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  • FIRST POST
    • Ryanbell94
    • By Ryanbell94 18th Aug 19, 10:23 PM
    • 2Posts
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    Ryanbell94
    Renting my spare bedrooms out to my friends
    • #1
    • 18th Aug 19, 10:23 PM
    Renting my spare bedrooms out to my friends 18th Aug 19 at 10:23 PM
    Hi there Iím currently in the process of buying a house and will have 2 bedrooms spare and was wondering if I asked for my friends to move in with me and we split the mortgage, bills, council tax, boardband between the 3 of us, would I have to pay tax on the money they give me?
    Cheers
Page 1
    • Spidernick
    • By Spidernick 18th Aug 19, 10:34 PM
    • 3,608 Posts
    • 7,926 Thanks
    Spidernick
    • #2
    • 18th Aug 19, 10:34 PM
    • #2
    • 18th Aug 19, 10:34 PM
    Probably not. Google ‘rent-a-room relief’.
    'I want to die peacefully in my sleep, like my father. Not screaming and terrified like his passengers.' (Bob Monkhouse).

    Sky? Believe in better.

    Note: win, draw or lose (not 'loose' - opposite of tight!)
    • Sammypooler
    • By Sammypooler 18th Aug 19, 10:56 PM
    • 70 Posts
    • 26 Thanks
    Sammypooler
    • #3
    • 18th Aug 19, 10:56 PM
    • #3
    • 18th Aug 19, 10:56 PM
    He should 100% would.

    You aren’t splitting the mortgage, it’s your mortgage and you are the owner.

    You can earn £7.5k tax free and after that it’s taxed along with your income.
    • zagubov
    • By zagubov 18th Aug 19, 11:09 PM
    • 16,438 Posts
    • 134,181 Thanks
    zagubov
    • #4
    • 18th Aug 19, 11:09 PM
    • #4
    • 18th Aug 19, 11:09 PM
    Can I just say, that, paradoxically, friends as lodgers need the firmest boundaries.

    Lay down sensible rules about visitors and guests, cleaning and washing up, noise and access to shared facilities, payment deadlines and notice needed to quit before they hand over money or move in.

    And don't just think "they're mates so no need for rules".

    Do read G_M's sticky.
    There is no honour to be had in not knowing a thing that can be known - Danny Baker
    • FreeBear
    • By FreeBear 18th Aug 19, 11:16 PM
    • 2,910 Posts
    • 3,882 Thanks
    FreeBear
    • #5
    • 18th Aug 19, 11:16 PM
    • #5
    • 18th Aug 19, 11:16 PM
    Hi there Iím currently in the process of buying a house and will have 2 bedrooms spare and was wondering if I asked for my friends to move in with me and we split the mortgage, bills, council tax, boardband between the 3 of us, would I have to pay tax on the money they give me?
    Originally posted by Ryanbell94
    Work out how much the bills are likely to be and structure the rent to cover these and the mortgage. Do not "share the mortgage repayments" as this could grant your friends a beneficial interest in the property. Make sure the rooms are furnished, clear house rules are set from the beginning, and provide a written agreement - Make sure that this is a licence to occupy and not a tenancy agreement.

    As long as the annual income is below £7,500, you do not pay tax. However, you may be liable to some capital gains tax if/when you sell.
    Her courage will change the world.

    Treasure the moments that you have. Savour them for as long as you can for they will never come back again.
    • zagubov
    • By zagubov 18th Aug 19, 11:33 PM
    • 16,438 Posts
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    zagubov
    • #6
    • 18th Aug 19, 11:33 PM
    • #6
    • 18th Aug 19, 11:33 PM
    And no locks allowed on their doors.
    You can obviously put a lock on your own bedroom door, and probably should if you're away a lot.
    You need to arrange to enter their rooms to empty the bins.
    There is no honour to be had in not knowing a thing that can be known - Danny Baker
    • comedyseeker123
    • By comedyseeker123 19th Aug 19, 12:11 AM
    • 159 Posts
    • 84 Thanks
    comedyseeker123
    • #7
    • 19th Aug 19, 12:11 AM
    • #7
    • 19th Aug 19, 12:11 AM
    That lock thing is annoying.
    • Smodlet
    • By Smodlet 19th Aug 19, 6:42 AM
    • 4,873 Posts
    • 8,274 Thanks
    Smodlet
    • #8
    • 19th Aug 19, 6:42 AM
    • #8
    • 19th Aug 19, 6:42 AM
    That lock thing is annoying.
    Originally posted by comedyseeker123
    Surely, less annoying than granting a lodger "exclusive occupation" of a room and, therefore, the same rights as a tenant, don't you think?
    What is this life if, sweet wordsmith, we have no time to take the pith?
    Every stew starts with the first onion.
    I took it upon myself to investigate a trifle; it had custard, jelly, soggy sponge things...
    • Ryanbell94
    • By Ryanbell94 19th Aug 19, 8:46 AM
    • 2 Posts
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    Ryanbell94
    • #9
    • 19th Aug 19, 8:46 AM
    • #9
    • 19th Aug 19, 8:46 AM
    Is this 7.5k for each room or both rooms?
    • muhandis
    • By muhandis 19th Aug 19, 8:49 AM
    • 980 Posts
    • 727 Thanks
    muhandis
    Total, for both rooms together.

