Can lodger work from home?

1404

Hi all,

I have a potential lodger who works full time in an office. However, they also earn money on the side by teaching languages in their free time online from home. As they earn more than £1000 per year they pay tax on this additional income. I use the Rent-A-Room scheme and often have two lodgers.

My question: is there any reason why this may cause me issues? Ie, with my mortgage company, the Rent-A-Room scheme, my insurance? Etc etc. 

I personally can't see why it would be an issue but as if often the case there may be some regulation or other and I'd rather know now before they move in. 

Cheers. 

Bookworm105

read your mortgage terms and conditions, they will be relevant to you rather than us play guessing games.

Newbie_John

I can't imagine that kind of work causing any issues whatsoever, it would be different if they had people coming in - potential theft, some sort of damage to the house by random people - in this case you can't tell if they're teaching or playing a game..

user1977

HMRC only care about how much rent you're getting.

I doubt anybody has a problem with working from home these days (in the sense of sitting by yourself using a computer/phone) but if you want to know, read your mortgage conditions and insurance policy. I wouldn't expect them to apply a more stringent policy to lodgers than to yourself though.

I presume you had already checked that having a lodger was ok with your lender/insurer?

gwynlas

I should imagine that the only issue for you would be increased utility costs when thet are WFH.

Can you use the rent a room scheme for more than one lodger?

1404

gwynlas said:

I should imagine that the only issue for you would be increased utility costs when thet are WFH.

Can you use the rent a room scheme for more than one lodger?

Yes, my understanding is that you can rent out as many rooms as you want under the scheme.

But of course if you have 3+ lodgers then other rules and regs kick in as it becomes a HMO.

1404

user1977 said:

HMRC only care about how much rent you're getting.

I doubt anybody has a problem with working from home these days (in the sense of sitting by yourself using a computer/phone) but if you want to know, read your mortgage conditions and insurance policy. I wouldn't expect them to apply a more stringent policy to lodgers than to yourself though.

I presume you had already checked that having a lodger was ok with your lender/insurer?

Yes, my lender allow two lodgers. And my home insurance policy was selected with lodgers in mind. 

My only questions for the lender/insurer now is if they are ok with WFH. WFH is pretty common now so would be disappointing if they have an issue with it. 

RAS

This assume your entire earning from lodgers is less than £7500?

Charge extra for additional utilities and you might just go over? Even if your "net profit" reduces.

1404

RAS said:

This assume your entire earning from lodgers is less than £7500?

Charge extra for additional utilities and you might just go over? Even if your "net profit" reduces.

It's over £7500 for two lodgers and I do a self assessment tax return each year. 

user1977

1404 said:

user1977 said:

HMRC only care about how much rent you're getting.

I doubt anybody has a problem with working from home these days (in the sense of sitting by yourself using a computer/phone) but if you want to know, read your mortgage conditions and insurance policy. I wouldn't expect them to apply a more stringent policy to lodgers than to yourself though.

I presume you had already checked that having a lodger was ok with your lender/insurer?

My only questions for the lender/insurer now is if they are ok with WFH. WFH is pretty common now so would be disappointing if they have an issue with it. 

You don't need to question them about it (and I wouldn't rely on the answers you get if you do). Just read the mortgage conditions and your insurance policy.

Mr.Generous

On landlord insurance when you read the whole small print it says something like "The property can only be used as a domestic residence" but when I rang and questioned this they confirmed that computer based, phone based or just paperwork working from home was fine. They said no production of pysical product, even samples, no customer or colleague meetings or visits and it was fine. So many people do an occasional day WFH (ie getting the washing done, hoovering, making the bed and walking the dog when they should be working) that policies will almost certainly allow it. I have had this with several policies from different companies and each time the agent has checked with the underwriters and it's been ok. Just make a quick call and note the date and time of your call and who you spoke to.