House as location for filming TV show

sjoh0961

Hi all. 

Sorry if there’s a thread for this. I can’t find anything recent. 

I posted in Boost Your Income and the only clear advice I got there was to try this forum. 

We’ve got an offer of a reasonable amount of money to use our house (16k, this isn’t a thread on whether we should do it or not, as we’re now in the middle of it). They’re also putting us up in rented accommodation for the period. They have indemnity insurance for anything third party. Their contract undertakes to return the house to the original condition or better. 

My question is if anyone knows the tax implications and how I should/could deal with them. 

For example, is this income from property (my wife and I would each have £1k allowance before it was taxed?) or is this ‘rental’ income? Does that make a difference? We’re both 40% payers - is there a way we can minimise any tax we do have to pay on it? Etc

Thanks!

Jeremy535897

It is rental income (which is income from property). The property income allowance should be available. Assuming the property is jointly owned 50:50, the income will be assessed equally between you. pension contributions, so long as they are within your annual allowance, and no more than your earned income, will reduce the tax payable.

Dazed_and_C0nfused

Not a factor here I don't think due to the nature of the let but had it been a normal residential let it seems possible you would have each been able to claim rent a room relief even though you have moved out of the property for a short time.

Jeremy535897

Dazed_and_C0nfused said:

Not a factor here I don't think due to the nature of the let but had it been a normal residential let it seems possible you would have each been able to claim rent a room relief even though you have moved out of the property for a short time.

Maybe, but the £7,000 limit is shared when jointly held property is involved.

sjoh0961

So is the answer that we have to declare it via our self assessment? And the best plan is to declare half of it each so that we each get the £1000 allowance? I earn more, but we're both over the threshold, so nothing to gain from one of us declaring more?
And if we paid some of it into a pension rather than just banking it, we would not have to pay tax on the amount that went into the pension?
Is there a way of declaring it that would allow us to access the 7k allowance?
Thanks!

Jeremy535897

If you own it jointly 50:50, you have to declare the income 50:50.

My post of 2 October explains that and the pension rules.

The £7,000 rent a room relief is irrelevant in these circumstances.

Dazed_and_C0nfused

sjoh0961 said:

So is the answer that we have to declare it via our self assessment? And the best plan is to declare half of it each so that we each get the £1000 allowance? I earn more, but we're both over the threshold, so nothing to gain from one of us declaring more?
And if we paid some of it into a pension rather than just banking it, we would not have to pay tax on the amount that went into the pension?
Is there a way of declaring it that would allow us to access the 7k allowance?
Thanks!

Paying into a pension wouldn't change the amount taxed whatsoever.

It would mean more of your income was taxed at 20% and therefore less at 40% but it wouldn't alter the amount of taxable income.

ejma

sjoh0961 said:

Hi all. 

Sorry if there’s a thread for this. I can’t find anything recent. 

I posted in Boost Your Income and the only clear advice I got there was to try this forum. 

We’ve got an offer of a reasonable amount of money to use our house (16k, this isn’t a thread on whether we should do it or not, as we’re now in the middle of it). They’re also putting us up in rented accommodation for the period. They have indemnity insurance for anything third party. Their contract undertakes to return the house to the original condition or better. 

My question is if anyone knows the tax implications and how I should/could deal with them. 

For example, is this income from property (my wife and I would each have £1k allowance before it was taxed?) or is this ‘rental’ income? Does that make a difference? We’re both 40% payers - is there a way we can minimise any tax we do have to pay on it? Etc

Thanks!

I'm interested in this also could you please tell me where to start?

Bookworm105

ejma said:

sjoh0961 said:

Hi all. 

Sorry if there’s a thread for this. I can’t find anything recent. 

I posted in Boost Your Income and the only clear advice I got there was to try this forum. 

We’ve got an offer of a reasonable amount of money to use our house (16k, this isn’t a thread on whether we should do it or not, as we’re now in the middle of it). They’re also putting us up in rented accommodation for the period. They have indemnity insurance for anything third party. Their contract undertakes to return the house to the original condition or better. 

My question is if anyone knows the tax implications and how I should/could deal with them. 

For example, is this income from property (my wife and I would each have £1k allowance before it was taxed?) or is this ‘rental’ income? Does that make a difference? We’re both 40% payers - is there a way we can minimise any tax we do have to pay on it? Etc

Thanks!

I'm interested in this also could you please tell me where to start?

start what? sjoh0961 last logged in on 6 Nov 23 so unlikely they are still here to respond to your question.
- how to pay tax?
- how to let a property?

flaneurs_lobster

Bookworm105 said:

ejma said:

sjoh0961 said:

Hi all. 

Sorry if there’s a thread for this. I can’t find anything recent. 

I posted in Boost Your Income and the only clear advice I got there was to try this forum. 

We’ve got an offer of a reasonable amount of money to use our house (16k, this isn’t a thread on whether we should do it or not, as we’re now in the middle of it). They’re also putting us up in rented accommodation for the period. They have indemnity insurance for anything third party. Their contract undertakes to return the house to the original condition or better. 

My question is if anyone knows the tax implications and how I should/could deal with them. 

For example, is this income from property (my wife and I would each have £1k allowance before it was taxed?) or is this ‘rental’ income? Does that make a difference? We’re both 40% payers - is there a way we can minimise any tax we do have to pay on it? Etc

Thanks!

I'm interested in this also could you please tell me where to start?

start what? sjoh0961 last logged in on 6 Nov 23 so unlikely they are still here to respond to your question.
- how to pay tax?
- how to let a property?

How to get your house on the telly?

Have an enormous kitchen with a central island and very little furniture in the living areas.