Can lodger work from home?

pieroabcd

1404 said:

I've actually decided in the last couple of days that when one of my two lodgers leave I won't be replacing them. Will have one lodger and earn less than the £7500 a year. I've grown weary of the worry about compliance and the requirement to complete a self assessment tax return each year. I will also be able to build up some PRR months just in case I need them when it comes time to sell. 

I think that you will still need to file the self assessment each year as long as you have a lodger.

1404

pieroabcd said:

1404 said:

I've actually decided in the last couple of days that when one of my two lodgers leave I won't be replacing them. Will have one lodger and earn less than the £7500 a year. I've grown weary of the worry about compliance and the requirement to complete a self assessment tax return each year. I will also be able to build up some PRR months just in case I need them when it comes time to sell. 

I think that you will still need to file the self assessment each year as long as you have a lodger.

Do you have access to Google? 

pieroabcd

1404 said:

pieroabcd said:

1404 said:

I've actually decided in the last couple of days that when one of my two lodgers leave I won't be replacing them. Will have one lodger and earn less than the £7500 a year. I've grown weary of the worry about compliance and the requirement to complete a self assessment tax return each year. I will also be able to build up some PRR months just in case I need them when it comes time to sell. 

I think that you will still need to file the self assessment each year as long as you have a lodger.

Do you have access to Google? 

Yes
https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return

1404

mybestattempt said:

1404 said:

mybestattempt said:

1404 said:

Emily_Joy said:

subjecttocontract said:

It seems that HMRC haven't moved with the times. WFH is the new normal for a large proportion of working age people AND surprise, surprise they WFH during the daytime. I guess HMRC might eventually get around to understanding how the new world order operates ! Although I wouldnt expect to much to soon.

I am actually a little confused now. Occasionally I work from home - for instance, if I need to finish important job-related paperwork I prefer to stay at home till it is done because there are less distractions than at workplace. Do I need to tell my landlord?

If your landlord uses Rent A Room Scheme for your rent then you can only work from home in the evenings and weekends.

If your landlord doesn't use Rent A Room Scheme, and instead pays tax on your whole rent (and claims expenses against it) then you can work during the weekdays.

That seems to be the situation.

It isn't the situation at all.

A lodger working at home occasionally during daytime hours would be viewed by HMRC in the same way as a lodger working at home on evenings and/or weekends.

I would add that lodger has no need or responsibility to become involved in the landlord's tax affairs.

Your post didn't mention the Rent A Room Scheme. That's the key part. Under Rent A Room is the requirement to limit work to evenings and weekends. We've covered this quite a lot on this thread. And the wording of the guidance has been provided.

I'm fully aware of the guidance, I believe I provided the link to it earlier in  the thread.

There is no hard and fast rule in the legislation which determines which days of the week or specific times of the day a genuine lodger renting residential accommodation in a landlord's home is working from home for the rent a room method to apply or not.

Tell that to the person on this thread who lost their Rent A Room Scheme access because of lodger daytime working.

Emily_Joy

1404 said:

mybestattempt said:

1404 said:

mybestattempt said:

1404 said:

Emily_Joy said:

subjecttocontract said:

It seems that HMRC haven't moved with the times. WFH is the new normal for a large proportion of working age people AND surprise, surprise they WFH during the daytime. I guess HMRC might eventually get around to understanding how the new world order operates ! Although I wouldnt expect to much to soon.

I am actually a little confused now. Occasionally I work from home - for instance, if I need to finish important job-related paperwork I prefer to stay at home till it is done because there are less distractions than at workplace. Do I need to tell my landlord?

If your landlord uses Rent A Room Scheme for your rent then you can only work from home in the evenings and weekends.

If your landlord doesn't use Rent A Room Scheme, and instead pays tax on your whole rent (and claims expenses against it) then you can work during the weekdays.

That seems to be the situation.

It isn't the situation at all.

A lodger working at home occasionally during daytime hours would be viewed by HMRC in the same way as a lodger working at home on evenings and/or weekends.

I would add that lodger has no need or responsibility to become involved in the landlord's tax affairs.

Your post didn't mention the Rent A Room Scheme. That's the key part. Under Rent A Room is the requirement to limit work to evenings and weekends. We've covered this quite a lot on this thread. And the wording of the guidance has been provided.

I'm fully aware of the guidance, I believe I provided the link to it earlier in  the thread.

There is no hard and fast rule in the legislation which determines which days of the week or specific times of the day a genuine lodger renting residential accommodation in a landlord's home is working from home for the rent a room method to apply or not.

