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income from adult family members
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wobblebottom1203
Posts: 2 Newbie
my daughter ( 25 ) and her boyfriend (26)have come home to live with us in order to save for a deposit on a house as they were finding that renting in the private sector made it impossible to save.
We are living as a family unit sharing the house and are not charging a rent ( and they don't have exclusive possession of any part of the house ) but they are each giving us £200 per month towards the household costs ( they eat for england ! ) .
Does anyone know if i have to declare this as 'unearned' income to HMRC ?
I would really appreciate guidance on this .
We are living as a family unit sharing the house and are not charging a rent ( and they don't have exclusive possession of any part of the house ) but they are each giving us £200 per month towards the household costs ( they eat for england ! ) .
Does anyone know if i have to declare this as 'unearned' income to HMRC ?
I would really appreciate guidance on this .
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Comments
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I don't think so because in effect they are buying £400 worth of groceries per month, so you don't really have an 'income' of this amount; same as if they paid you nothing and bought their own groceries3
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Agree - this is like room mates each kicking for their share of the beer and pizza.I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe, Old Style Money Saving and Pensions boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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⭐️🏅😇1 -
If you want to be pedantic, get them to give you the £400 a month in Tesco gift cards!
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The rent a room scheme allows rent up to £7500pa without tax ... See....
https://www.gov.uk/rent-room-in-your-ihome/the-rent-a-room-scheme
- so you're fine. I'd increase it a bit.....
Just to avoid suspicion I'd suggest they pay by bank transfer.
And to avoid issues if behaviour or issues occurs get lodgers agreements signed - including notice for them and you for ending agreement.3 -
Do you really want to waste HMRC's time with this - they're already so busy that they're becoming difficult to contact by the people who do need to interact with them..
They're family members living with you. You share expenses. They are staying subject to your license which can be withdrawn at short notice.
Does the world desperately need more paperwork? I wasn't aware there was any kind of global shortage of this.There is no honour to be had in not knowing a thing that can be known - Danny Baker4 -
if it was your daughter only then there wouldn't be anything to do but as the boyfriend is living with her and paying rent then it will fall into rent a room scheme, for which you have the £7,500 pa allowance.0
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Exactly the same situation as us, but we charge more. Never gave it a thought. The government gets more than enough already.
"There is no such thing as a low-energy rich country." Dr Chris Martenson. Peak Prosperity0 -
i agree totally .. we are giving support and not seeking to make a profit . I didn't want to waste any HMRC time but equally didnt want to fall foul of the ruleszagubov said:Do you really want to waste HMRC's time with this - they're already so busy that they're becoming difficult to contact by the people who do need to interact with them..
They're family members living with you. You share expenses. They are staying subject to your license which can be withdrawn at short notice.
Does the world desperately need more paperwork? I wasn't aware there was any kind of global shortage of this.0
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