Taking in a lodger any advice please

southerncomfort_2

Im thinking of taking in a lodger, It will only be on a S**t, shower and shave basis for a couple of months while he waits for his first wages off a new job and then he can get his own place sorted out.

What would happen if I informed the benefits office. I get income support for me and my children and council tax benefit.

I own my own home well its mortgaged and I get the mortgage interest relief paid.

He has said he will give me £40 a week towards my bills and I dont mind that as he wont be eating here and will hardly be here.

What would I lose when I inform the benefits office?

Thanks

seven-day-weekend

Although taking in a lodger can be a very good way to earn a bit of extra money, and our family have done it many times, it can be very awkward if you are on benefits.

I think the rent money would be classed as income and treated accordingly.

People will be along soon who kow a bit more.

bryanb

Why not have a "House guest" for a couple of months?

[Deleted User]

Have a look here regarding the Rent A Room Scheme
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804

[Deleted User]

I am not sure exactly how that would affect the benefits you receive, it doesnt affect Tax Credits but this wont mean anything to yourself as you have not stated you claim TC.
Best thing is probably to give them a ring and find out what effect it would have on your benefits.

I wouldnt really take the advice of having a "house guest" as this seems to be hinting at fraud (undeclared income).

dmg24

You would need to declare the income to the DWP, and your entitlement would be reassessed (a quick check on www.entitledto.com will give an idea if it will make a difference).

It is not possible to have a 'house guest' for a few months ... unless you would like to be a 'house guest' of Her Majesty's Prisons (you are unlikely to be sent to prison for it, but you get my point )! x

southerncomfort_2

Dont want to be doing anything dodgy. Was just wondering if I would lose my council tax benefit and interest mortgage relief. Dont get tax credits.

real1314

I can give some approximate advice from HB regs, which are broadly the same as Income Support regs (nb figures are out of date - 2003/04 but will show comparison between 2 scenarios):

If you provide "some" meals they would be treated as a boarder, if you don't provide any meals they will be a sub-tenant.

For HB (and probably IS) income from a sub-tenant is treated as follows:
First £4.00 is disregarded, another £9.65 is disregarded if heating is included, after that anything else is taken fully into account, so in your case you'd lose about £25 off your IS

For Boarders, income is treated this way:
The first £20 is disregarded, then half of the rest is disregarded, so in your case that would mean you'd lose £10 off your IS.

To be classed as a boarder, you would have to provide "some" cooked or prepared meals. So, providing breakfast cereals and milk would not count, but providing toast or a cooked breakfast each day might. Not even sure that it has to be each day or how closely it is looked at regarding provision of meals though?

real1314

I can give some approximate advice from HB regs, which are broadly the same as Income Support regs (nb figures are out of date - 2003/04 but will show comparison between 2 scenarios):

If you provide "some" meals they would be treated as a boarder, if you don't provide any meals they will be a sub-tenant.

For HB (and probably IS) income from a sub-tenant is treated as follows:
First £4.00 is disregarded, another £9.65 is disregarded if heating is included, after that anything else is taken fully into account, so in your case you'd lose about £25 off your IS

For Boarders, income is treated this way:
The first £20 is disregarded, then half of the rest is disregarded, so in your case that would mean you'd lose £10 off your IS.

To be classed as a boarder, you would have to provide "some" cooked or prepared meals. So, providing breakfast cereals and milk would not count, but providing toast or a cooked breakfast each day might. Not even sure that it has to be each day or how closely it is looked at regarding provision of meals though?

raq

I had exactly the same question a couple of weeks back and basically YOU have to declare to the benefits side. The person I was asking on behalf of didn't confirm which I did warn her ( she can just see the £ signs ) and be prepared if anyone splits on you.