Lodger, maximizing the money they can give us without having to do taxes

needabed

You all seem to love paying taxes... I'm just looking for legal ways to reduce my taxes...

What if I had a lodger who works in the building industry and they were to help me get the best deal on a kitchen and bathroom and we installed it together like a DIY job?

Pixie5740

needabed wrote: »

You all seem to love paying taxes... I'm just looking for legal ways to reduce my taxes...

What if I had a lodger who works in the building industry and they were to help me get the best deal on a kitchen and bathroom and we installed it together like a DIY job?

There's a difference between tax avoidance (legal) and tax evasion (illegal) and you've not yet proposed anything that's the former. The only legitimate solution you've come up with will end up costing your children more in tax that you would have to pay in come tax for taking in a lodger.

Comms69

needabed wrote: »

You all seem to love paying taxes... I'm just looking for legal ways to reduce my taxes...

What if I had a lodger who works in the building industry and they were to help me get the best deal on a kitchen and bathroom and we installed it together like a DIY job?

Personally I pay what I need to, because my morals require me to.


By all means reduce your tax, and then when you're waiting 14 weeks for an operation, you realise that your actions have consequences.


What if you had a lodger who only wanted a professional relationship, IE room in exchange for money, and didn't want to be your on-site maintenance....


Woe betide any lodger moving into your home, there's 4 adults there; all expecting him or her to work on top of the day job.

Carl31

7500 a year is 625 a month, isn't that enough for a room?

Soundgirlrocks

Don't forget the potential capital gains element if you rent out more than one room!

sevenhills

Carl31 wrote: »

7500 a year is 625 a month, isn't that enough for a room?

The OP is wanting to let out 2 rooms. I let one room at £325, which would leave £300 for another room, but I guess it would be more if in the South of England.

HampshireH

If i was 18/19 and my parents robbed me of my FTB status and the benefits associated just so they could avoid paying tax I would be really angry. So selfish.

Your 18/19 year olds may struggle to move on in life because you clipped their wings if you put them on the deeds.

antrobus

needabed wrote: »

You all seem to love paying taxes... I'm just looking for legal ways to reduce my taxes...

What if I had a lodger who works in the building industry and they were to help me get the best deal on a kitchen and bathroom and we installed it together like a DIY job?

Then you'd both be evading tax.

antrobus

HampshireH wrote: »

If i was 18/19 and my parents robbed me of my FTB status and the benefits associated just so they could avoid paying tax I would be really angry. So selfish.

Your 18/19 year olds may struggle to move on in life because you clipped their wings if you put them on the deeds.

Don't worry, you can't just put someone on the deeds. The someone has to consent and sign the transfer form.

JuzaMum

I used the rent a room scheme for 10 years. I always filed a tax return even in the years I didn't have any tax due (I believe this is required). On the years I went over the rent a room allowance I was taxed as with other earnings - 20% when I was working - 0% when I was not. Even when I had to pay some tax most of the money went in my pocket so it was worthwhile. Would you turn down overtime at work because you would be taxed on it?

If you are 20% rate tax payer and you get £10,000 from letting rooms you would only pay £500 to the tax man and that's not too painful