    The tax exemption is automatic if you earn less than £7500. This means you don’t need to do anything.

    You must complete a tax return if you earn more than £7,500 for the tax year. On your self assessment tax return, you can then opt into the scheme and claim your tax-free allowance.

    https://www.gov.uk/rent-room-in-your-home/the-rent-a-room-scheme

    Is this 7.5k for each room or both rooms?
    Originally posted by Ryanbell94
    Last edited by muhandis; 19-08-2019 at 8:51 AM.
    • sevenhills
    • By sevenhills 19th Aug 19, 8:50 AM
    • 2,527 Posts
    • 927 Thanks
    sevenhills
    Is this 7.5k for each room or both rooms?
    Originally posted by Ryanbell94

    The Rent a Room Scheme lets you earn up to a threshold of £7,500 per year tax-free from letting out furnished accommodation in your home. This is halved if you share the income with your partner or someone else.


    https://www.gov.uk/rent-room-in-your-home/the-rent-a-room-scheme

    • Comms69
    • By Comms69 19th Aug 19, 8:55 AM
    • 9,785 Posts
    • 11,697 Thanks
    Comms69
    Is this 7.5k for each room or both rooms?
    Originally posted by Ryanbell94


    It's £7.5k in total for EVERYTHING they pay you
    • comedyseeker123
    • By comedyseeker123 19th Aug 19, 8:59 AM
    • 159 Posts
    • 84 Thanks
    comedyseeker123
    Surely, less annoying than granting a lodger "exclusive occupation" of a room and, therefore, the same rights as a tenant, don't you think?
    Originally posted by Smodlet

    Does the person living with a person who owns the house have exclusive occupation because they have a key to the front door? Do they have exclusive occupation because they have a lock on the bathroom? Do they not have the right to keep their belongings safe during the day from other people? Does that person not have the right to lock their door and keep them safe when sleeping at night (an example would be a woman sharing with men she doesn't know and doesn't control who moves in)? Obviously you won't agree.


    What is the point of a person who lives/owns the house having a lodger agreement?
    • Comms69
    • By Comms69 19th Aug 19, 9:02 AM
    • 9,785 Posts
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    Comms69
    Does the person living with a person who owns the house have exclusive occupation because they have a key to the front door? - no? Do they have exclusive occupation because they have a lock on the bathroom? - no? Do they not have the right to keep their belongings safe during the day from other people? -no Does that person not have the right to lock their door and keep them safe when sleeping at night (an example would be a woman sharing with men she doesn't know and doesn't control who moves in)? - why would a woman sharing with men be any more at risk than anyone else? Obviously you won't agree. - Clearly not, you haven't actually come up with a sensible suggestion


    What is the point of a person who lives/owns the house having a lodger agreement?
    Originally posted by comedyseeker123


    Usually in order to pursue the matter through the courts if necessary...
    • muhandis
    • By muhandis 19th Aug 19, 9:08 AM
    • 980 Posts
    • 727 Thanks
    muhandis
    Quite right. Having a lock on the door to a lodger's room does not automatically make it a tenancy.

    If the door has a lock and the tenant is given a key, this will not be a tenancy if the landlord also has a key and regularly goes in from time to time, to do cleaning, empty the bins, etc.

    Indeed, the two times that I've lived as a lodger in London and the NW, I could always lock my door (though I'm sure the LL had a key as well).

    Does the person living with a person who owns the house have exclusive occupation because they have a key to the front door? Do they have exclusive occupation because they have a lock on the bathroom? Do they not have the right to keep their belongings safe during the day from other people? Does that person not have the right to lock their door and keep them safe when sleeping at night (an example would be a woman sharing with men she doesn't know and doesn't control who moves in)? Obviously you won't agree.


    What is the point of a person who lives/owns the house having a lodger agreement?
    Originally posted by comedyseeker123
    Last edited by muhandis; 19-08-2019 at 9:12 AM.
    • Smodlet
    • By Smodlet 19th Aug 19, 10:24 AM
    • 4,873 Posts
    • 8,274 Thanks
    Smodlet
    Quite right. Having a lock on the door to a lodger's room does not automatically make it a tenancy.

