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Not paying rent in exchange for jobs in the property .

 As a self employed person whose work in intermittent ,   If you are living in a relatives property and share all facilities , ie gas, electric , heating  and pay nothing .What is your tax situation , can it be classed unpaid work ? 

Comments

  • Sandtree
    Sandtree Posts: 10,628 Forumite
    10,000 Posts Fourth Anniversary Name Dropper
    What is the formality of the arrangement? Is there an agreement that they'll do X hours of work in the house in exchange for free lodgings? What if there isnt X hours of work to do? Is it more informal and just expected that they'll chip in or take the lions share?

    In some cases a fair value needs to be applied to the payment in kind but assuming it is all informal and a general understanding rather than formal agreement then most wouldnt be declaring anything
  • Sandtree
    Sandtree Posts: 10,628 Forumite
    10,000 Posts Fourth Anniversary Name Dropper
    As we know rent is expense , so the person is effective gaining a benefit of around £150  a week for doing virtually nothing
    Same could be said for every adult child who returns to their parents home rent free after uni etc.
  • AskAsk
    AskAsk Posts: 3,048 Forumite
    1,000 Posts Fourth Anniversary Name Dropper Photogenic
    who are you thinking is doing the tax dodge?  the person who is self employed or the relative for not declaring the rent?
  • Jillanddy
    Jillanddy Posts: 717 Forumite
    500 Posts Name Dropper
    As we know rent is expense , so the person is effective gaining a benefit of around £150  a week for doing virtually nothing . Surely a form of tax avoidance ?  If the person was in a partnership  then that is  different . I understand  helping out cutting the grass etc is fine . But to declare a person paid no rent because of the jobs he carried out at a property is over and above what is allowed ? 
    You are obviously trying to get someone "done" for something. Really, butt out. It isn't your business. If I want to give my relative a room in my house for free, and he wants to fix my roof, it really isn't any business of yours.
  • Jillanddy
    Jillanddy Posts: 717 Forumite
    500 Posts Name Dropper
    NCC1701-A said:
    Who needs enemies when you have relatives?
  • xylophone explained the position in the last post on your other thread.

    Either (a) the property is sold and the proceeds divided equally between you and your two siblings, or (b) your one third in the property is bought out (either by your sister alone or by both your sister and the third sibling).

    If neither of those two courses of action can be agreed upon, you will need to consider taking legal action to enforce a sale.

    If your sister is the only one of the three owners living in the property, she should be paying you and your brother rent.  How she chooses to fund that rent is - as others have said - none of your business.
  • Jillanddy
    Jillanddy Posts: 717 Forumite
    500 Posts Name Dropper
    So basically, you just wanted someone to tell you what you wanted to hear? "How it should be" (in your opinion) and "how it is" are very different things. You need to get proper legal advice about your family rows, because strangers opinions count for nothing. 
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