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

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  • sheramber
    sheramber Posts: 22,396 Forumite
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    It doesn't have anything to do with having a lodger if it is referring to receiving rent.

    She only needs to confirm she does not receive any rent and also update her current address.

    The address not being updated is probably what instigated the enquiry.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    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.
    Tell her to move out properly and change all her addresses.
  • Yes

    the letter starts off by saying "If you have never rented out a property

    y?

    If the letter says that, I would also point out to HMRC that they appear to be using incorrect English, as a landlord LETS a property, whilst a tenant RENTS a property.

    It is impossible for anyone (who speaks English correctly) to RENT OUT a property.
  • 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.
    ?

    HMRC will probably consider that they DO need to know, as the British govt is very intrusive.
  • She does pay council tax in her name, everything is above board.

    And yes, the letter does say exactly as I quoted above!!
  • Comms69
    Comms69 Posts: 14,229 Forumite
    10,000 Posts Third Anniversary Name Dropper
    Living as one household; it’s fine
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    whilst the automatic reaction of some on here is never cooperate with HMRC, the facts are:
    a) her address recorded by HMRC is not the property they are enquiring about so a question does she receive rent is a perfectly logical response to that position - she should write back saying : no

    b) the reality is she lives in her property as her main home. She pays council tax on it.

    c) her BF lives with her. They form a single household for tax purposes. They share bills between them. I hope your daughter is not claiming single person discount on her council tax? HMRC can / will cross match to the council tax records so they will soon see the BF lives there. It is pointless to deny that as it will just make her look evasive. That may, or may not, already be part of what triggered the enquiry.

    d) the fact BF pays an additional £300 over and above share of bills is not income for her, it is his contribution to the household and, as you say they are getting married so any claim on the property is irrelevant, then the status of the £00 is his share of the property, not her income. That is the truth and that is what should be said. No daughter cannot claim it is income under the rent a room scheme since it very obviously is not and would soon unravel if further challenged.


    summary
    write to HMRC and tell them: no rent, single household with co-habiting BF
  • Thank you 00ec25 that's a really good summary. No they don't claim single person council tax discount.
    As long as the £300 on top of the bills (which in reality helps her pay her mortgage) is not classed as rent then it seems the single cohabiting household is the way forward rather than Rent a Room with her partner described as a lodger.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    If the letter says that, I would also point out to HMRC that they appear to be using incorrect English, as a landlord LETS a property, whilst a tenant RENTS a property.

    It is impossible for anyone (who speaks English correctly) to RENT OUT a property.
    The OED disagrees:
    2. transitive. To let (property) for rent or payment; to hire out to someone. Frequently with the person as indirect object. Also in extended use.
    3. transitive. To pay rent for (land, buildings, etc.); to take possession of, hold, occupy, or use, by payment of rent. Also intransitive.
  • sevenhills
    sevenhills Posts: 5,938 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    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.??


    Have we got the issues mixed up?


    If you(parents) own the house, are HMRC asking if they(daughter) pays rent?
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