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Paying board to parents

AJS321
AJS321 Posts: 63 Forumite
in House buying, renting & selling
Hi.

I’m 27 and still live with my parents (saving for a deposit at the moment) and pay them £100 per month in board and have been doing so since I first started work. I pay them very infirmally through a bank transfer every month and have never questioned what they then go on to do with that money.

Am I right in thinking that it’s my parents responsibility to declare this to HMRC as income for tax purposes? If it ever turns out to be the case that they’re not doing this, could I be held criminally responsible for tax evasion?
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Comments

  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    AJS321 wrote: »
    Hi.

    I’m 27 and still live with my parents (saving for a deposit at the moment) and pay them £100 per month in board and have been doing so since I first started work. I pay them very infirmally through a bank transfer every month and have never questioned what they then go on to do with that money.

    Am I right in thinking that it’s my parents responsibility to declare this to HMRC as income for tax purposes? If it ever turns out to be the case that they’re not doing this, could I be held criminally responsible for tax evasion?

    Tee hee.

    You are not responsible for someone else's tax liability not that your parents need to pay tax on your £100 a month contribution to the household because it doesn't take them anywhere near the Rent a Room limit.
  • lisyloo
    lisyloo Posts: 29,611 Forumite
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    The will not be making a profit on £100 a month (assuming this includes food) so they won't be due to pay any tax.


    If they are claiming means tested benefits then they probably need to declare it, but if they are working or retired then no need.


    It's not income it's your share of the bills.


    Have you thought of paying them more? If this includes food it's quite low to cover food, electric, gas, water etc.
  • Mojisola
    Mojisola Posts: 35,557 Forumite
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    AJS321 wrote: »
    I’m 27 and still live with my parents (saving for a deposit at the moment) and pay them £100 per month in board

    Am I right in thinking that it’s my parents responsibility to declare this to HMRC as income for tax purposes?

    You are sharing the household costs; you are not a tenant or a lodger.

    Your parents don't have to declare your contribution to the bills to anyone.
  • mije1983
    mije1983 Posts: 3,665 Forumite
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    lisyloo wrote: »
    Have you thought of paying them more? If this includes food it's quite low to cover food, electric, gas, water etc.


    It could be that the parents have just asked for a token amount to allow the OP to save up quicker for a deposit.
  • DoaM
    DoaM Posts: 11,863 Forumite
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    When I first started work I paid 1/3 of my net pay to my parents as board. It's a good way to learn about financial planning and the real costs of living. :)

    £10 board
    £10 savings
    £10 spending

    Yes, my first pay packet was £30 per week. :)
  • lisyloo
    lisyloo Posts: 29,611 Forumite
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    mije1983 wrote: »
    It could be that the parents have just asked for a token amount to allow the OP to save up quicker for a deposit.


    It could be.
    It's just a question as the OP may have no idea of what it costs to run a home and may have no idea that this is very low (if it does include food).


    If true it's generous but doesn't teach the OP about costs of living.
  • Larac
    Larac Posts: 945 Forumite
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    mije1983 wrote: »
    It could be that the parents have just asked for a token amount to allow the OP to save up quicker for a deposit.

    That is the approach I have taken with my 'boomerangs'. They learnt the cost of living whilst away at Uni. One of my sons mates managed to get his deposit together by living at the family home for 4 years.
  • mije1983
    mije1983 Posts: 3,665 Forumite
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    lisyloo wrote: »
    If true it's generous but doesn't teach the OP about costs of living.

    You don't have to physically experience something to know about it though. There are other ways of learning.

    Anyway, it's speculation unless the OP clarifies either way.
  • lookstraightahead
    lookstraightahead Posts: 5,540 Forumite
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    Larac wrote: »
    That is the approach I have taken with my 'boomerangs'. They learnt the cost of living whilst away at Uni. One of my sons mates managed to get his deposit together by living at the family home for 4 years.

    I'm not sure uni teaches you the cost of living, although it is true that some students work to pay for it. Generally though it's a loan from the government and a surprise when you spend more than you have in maintenance.
  • lisyloo
    lisyloo Posts: 29,611 Forumite
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    mije1983 wrote: »
    You don't have to physically experience something to know about it though. There are other ways of learning.

    Anyway, it's speculation unless the OP clarifies either way.


    Agree with you on both counts.


    I was merely asking a question as it stood out as low to me.
    I voluntarily paid my parents more when I boarded with them, but I'm a little older and didn't need my parents to help me buy a house and times have indeed changed.
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