Rent a Room Scheme whilst on benefits?

sara_501

Hi all

basically bit of advice needed, am cash strapped and currently on income support, what I was wondering is, can I rent a room out whilst on benefits or will i be penalised financially for doing this?

any advice gratefully received

thanks

sara

stazi

Income from the RaRS is treated as tax free. However, as you are claiming IS, this income would be affect your IS claim.

[Deleted User]

Only the first £4250 (iirc) is tax free. This works out at around £81 p/week.

For Income Support purposes, the first £20 they pay you is ignored and half of any balance remaining is taken into account as your income.

For example, if the lodger pays £70 a week, £20 is ignored completely and your income is counted as half of the rest, i.e. £25 (Half of the remaining £50). You must inform the DWP straight away and they will deduct £25 from your IS

Have a look at this link for more helpful info.

gingerbread.org.uk/information-and-advice/documents/factsheet11.pdf

sara_501

so essentially if i get £70 pw I get to keep £45 a week?

[Deleted User]

Yes
Technically you would keep the full £70 but £25 would be deducted from your Income Support.

sara_501

subsoniccoyote wrote: »

Yes
Technically you would keep the full £70 but £25 would be deducted from your Income Support.

Thanks for the advice SSCoyote