Money received from daughter for living at home

Pollycat

maman wrote: »

Well done. I'm sure OP wouldn't want to be making money from her DD either. Extra food is fine but not bills you'd have to pay anyway. Op said the reason they were moving in was to save for a deposit.

If the OP's bills increased - e.g. electricity, gas, water - why shouldn't the daughter & partner contribute towards that?

PeacefulWaters

maman wrote: »

Well done. I'm sure OP wouldn't want to be making money from her DD either. Extra food is fine but not bills you'd have to pay anyway. Op said the reason they were moving in was to save for a deposit.

My bills went down significantly when the kids moved out.

I assumed they increase if the kids moved back in.

silvercar

Pollycat wrote: »

If the OP's bills increased - e.g. electricity, gas, water - why shouldn't the daughter & partner contribute towards that?

To support her offspring saving money for a deposit?

Pollycat

silvercar wrote: »

To support her offspring saving money for a deposit?

I can see that point.
But my reply was directed at this comment:

maman wrote: »

Well done. I'm sure OP wouldn't want to be making money from her DD either. Extra food is fine but not bills you'd have to pay anyway. Op said the reason they were moving in was to save for a deposit.

Yes, the OP would still have to pay bills but the consumption will possibly go up.

I can't see the difference between charging daughter and partner extra because the OP would be buying more food and charging the daughter and partner extra because (or example) the water bill is higher because an extra 2 people are having a shower every day.

I'm not saying it's right to charge the daughter extra for bills but if Maman thinks it's OK to charge for additional food costs, additional costs for bills is no different.

Note that I said additional above and increased in my earlier post:

Pollycat wrote: »

If the OP's bills increased - e.g. electricity, gas, water - why shouldn't the daughter & partner contribute towards that?

Mojisola

h935glf wrote: »

My daughter and her boyfriend want to move into my daughters old room in our house while they save to buy a flat. They have offered to pay us an, as yet, undefined amount, to cover bills, food and possibly some rent.

It's important to sort out the practical arrangement as well as money - are they going to generally the share the housework or do specific jobs, cook dinner for everyone a couple of times of week or make all their own meals separately, etc?

It can sometimes be the little things that cause problems in a multi-generational household - easily resolved if dealt with quickly but a nightmare if left to fester.

Guest101

h935glf wrote: »

My daughter and her boyfriend want to move into my daughters old room in our house while they save to buy a flat. They have offered to pay us an, as yet, undefined amount, to cover bills, food and possibly some rent. I assume that this monthly payment would be seen by HMRC as income and would therefore be taxable and would need to be declared on my tax return. Is this assumption correct?
Many thanks

No. It's household payment.

Guest101

Sleazy wrote: »

To answer your original question - not sure whether this would be covered under the "rent-a-room" scheme whereby you can rent a room for up to £7500 per annum I think and not have to declare it.

https://www.gov.uk/rent-room-in-your-home/the-rent-a-room-scheme

It probably would be covered by the scheme anyway, but as it's a single family, the money is considered household not income

Malthusian

Do you need the money? And do you want their company for its own sake?

If the answer is "no" and "no" I don't see the point of accepting money from them. It just means they will be under your feet for longer as they will have less spare income to save towards the flat.

Obviously the danger with letting them stay rent-free is that they get a little too used to the cushy arrangement. The solution to that is to charge them for "bills" but put the money aside, to be handed back to them when they are ready to buy.

I am always sceptical of these arrangements. If someone was spending all their income when they were renting they may continue to spend all their income when they are living with their parents.

maman

maman wrote: »

Well done. I'm sure OP wouldn't want to be making money from her DD either. Extra food is fine but not bills you'd have to pay anyway. Op said the reason they were moving in was to save for a deposit.

To clarify I meant not bills OP would have paid anyway. So, in more detail, council tax could stay the same (unless OP is currently a single occupant). Broadband or TV/phone package might be another example but, of course, an increased bill (like metered water) could be shared.


It's just a bit of a hobby horse of mine. I've never wanted to make money from my children or see them as a house share but I know not everyone agrees.:)

pearl123

It's family! Why should the tax man be informed?
If she's paying a huge rent then maybe, but otherwise not.