Tell that to the person on this thread who lost their Rent A Room Scheme access because of lodger daytime working.

Assuming you are correct - how the landlord is supposed to know what kind of stuff the lodger is doing on their laptop?

1404

Emily_Joy said:

1404 said:

mybestattempt said:

1404 said:

mybestattempt said:

1404 said:

Emily_Joy said:

subjecttocontract said:

It seems that HMRC haven't moved with the times. WFH is the new normal for a large proportion of working age people AND surprise, surprise they WFH during the daytime. I guess HMRC might eventually get around to understanding how the new world order operates ! Although I wouldnt expect to much to soon.

I am actually a little confused now. Occasionally I work from home - for instance, if I need to finish important job-related paperwork I prefer to stay at home till it is done because there are less distractions than at workplace. Do I need to tell my landlord?

If your landlord uses Rent A Room Scheme for your rent then you can only work from home in the evenings and weekends.

If your landlord doesn't use Rent A Room Scheme, and instead pays tax on your whole rent (and claims expenses against it) then you can work during the weekdays.

That seems to be the situation.

It isn't the situation at all.

A lodger working at home occasionally during daytime hours would be viewed by HMRC in the same way as a lodger working at home on evenings and/or weekends.

I would add that lodger has no need or responsibility to become involved in the landlord's tax affairs.

Your post didn't mention the Rent A Room Scheme. That's the key part. Under Rent A Room is the requirement to limit work to evenings and weekends. We've covered this quite a lot on this thread. And the wording of the guidance has been provided.

I'm fully aware of the guidance, I believe I provided the link to it earlier in  the thread.

There is no hard and fast rule in the legislation which determines which days of the week or specific times of the day a genuine lodger renting residential accommodation in a landlord's home is working from home for the rent a room method to apply or not.

Tell that to the person on this thread who lost their Rent A Room Scheme access because of lodger daytime working.

Assuming you are correct - how the landlord is supposed to know what kind of stuff the lodger is doing on their laptop?

I'm just quoting what someone said on page 5 of this thread.  

Emily_Joy

1404 said:

Emily_Joy said:

1404 said:

mybestattempt said:

1404 said:

mybestattempt said:

1404 said:

Emily_Joy said:

subjecttocontract said:

It seems that HMRC haven't moved with the times. WFH is the new normal for a large proportion of working age people AND surprise, surprise they WFH during the daytime. I guess HMRC might eventually get around to understanding how the new world order operates ! Although I wouldnt expect to much to soon.

I am actually a little confused now. Occasionally I work from home - for instance, if I need to finish important job-related paperwork I prefer to stay at home till it is done because there are less distractions than at workplace. Do I need to tell my landlord?

If your landlord uses Rent A Room Scheme for your rent then you can only work from home in the evenings and weekends.

If your landlord doesn't use Rent A Room Scheme, and instead pays tax on your whole rent (and claims expenses against it) then you can work during the weekdays.

That seems to be the situation.

It isn't the situation at all.

A lodger working at home occasionally during daytime hours would be viewed by HMRC in the same way as a lodger working at home on evenings and/or weekends.

I would add that lodger has no need or responsibility to become involved in the landlord's tax affairs.

Your post didn't mention the Rent A Room Scheme. That's the key part. Under Rent A Room is the requirement to limit work to evenings and weekends. We've covered this quite a lot on this thread. And the wording of the guidance has been provided.

I'm fully aware of the guidance, I believe I provided the link to it earlier in  the thread.

There is no hard and fast rule in the legislation which determines which days of the week or specific times of the day a genuine lodger renting residential accommodation in a landlord's home is working from home for the rent a room method to apply or not.

Tell that to the person on this thread who lost their Rent A Room Scheme access because of lodger daytime working.

Assuming you are correct - how the landlord is supposed to know what kind of stuff the lodger is doing on their laptop?

I'm just quoting what someone said on page 5 of this thread.  

I don't have too much confidence in someone who appear to have registered on the forum in order to comment 3 times on one thread.

mybestattempt

1404 said:

mybestattempt said:

1404 said:

mybestattempt said:

1404 said:

Emily_Joy said:

subjecttocontract said:

It seems that HMRC haven't moved with the times. WFH is the new normal for a large proportion of working age people AND surprise, surprise they WFH during the daytime. I guess HMRC might eventually get around to understanding how the new world order operates ! Although I wouldnt expect to much to soon.

