options
This might sound really cheeky but I would love some advice please.

Under the governments Rent a Room Scheme can I rent a room out to my own son in order for him to claim housing benefit and then pay me? It is actually a whole floor of our house including a bathroom which would only be used by him.

He is seventeen and I have recently lost financial support from his father £160 per month and very shortly will lose the child benefit I get for him too.

He is soon to start a college course with an associated apprenticeship at a local restaurant where he will be earning minimum wage for probably 20-30 hours per week.

I am aware I have to put a lock on the door in order to rent this room out but is there any restriction to him claiming housing benefit. Obviously if he chose to rent a flat elsewhere he would have to claim housing benefit as his income would not cover his housing requirements. It would help me enormously to have some of the rent paid and he could top up the rest (supposedly - obviously I'd let him off the rest). Any ideas or suggestions would be very appreciated. Many thanks.
«134

Comments

  • mjdh1957
    mjdh1957 Posts: 657 Forumite
    Part of the Furniture 500 Posts Photogenic
    I believe you can't claim housing benefit if you're living with parents, so the Rent a Room scheme won't apply.

    Talk to the council and see what their policy on housing benefit is.

    If your income is dropping because of maintenance ceasing, are you claiming all you are entitled to yourself?
    Retired in 2015.
    Moved to Ireland September 2017
  • dmg24
    dmg24 Posts: 33,920 Forumite
    10,000 Posts
    I believe you can't claim housing benefit if you're living with parents, so the Rent a Room scheme won't apply.

    mjdh is correct.
    Gone ... or have I?
  • mikewebs
    mikewebs Posts: 538 Forumite
    Remember you wil probably be liable to pay income tax on ANY income from rented property - so it may not be worth your while.
    :confused::confused::confused::confused::confused:
  • lynzpower
    lynzpower Posts: 25,311 Forumite
    10,000 Posts Combo Breaker
    Yes, thats correct, housing benefit cannot be paid to close family members by law.
    :beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
    Theres no dollar sign on piece of mind
    This Ive come to know...
    So if you agree have a drink with me, raise your glasses for a toast :beer:
  • Libra1975
    Libra1975 Posts: 286 Forumite
    mikewebs wrote: »
    Remember you wil probably be liable to pay income tax on ANY income from rented property - so it may not be worth your while.

    I thought the first (approx) £4000 was tax free?
  • affordmylife
    affordmylife Posts: 1,224 Forumite
    Part of the Furniture Combo Breaker
    Thank you all so much for taking the trouble to reply.

    I am currently reading Smart Spending by Jan Furnival and she states that under the rent a room scheme "if you have a door between you and your lodger, even if tha is your teenager and/or the door is locked all the time you can charge £4,250.in rent each year". I guess the catch is the housing benefit. Obviously Im not going to charge my dear boy that but I just thought it meant if I could rent it to anyone and charge rent that anyone could claim housing benefit couldnt they and then pay me. It seems silly as I could rent it to a stranger who could claim benefit to pay me and my son could go and rent somewhere else and claim benefit to pay someone else rent. What is the point. He may as well be able to pay me as a stranger?
    It seems like a no brainer to me!
  • dmg24
    dmg24 Posts: 33,920 Forumite
    10,000 Posts
    He may as well be able to pay me as a stranger? It seems like a no brainer to me!

    In your situation I would agree with you, but there are others who would take advantage of the situation, hence the HB rule.
    Gone ... or have I?
  • Melissa177
    Melissa177 Posts: 1,727 Forumite
    mikewebs wrote: »
    Remember you wil probably be liable to pay income tax on ANY income from rented property - so it may not be worth your while.


    Not under the rent-a-room scheme - the first 4250 per year is tax free, you don't have to declare it.
    Errors of opinion may be tolerated where reason is left free to combat it. - Jefferson
  • affordmylife
    affordmylife Posts: 1,224 Forumite
    Part of the Furniture Combo Breaker
    Just checked the link that mikewebs gave me and you are right he can claim housing benefit but not if living with parents or close relatives. So I suppose thats that. Never mind. Thought I'd discovered a reasonable way of a little bit of income. Its back to full time work for me then!

    In answer to an earlier reply we are not entitled to anything else we earn approx £35,000 between us and ony get the family element of tax credit of £500 ish per year but due to previous overpayment they are taking that off us until its repaid so we get a bit fat zero!
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.