Will taking in a foreign student affect my tax credits?

Drugsadvisor

I am a single parent and I have done a deal with my elder son to share with his younger brother over the summer holidays so I can rent out his en-suite loft room to a foriegn student for six weeks. Will this affect my tax credits and is the threshold still £65 per week before it is taxable?

Any qualified advice greatfully recieved, thanks

Conor_3

It is classed as income. You should be exempt from paying tax on it under the "Rent a Room" scheme.

Drugsadvisor

Thanks. So I need to tell the tax credit people then? :rolleyes:

[Deleted User]

Tax Credits dont need to know as it is under the threshold for the rent a room scheme but you may need to declare it if you receive any other benefits.

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

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/MoneyTax...ome/DG_4017804