Parents housekeeping money?

lmb19

I am hoping someone will be able to help me? My mum will be moving in with us at the end of February and I am just trying to establish as to whether I would have to declare her housekeeping money?


We have converted a garage but she will still be using the main house for washing cooking etc and we have come to an arrangement of £100 a week to cover any costs. My mum is approaching retirement and I realistically know that in all likelihood these payments will not last (she has no assets and will only have the state pension) but she insists on paying it for now.


I currently am employed and will be doing my very first self assessment as in 2015/2016 I have earnt over the 50k and will be getting my child benefit clawed back. I am thinking ahead of myself but next year would I have to declare this money too?

suki1964

What is your mum actually getting for £100 a week cos to me ( and it is only my opinion ) that seems a lot for a room in the family home with shared use of the main rooms

HappyMJ

lmb19 wrote: »

I am hoping someone will be able to help me? My mum will be moving in with us at the end of February and I am just trying to establish as to whether I would have to declare her housekeeping money?


We have converted a garage but she will still be using the main house for washing cooking etc and we have come to an arrangement of £100 a week to cover any costs. My mum is approaching retirement and I realistically know that in all likelihood these payments will not last (she has no assets and will only have the state pension) but she insists on paying it for now.


I currently am employed and will be doing my very first self assessment as in 2015/2016 I have earnt over the 50k and will be getting my child benefit clawed back. I am thinking ahead of myself but next year would I have to declare this money too?

No need to declare it.

Even if you did you can earn up to £4,250 per year (2015/16) then £7,500 per year from lodgers (from 2016/2017 tax year) and not need to declare it.

£100 is a lot for a garage sized room. Maybe you live in a high cost area. Make sure she's got at least what she would have had if she were paying rent to a private landlord and getting housing benefit. If she were on pension credit she should have about £150 per week after her rent has been paid.

You do imply that you wouldn't take the money so you're going to have to firm with her...you earn enough to cover her expenses. Tell her she should enjoy her retirement and get out more.

lmb19

She is currently paying £800 to rent a flat then all of her bills, we have a detached double garage (its not small at all) that my husband has converted into an annex minus cooking facilities, She has a bedroom, bathroom and living room in there. We have been working on the garage for a year now so are just on the last stages.


My mum is 63 and plans on retiring at 65, she has no savings, no assets and when it comes to retirement will realistically not be able to pay anything. I think she feels moving in with us gives her some stability since she has moved from flat to flat for the last few years, as and when rent has increased and has also been worried about taking time of work in case she cant afford her rent..... so whilst she can she is adamant that she will pay her way!


I have said about putting the money away, enjoying holidays etc but she just wont have it and wants to pay her way whilst she can. Im not a penny pincher and have booked to take her to Spain in May for a long weekend so will make sure she is spoilt then.


Realistically my mum could be living with me now for the next 20 years so I can kind of see her viewpoint.....

[Deleted User]

The thread is entitled 'parent's housekeeping money' not 'rent from parent' which suggests that the money that you received is, in your mother's eyes, a fair reflection of her share of the expenses that have increased as a result of her staying with you.

That, to me, would be the primary reason for not declaring this 'contribution towards her share of the expenses'.

jackyann

It is unclear as to whether this money includes food costs. There is the implication that it includes utilities.

I also think your mum must have a very good idea of her general costs, and thinks this a reasonable contribution.

Here are the things I would be considering:

I any of this money "rent" or is it all "a share of the bills"?

Will she have any facilities at all?
Depending on your set-up at home this may become an issue.
If, for instance, her door leads straight to a utility room / loo, you will all find this easier than if she has to walk through your living room every time she wants to make a cup of tea or needs the loo.

If you are intending to eat together, what does this actually cover? If she goes out a couple of evenings, does she put in less? If you buy a take-away, does she contribute extra towards it? You don't need to work out all the details, but being aware of them can stop "issues" arising.

I would suggest that you accept the £100, and keep it separate at first from your own money. Begin a detailed note of utility costs and housekeeping. When a clear picture emerges (and certainly with utilities it will be a year, although you will get an idea before then) you will have information as to how to proceed.

If you have money to spare, you could pay yourselves back the cost of conversion; or you could save towards putting in some plumbing in the future.
It will also help your mum budget for the time when she only has her pension.

sitesafe

Lovely for your Mum to be moving in close to her family. Not sure if you would be entitled to benefit from the rent a room scheme though. Unless the rules have changed I thought it only applied to if the person rented a room but shared all other facilities. From what you say she would only really have to share the kitchen. Also there might be an issue if she has an independent entrance to the accommodation (although you don't mention it it might an issue and become a tenancy). Perhaps investigate further as they are just thoughts that sprung to mind and I could be wrong.

HappyMJ

sitesafe wrote: »

Lovely for your Mum to be moving in close to her family. Not sure if you would be entitled to benefit from the rent a room scheme though. Unless the rules have changed I thought it only applied to if the person rented a room but shared all other facilities. From what you say she would only really have to share the kitchen. Also there might be an issue if she has an independent entrance to the accommodation (although you don't mention it it might an issue and become a tenancy). Perhaps investigate further as they are just thoughts that sprung to mind and I could be wrong.

A room can include an en-suite for the intended sole use of the occupant of the room and can include a living space where a lounge chair can be sited and a TV aerial point included so the occupant can install a TV and basically live in the room without having to have any other allocated living space in the property. Sharing any space at all is all that's required so the kitchen counts.

A 2 up 2 down terrace house with a entrance in a side alley (not at front of house straight into front living room) could have the front room let out as a bedroom and 2 further bedrooms upstairs with effectively no living space at all. The middle room can be set up as a kitchen/diner.

sitesafe

Thanks for the update MJ - handy to know for myself and helpful for the OP

Mojisola

She's not a lodger or a tenant. She's a family member paying her share of the household bills.

The money she gives you isn't 'earned' so you don't have to declare it anywhere.

I can understand her wanting to pay her way - I wouldn't want to live with one of my children without contributing. If you think she's offering more than you need, follow jackyann's advice. When you have the figures, you can talk it through with your mother again.

pleasedelete

Do you have planning permission? Will there be a separate council tax bill for garage- and if so who will pay . Sounds like a discrete dwelling not part of the main home as it is a detached dwelling.

Here they are very hot on this- you usually cant do it and on the rare occasions it is allowed there is a separate council tax bill etc