How to declare money from DD

74jax

If you receive ‘housekeeping’ from your child what is the usual way to declare this?

The money will be going from my DD to myself in my bank (account is my name only). It’s not for a property I own, but my husband who owns it doesn’t want to receive money from her, however I don’t think she should stay there for free so we have reached an agreement where she stays there, pays me money each month (but unknown to her will get it back for a deposit or such like in future).

Just wondering what you all do – this can be moved to the tax board if the mods think it is more suitable there. I’m guessing I can’t declare it as rent as how can I rent something I don’t own? Would it be a gift from DD to me, then in a few years be a gift back to her?

LilElvis

I would ask on the tax board. HMRC might not believe that it's a gift and deem it to be rental income that your husband is avoiding paying tax on.

74jax

LilElvis wrote: »

I would ask on the tax board. HMRC might not believe that it's a gift and deem it to be rental income that your husband is avoiding paying tax on.

I think I have found my answer, I've looked on previous returns and I can add it under other Miscellaneous income.


When it goes back to my DD I believe I gift it to her - as long as I don't die with 7 years she should be ok


Hubby point blank refuses to take anything from her as it's only short term, I understand to a degree, although I'm not as easy going on this stance and think she should pay her way. I had to pay my parents when I was younger, and it's been drilled into her whether she lives at home with us or elsewhere she pays her way, to go back on that (to me) is wrong. But then I'm seen as the mean one....

Mojisola

74jax wrote: »

we have reached an agreement where she stays there, pays me money each month (but unknown to her will get it back for a deposit or such like in future).

74jax wrote: »

Hubby point blank refuses to take anything from her as it's only short term, I understand to a degree, although I'm not as easy going on this stance and think she should pay her way.

I had to pay my parents when I was younger, and it's been drilled into her whether she lives at home with us or elsewhere she pays her way, to go back on that (to me) is wrong.

But she's not going to be paying her way because you're going to give it all back to her.

Why not compromise and see if she will agree to put a set amount into savings of some sort each month. The result is the same but your daughter will be taking responsibility for her money and your husband may be happier with that arrangement.

LilElvis

74jax wrote: »

I think I have found my answer, I've looked on previous returns and I can add it under other Miscellaneous income.


When it goes back to my DD I believe I gift it to her - as long as I don't die with 7 years she should be ok


Hubby point blank refuses to take anything from her as it's only short term, I understand to a degree, although I'm not as easy going on this stance and think she should pay her way. I had to pay my parents when I was younger, and it's been drilled into her whether she lives at home with us or elsewhere she pays her way, to go back on that (to me) is wrong. But then I'm seen as the mean one....

If you have instilled her with a good sense of financial responsibility then, presumably, if you sat her down and told her that you were prepared to let her live rent free as long as she saved the money towards a future deposit then that is what she would do. Taking rent from her with the intention of returning it to her says that you don't trust her to do the right thing, so you're going to treat her like a child rather than an adult.

My sister and I were allowed to live rent-free with the proviso that we saved towards our deposits so we could buy our homes sooner. Both of us did so and I've been effectively mortgage free since I was 43. Our parents taught us financial responsibility and we were very aware, and grateful, that they were giving us a great opportunity to get on the housing ladder sooner rather than later. I know I would have been incredibly offended if my parents had done what you are proposing.

OscarFoxtrot

If you live as one household then there is nothing to declare.

AnotherJoe

74jax wrote: »

I think I have found my answer, I've looked on previous returns and I can add it under other Miscellaneous income.


When it goes back to my DD I believe I gift it to her - as long as I don't die with 7 years she should be ok


Hubby point blank refuses to take anything from her as it's only short term, I understand to a degree, although I'm not as easy going on this stance and think she should pay her way. I had to pay my parents when I was younger, and it's been drilled into her whether she lives at home with us or elsewhere she pays her way, to go back on that (to me) is wrong. But then I'm seen as the mean one....

The issue with all this is that it looks as if your husband is evading income tax because he's not declaring rental income and is passing it to you instead. telling HMRC "oh well we intend to give that to our daughter is irrelevant" and not an excuse.



I think the cleanest option is to do what others have suggested, tell her there's no rent as long as she saves the equivalent /agreed amount for a house deposit. If its saved into a LISA that also avoids the temptation to splurge it on a holiday or whatever as well.

gettingtheresometime

I never declared any money that my son gave me for rent ....and I never gave it back to him either.......


........says she walking away having light the fuse

Mojisola

gettingtheresometime wrote: »

I never declared any money that my son gave me for rent ....and I never gave it back to him either.......


........says she walking away having light the fuse

If you all live in the same house, there's no need to declare it - it's not 'earnings', it's a contribution to the household expenses.

74jax's daughter will be living in her own flat, owned by her father.

74jax

Mojisola wrote: »

But she's not going to be paying her way because you're going to give it all back to her.

Mojisola wrote: »

74jax's daughter will be living in her own flat, owned by her father.

She doesn't know she is getting it back though, we didn't want to tell her that. I was brought up on the rule of thirds - spend and third save a third and a third to bills. This is what I've 'tried' to instill in DD too. So she has worked out her bills, and added a bit on to give me, she is saving the same amount and has the same amount left over.


I just quoted the other bit about 'owned by her father' as it was really nice to read and made me smile. He isn't her dad but the comment was lovely as made me feel..... I don't know........ i must be getting emotional with my old age


Also edited to say, I know it needs declaring - hence the title, I just wondered if there was anyone similar and what they did. But I think I should have maybe looked a tax return first rather having this as my first point of call, as I believe I've found the right place now (misc other). Just shows my immediate reaction is 'I must ask MSE'........

need_an_answer

So are you all living in the same property and she's just paying you housekeeping?

or is she moving into a property that is owned solely by your husband,her stepdad?

2 different things and I believe if its the first option theres nothing to declare,if its the second option then I believe that the whole LL/tenancy thing might come into play.