I am actually a little confused now. Occasionally I work from home - for instance, if I need to finish important job-related paperwork I prefer to stay at home till it is done because there are less distractions than at workplace. Do I need to tell my landlord?

If your landlord uses Rent A Room Scheme for your rent then you can only work from home in the evenings and weekends.

If your landlord doesn't use Rent A Room Scheme, and instead pays tax on your whole rent (and claims expenses against it) then you can work during the weekdays.

That seems to be the situation.

It isn't the situation at all.

A lodger working at home occasionally during daytime hours would be viewed by HMRC in the same way as a lodger working at home on evenings and/or weekends.

I would add that lodger has no need or responsibility to become involved in the landlord's tax affairs.

Your post didn't mention the Rent A Room Scheme. That's the key part. Under Rent A Room is the requirement to limit work to evenings and weekends. We've covered this quite a lot on this thread. And the wording of the guidance has been provided.

I'm fully aware of the guidance, I believe I provided the link to it earlier in  the thread.

There is no hard and fast rule in the legislation which determines which days of the week or specific times of the day a genuine lodger renting residential accommodation in a landlord's home is working from home for the rent a room method to apply or not.

Tell that to the person on this thread who lostir Rent A Room Scheme access because of lodger daytime working.

If HMRC made a formal decision to deny the rent a room relief then that person could have made an appeal and if HMRC had still refused to allow the relief that person could have taken the appeal to tribunal.

Perhaps that person may want to claim the relief again in his latest tax return and if it is denied follow the appeal process through to a tribunal decision.

1404

mybestattempt said:

1404 said:

mybestattempt said:

1404 said:

mybestattempt said:

1404 said:

Emily_Joy said:

subjecttocontract said:

It seems that HMRC haven't moved with the times. WFH is the new normal for a large proportion of working age people AND surprise, surprise they WFH during the daytime. I guess HMRC might eventually get around to understanding how the new world order operates ! Although I wouldnt expect to much to soon.

I am actually a little confused now. Occasionally I work from home - for instance, if I need to finish important job-related paperwork I prefer to stay at home till it is done because there are less distractions than at workplace. Do I need to tell my landlord?

If your landlord uses Rent A Room Scheme for your rent then you can only work from home in the evenings and weekends.

If your landlord doesn't use Rent A Room Scheme, and instead pays tax on your whole rent (and claims expenses against it) then you can work during the weekdays.

That seems to be the situation.

It isn't the situation at all.

A lodger working at home occasionally during daytime hours would be viewed by HMRC in the same way as a lodger working at home on evenings and/or weekends.

I would add that lodger has no need or responsibility to become involved in the landlord's tax affairs.

Your post didn't mention the Rent A Room Scheme. That's the key part. Under Rent A Room is the requirement to limit work to evenings and weekends. We've covered this quite a lot on this thread. And the wording of the guidance has been provided.

I'm fully aware of the guidance, I believe I provided the link to it earlier in  the thread.

There is no hard and fast rule in the legislation which determines which days of the week or specific times of the day a genuine lodger renting residential accommodation in a landlord's home is working from home for the rent a room method to apply or not.

Tell that to the person on this thread who lostir Rent A Room Scheme access because of lodger daytime working.

If HMRC made a formal decision to deny the rent a room relief then that person could have made an appeal and if HMRC had still refused to allow the relief that person could have taken the appeal to tribunal.

Perhaps that person may want to claim the relief again in his latest tax return and if it is denied follow the appeal process through to a tribunal decision.

Yes, that's what's probably called for.  But hasn't someone on here (unless I'm mistaken) already said that's probably what HMRC want anyway as they shape their policies through case law.  It's no skin off their nose if someone takes them to court.  They are a machine without feelings or financial consequence.  It's the poor individual who tries to take them on in court who pays the emotional and financial price for the process.  Getting an alternative lodger would be the easier route.  I'd also be interested how they knew.

FreeBear

pieroabcd said:

1404 said:

I've actually decided in the last couple of days that when one of my two lodgers leave I won't be replacing them. Will have one lodger and earn less than the £7500 a year. I've grown weary of the worry about compliance and the requirement to complete a self assessment tax return each year. I will also be able to build up some PRR months just in case I need them when it comes time to sell. 

I think that you will still need to file the self assessment each year as long as you have a lodger.

May need to file a self assessment depending on earnings. Just because one earns up to £7500 under the Rent a Room scheme does not mean a self assessment has to be filed. Ran through all the questions here, and even with <£7500 from a lodger, I don't have to file any paperwork.