Lodger ESA and SMI

borkid

I found this http://www.ageuk.org.uk/brandpartnerglobal/gloucestershirevpp/factsheets/calculating_income-related_employment_and_support_allowance_fcs.pdf

Page 12 6.3 point 5 of the disregard section.
Could it be argued that buildings insurance and some council tax be disregarded?
"Any income left after applying these disregards may be offset against any housing costs that you have which are not met by income
related ESA."

I've quoted and bolded the part which might be applicable.

Guest101

All income received from a lodger, whether for bills or for rent or whatever - counts as income.

borkid

Guest101 wrote: »

All income received from a lodger, whether for bills or for rent or whatever - counts as income.

It counts as income true but some income can be disregarded.

Guest101

borkid wrote: »

It counts as income true but some income can be disregarded.

Not for tax purposes.


However I don't know the implication on other benefits.


Certainly for the rent a room scheme (now £7k a year tax free) all payments received whether for rent or bills count towards that limit, with anything over being taxable

nannytone_2

Guest101 wrote: »

All income received from a lodger, whether for bills or for rent or whatever - counts as income.

not if the bill is paid directly from the lodgers own account.

borkid

Guest101 wrote: »

Not for tax purposes.


However I don't know the implication on other benefits.


Certainly for the rent a room scheme (now £7k a year tax free) all payments received whether for rent or bills count towards that limit, with anything over being taxable

The OP was asking about how it would affect ESA payment and the link I gave was re ESA.

Guest101

nannytone wrote: »

not if the bill is paid directly from the lodgers own account.

That would be tax evasion...


The law is very clear on this matter.

Guest101

borkid wrote: »

The OP was asking about how it would affect ESA payment and the link I gave was re ESA.

Sure, I just wanted to point it out as it could affect other things down the line

nannytone_2

Guest101 wrote: »

That would be tax evasion...


The law is very clear on this matter.

tax evasion?
what the hell are you talking about.

Confuseddot

Thanks guys the lodger may have fallen through and she doesn't want to stay with a stranger so looking for someone else. Think she is also going to look at permitted work to try and gain some money to pay for the mortgage herself. Her CPN and doctor think she is not ready for full time work yet but hopefully will be in the near future so hopefully this will all be a short term thing.