House sitting - tax implications? (UK)

Chia86

Hi all,


Apologies if this has been discussed before but I didn't manage to find anything exactly like my situation. Basically I've been offered a place to live rent free, and I'm wondering whether this would have any affect on taxes etc.?
I'm in full-time work and also doing my MA, should that make a difference.


I've called it house sitting in the title though it's not exactly that, the owner will be living there as well; I guess you could call me a lodger however he doesn't want me to pay any rent, he just wants someone to live there permanently so when he goes away (I believe he has family abroad so often goes away for a few weeks at a time) there's someone there to look after the house and his dog.
When he's there he'd like someone just to keep him company, help around the house when needed and help him manage his dog (he's elderly and newly divorced, and seems to find managing by himself a bit of a hassle).


I'm guessing (hoping) this shouldn't cause issues for either but as I can't seem to find a clear answer I thought I'd check if anyone here happens to know? :think:
I would insist on having some kind of paperwork done so I have proof of address and so we have some basic guidelines down, but that would be the extent of the papertrail; all the bills etc. would remain under his name.

pinklady21

If he is not paying you anything, what income would you have from this arrangement that could be taxed?
Assuming there is no income then I doubt there would be any tax liability. His CT bill might rise as he might no longer qualify for the single person deduction, but that would not be your concern if he is not charging you council tax.

Chia86

Thanks for the reply!


I was mainly thinking if me helping him look after the house and dog in exchange for free rent would be seen to move into the realm of bartering (if they classify me as house sitter/pet sitter/carer/whatever), and whether this could cause issues down the line. Not really sure if this is a taxable issue in the UK anyway?


I'm probably overthinking this, but I just don't want to end up with a huge bill in a year's time.

00ec25

Chia86 wrote: »

I'm probably overthinking this, but I just don't want to end up with a huge bill in a year's time.

likely you are

"bartering" (free) accommodation in return for what you describe is not a taxable activity.

what is taxable in the UK is :
either: a trading activity. He provides something, you pay him for it
or: a benefit in kind. Your employer gives you something in addition to paying you cash wages

neither the above apply. You are indeed over thinking

free accommodation provided by a resident (or not resident for that matter) landlord in "exchange" for you giving services to him is not a taxable activity. It is just bad business sense shown by the LL who could have got real money if he'd tried harder

diggingdude

Having seen the news recently I hope there won't be any bedroom services being exchanged for rent