    If the door has a lock and the tenant is given a key, this will not be a tenancy if the landlord also has a key and regularly goes in from time to time, to do cleaning, empty the bins, etc.

    Indeed, the two times that I've lived as a lodger in London and the NW, I could always lock my door (though I'm sure the LL had a key as well).
    Originally posted by muhandis
    @comedyseeker123, how dare you assume you know my opinion on anything unless I have stated it? Of course, I think people should be able to lock their rooms to keep themselves and their belongings safe! I did not say I agreed with the law; I said that is what the law is. Given a potential LL began this thread, my reply was geared to a LL's point of view. Debating the morality of the law regarding lodgers' rights is a separate issue.

    Muhandis, thank you for the clarification. Yes, if the LL also has a key to the room, it cannot be classed as "exclusive" occupation for the simple reason someone besides the occupier has a key. I omitted to mention that because, imho, to a large extent it defeats the purpose of the lodger having one.

    The received wisdom is, if you allow a lodger a lock on their bedroom door, you risk their becoming a tenant with all the rights of one so, from a LL's point of view, it is preferable not to take that risk.

    By their very nature, front door keys and bolts on bathroom doors do not convey "exclusive" occupation because everyone in the property will have a front door key and use of the bathroom.
    What is this life if, sweet wordsmith, we have no time to take the pith?
    Every stew starts with the first onion.
    I took it upon myself to investigate a trifle; it had custard, jelly, soggy sponge things...
    • zagubov
    • By zagubov 19th Aug 19, 10:27 AM
    • 16,438 Posts
    • 134,181 Thanks
    zagubov
    Quite right. Having a lock on the door to a lodger's room does not automatically make it a tenancy.

    If the door has a lock and the tenant is given a key, this will not be a tenancy if the landlord also has a key and regularly goes in from time to time, to do cleaning, empty the bins, etc.

    Indeed, the two times that I've lived as a lodger in London and the NW, I could always lock my door (though I'm sure the LL had a key as well).
    Originally posted by muhandis
    That's a good point. Simply not fitting a lock in the door in the first place might be easier.

    A lodger would probably expect to have a bathroom-style bolt for ther door so they can have privacy when they're present.
    There is no honour to be had in not knowing a thing that can be known - Danny Baker
    • comedyseeker123
    • By comedyseeker123 19th Aug 19, 11:29 AM
    • 159 Posts
    • 84 Thanks
    comedyseeker123
    Usually in order to pursue the matter through the courts if necessary...
    Originally posted by Comms69

    I'm not understanding the difference - partly because I haven't researched it and also because as a renter I've rented out rooms (overseas) and rented rooms. The only difference is the landlord can enter the room without permission. Sounds more like a parent and child relationship rather than adults?
    • comedyseeker123
    • By comedyseeker123 19th Aug 19, 11:31 AM
    • 159 Posts
    • 84 Thanks
    comedyseeker123
    @comedyseeker123, how dare you assume you know my opinion on anything unless I have stated it? Of course, I think people should be able to lock their rooms to keep themselves and their belongings safe! I did not say I agreed with the law; I said that is what the law is. Given a potential LL began this thread, my reply was geared to a LL's point of view. Debating the morality of the law regarding lodgers' rights is a separate issue.

    Muhandis, thank you for the clarification. Yes, if the LL also has a key to the room, it cannot be classed as "exclusive" occupation for the simple reason someone besides the occupier has a key. I omitted to mention that because, imho, to a large extent it defeats the purpose of the lodger having one.

    The received wisdom is, if you allow a lodger a lock on their bedroom door, you risk their becoming a tenant with all the rights of one so, from a LL's point of view, it is preferable not to take that risk.

    By their very nature, front door keys and bolts on bathroom doors do not convey "exclusive" occupation because everyone in the property will have a front door key and use of the bathroom.
    Originally posted by Smodlet

    how double dare you lol. Dude calm down, I wasn't taking a dig at you.


    By their very nature, a landlord living or not living in the house can enter the room for whatever reason they wish. The person doesn't own that room.
    • Comms69
    • By Comms69 19th Aug 19, 12:12 PM
    • 9,785 Posts
    • 11,697 Thanks
    Comms69
    how double dare you lol. Dude calm down, I wasn't taking a dig at you.


    By their very nature, a landlord living or not living in the house can enter the room for whatever reason they wish. The person doesn't own that room.
    Originally posted by comedyseeker123


    A landlord not living in the property would have zero rights of access unless authorised by the tenant.
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