lodger and the taxman

paulbuck

Hi guys!, I'm thinking of renting a room for about 200 quid do i need to contact the council or the tax man? i am fully employed and the home owner. thanks..

Andy_Hamilton

You do not need to declare it unless you have a self assessment.
You will however have to let you mortgage company (if you have a mortgage) know. Also your insurance would need to change and this is normally more expensive.

Your allowed just over £4K tax free from a lodger unter the "rent a room" scheme.

moneysavinmonkey

the government rent a room scheme lets you accept annual rent from of a lodger of up to £4200 before having to pay tax on the income. More info here- worth following all the links to learn about landlord rights + obligations too.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804

paulbuck

cheers guys, thanks given

PasturesNew

moneysavinmonkey wrote: »

... worth following all the links to learn about landlord rights + obligations too.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804

There aren't really if it's a lodger. If they miff you off you can pretty much put them out on the street immediately. Because it's your home. They aren't a tenant.

clutton_2

"" If they miff you off you can pretty much put them out on the street immediately.""

oh how i wish that had been true for partners some years back !!!

PasturesNew

clutton wrote: »

"" If they miff you off you can pretty much put them out on the street immediately.""

oh how i wish that had been true for partners some years back !!!

If they miff you off, you build a new patio overnight.

Andy_Hamilton

You have to give reaonable notice ie not opening a door and throwing stuff on street, because it is your home you don't have to give an assured tenantcy.

I have a 2 week notice period which suits me fine (either can give 2 weeks notice)

Also consider if you have to pay full council tax.