Rent a Room Scheme when the 'lodger' is a partner?

bye_bye_band_G

Can anyone help with this query please?
My daughter has received a letter from HMRC saying they have info which leads them to believe she's receiving rent on her property (which is owned solely by herself).

Her partner does live there, he pays her £300 per month as well as his half of the bills.

Having been very worried that perhaps she should have been declaring this and paying tax on it, we then remembered the Rent a Room Scheme - obviously the £3600 per year falls well under the threshold of £7500.

BUT - does the fact that he is a partner preclude him from being classed as a lodger? And mean that she can't use this scheme? Is she liable to pay tax on the £300/month?

By the way, this question is not about whether paying her money gives him a claim on the property, they are getting married in a couple of months, and this is not an issue for them. Neither is there any complications from any Housing Benefit claim for him - he's not on any benefits.

We just want to know if a partner can be classed as a lodger for the purposes of the Rent a Room Scheme.

Thanks for any advice or help.

Simon_Brown_2

This sounds very odd.

Will HMRC now be asking all cohabiting couples who contributes what to their household bills etc?
Does your daughter own another property anywhere?

silvercar

She should just reply that she is only living with her partner.

Simon_Brown_2

I would write back to HMRC asking exactly what it is they wish to know.

davidmcn

He's not a lodger, but the money he's contributing towards bills isn't "income" anyway for the purposes of Income Tax. I wonder if the "information" they have received is about something else entirely.

bye_bye_band_G

No she doesn't own another property.

Maybe they think she is renting out her flat to her partner but living in our (her parents') home, as this is where they sent the letter. She will never have changed the address HMRC have on file for her as it didn't seem important, we always pass any mail on. She doesn't own any part of our house.

??

Simon_Brown_2

bye_bye_band_G wrote: »

No she doesn't own another property.

Maybe they think she is renting out her flat to her partner but living in our (her parents') home, as this is where they sent the letter. She will never have changed the address HMRC have on file for her as it didn't seem important, we always pass any mail on. She doesn't own any part of our house.

??

That's probably the most likely explanation.

HMRC are probably just cross-matching address details and sending out automatic letters to anyone who appears to not be occupying their own (sole) property.

Best bet is probably for your daughter (not you) to write back to them.
They will reply, eventually.
Don't bother trying to phone them.

Simon_Brown_2

PS I think (legally?) a lodger must have their own bedroom - but share other parts of the house.

Presumably, your daughter and her boyfriend share a bedroom? I think that excludes someone from being a lodger.

I believe, somewhere, there resides a govt document on what they consider constitutes a single ''household''.
This all sounded very Kafkaesque at first, but sadly it is true.

A lodger, by definition, cannot be part of your daughter's ''household'' - even though they live in the same house/flat.

(I would ask HMRC about this document in the reply - maybe they can have fun locating it for you..!)

bye_bye_band_G

Oh I won't be writing to them - or at least not signing it. I just have always acted as the unofficial family financial advisor, you wouldn't believe how often all the grown up kids come and ask me .......what shall I do about this money matter, that money matter! :rotfl:

bye_bye_band_G

Simon_Brown wrote: »

Presumably, your daughter and her boyfriend share a bedroom? I think that excludes someone from being a lodger.

Yes they do, but I will advise her not to include any descriptions of where anyone sleeps. I think her reply should be on a 'need to know' basis.

In fact, as the letter starts off by saying "If you have never rented out a property please let us know in writing so we can update our records", should her reply be simply "No, I have never rented out a property"??

That's not a lie based on what the situation is, is it? They couldn't claim this was a lie and penalise her could they?

Soot2006

If she is living with her partner in her property then she is not renting out her property!



Assume she pays council tax in her name on her property?