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Rent a room and bills

I'll be renting two rooms in a house. The total, including bills, will take me a few hundred over the amount allowed by the rent a room scheme. Would asking people to pay 1/3 of council tax alongside a slightly lower rent comply with the rules, while also letting me stay below the £7500 threshold?

Comments

  • anselld
    anselld Posts: 8,491 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    No you cant do that.
    You can just claim the full RaR and pay tax on the rest. You don’t need to stay below the threshold.
  • sevenhills
    sevenhills Posts: 5,938 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    I'll be renting two rooms in a house. The total, including bills, will take me a few hundred over the amount allowed by the rent a room scheme. Would asking people to pay 1/3 of council tax alongside a slightly lower rent comply with the rules, while also letting me stay below the £7500 threshold?


    Is it worth the paperwork?
  • Thanks. Is contribution to bills like gas not counted towards the rent-a-room allowance, then, but contribution to CT would be?
    sevenhills wrote: »
    Is it worth the paperwork?

    It could be here, if it saved me the paperwork of a tax return... I may be best just paying tax on the extra, though.
  • anselld
    anselld Posts: 8,491 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Thanks. Is contribution to bills like gas not counted towards the rent-a-room allowance, then, but contribution to CT would be?



    It could be here, if it saved me the paperwork of a tax return... I may be best just paying tax on the extra, though.

    With RaR all contributions count as income and you cannot claim any expenses. The 7500 is an alternative to expenses, you can’t have both.
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