rent a room scheme

hookey

Hi There,
Im a single mum and just started renting my room out for 600 month under rent a room scheme. I understand that you do not have to declare the first 4250 under this scheme but can deduct food laundry etc. I am unsure how much to allocate for this as all in and can i also deduct the loss of 25% for council tax.
Can you advise what is a reasonable amount to deduct for these out of my profit???

Oldernotwiser

I doubt very much that you can claim the loss of the CT discount but as far as the other amounts go, are you actually renting out a room (as in a flat share) or are you taking in a lodger (providing meals and laundry services)? I'm pretty sure it makes a difference.

[Deleted User]

Have a look at this link for more helpful info regarding the rent a room scheme.

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

Sorry the link is now fixed.

Here are another couple of links from HMRC and the Direct.gov websites.

http://www.hmrc.gov.uk/helpsheets/hs223.pdf

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

mitchaa

£600pm to rent a room?? Do you live in W. London??

Do you own the house, rent or in receipt of housing benefit?

Badger_Lady

Are you sure you can deduct those expenses? Because if you charge for them you have to add them to your total allowance: http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804

My understanding is that you can only off-set expenses outside of the RAR scheme, i.e. for the purposes of filling out a tax return. That's certainly the only time that you can off-set mortgage interest, insurance etc.

[Deleted User]

I have added another couple of useful links regarding this scheme and also fixed the one from earlier.

See post # 3

real1314

hookey wrote: »

Hi There,
Im a single mum and just started renting my room out for 600 month under rent a room scheme. I understand that you do not have to declare the first 4250 under this scheme but can deduct food laundry etc. I am unsure how much to allocate for this as all in and can i also deduct the loss of 25% for council tax.
Can you advise what is a reasonable amount to deduct for these out of my profit???

As you've posted this on "Benefits and Tax Credits" rather than on Tax Saving or Property, I'll just point out that you MUST declare any rent-a-room money to the Jobcentre or DWP and to Housing Benefits if you are on means tested benefits.

Rent-a-room stuff is only in relation to tax returns.