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    • AJS321
    • By AJS321 12th Jul 18, 12:56 PM
    • 39Posts
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    AJS321
    Paying board to parents
    • #1
    • 12th Jul 18, 12:56 PM
    Paying board to parents 12th Jul 18 at 12:56 PM
    Hi.

    Iím 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 itís my parents responsibility to declare this to HMRC as income for tax purposes? If it ever turns out to be the case that theyíre not doing this, could I be held criminally responsible for tax evasion?
Page 1
    • Pixie5740
    • By Pixie5740 12th Jul 18, 1:01 PM
    • 12,421 Posts
    • 17,639 Thanks
    Pixie5740
    • #2
    • 12th Jul 18, 1:01 PM
    • #2
    • 12th Jul 18, 1:01 PM
    Hi.

    Iím 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 itís my parents responsibility to declare this to HMRC as income for tax purposes? If it ever turns out to be the case that theyíre not doing this, could I be held criminally responsible for tax evasion?
    Originally posted by AJS321
    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
    • By lisyloo 12th Jul 18, 1:02 PM
    • 22,019 Posts
    • 10,699 Thanks
    lisyloo
    • #3
    • 12th Jul 18, 1:02 PM
    • #3
    • 12th Jul 18, 1:02 PM
    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
    • By Mojisola 12th Jul 18, 1:03 PM
    • 29,478 Posts
    • 75,240 Thanks
    Mojisola
    • #4
    • 12th Jul 18, 1:03 PM
    • #4
    • 12th Jul 18, 1:03 PM
    Iím 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 itís my parents responsibility to declare this to HMRC as income for tax purposes?
    Originally posted by AJS321
    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
    • By mije1983 12th Jul 18, 1:46 PM
    • 3,342 Posts
    • 19,264 Thanks
    mije1983
    • #5
    • 12th Jul 18, 1:46 PM
    • #5
    • 12th Jul 18, 1:46 PM
    Have you thought of paying them more? If this includes food it's quite low to cover food, electric, gas, water etc.
    Originally posted by lisyloo

    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
    • By DoaM 12th Jul 18, 1:50 PM
    • 4,494 Posts
    • 4,522 Thanks
    DoaM
    • #6
    • 12th Jul 18, 1:50 PM
    • #6
    • 12th Jul 18, 1:50 PM
    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.
    Diary of a madman
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    • lisyloo
    • By lisyloo 12th Jul 18, 1:54 PM
    • 22,019 Posts
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    lisyloo
    • #7
    • 12th Jul 18, 1:54 PM
    • #7
    • 12th Jul 18, 1:54 PM
    It could be that the parents have just asked for a token amount to allow the OP to save up quicker for a deposit.
    Originally posted by mije1983

    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
    • By Larac 12th Jul 18, 2:19 PM
    • 834 Posts
    • 519 Thanks
    Larac
    • #8
    • 12th Jul 18, 2:19 PM
    • #8
    • 12th Jul 18, 2:19 PM
    It could be that the parents have just asked for a token amount to allow the OP to save up quicker for a deposit.
    Originally posted by mije1983
    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
    • By mije1983 12th Jul 18, 3:22 PM
    • 3,342 Posts
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    mije1983
    • #9
    • 12th Jul 18, 3:22 PM
    • #9
    • 12th Jul 18, 3:22 PM
    If true it's generous but doesn't teach the OP about costs of living.
    Originally posted by lisyloo
    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
    • By lookstraightahead 12th Jul 18, 3:48 PM
    • 283 Posts
    • 290 Thanks
    lookstraightahead
    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.
    Originally posted by Larac
    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
    • By lisyloo 12th Jul 18, 4:07 PM
    • 22,019 Posts
    • 10,699 Thanks
    lisyloo
    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.
    Originally posted by mije1983

    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.
    • lisyloo
    • By lisyloo 12th Jul 18, 4:11 PM
    • 22,019 Posts
    • 10,699 Thanks
    lisyloo
    I'm not sure uni teaches you the cost of living.
    Originally posted by lookstraightahead

    I think it does although again depends on circumstances.
    If you are renting privately you'll have to pay food, rent, travel and bills etc.


    If your in university accomodation then you might be sheltered from some of those costs, but in private rental you'll be exposed to all the normal costs of living.


    Of course there are other ways to learn, but most young people will have very little interest in household bills until it affects them personally.
    • TamsinC
    • By TamsinC 12th Jul 18, 8:14 PM
    • 359 Posts
    • 357 Thanks
    TamsinC
    Hi.

    I!!!8217;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!!!8217;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!!!8217;re not doing this, could I be held criminally responsible for tax evasion?
    Originally posted by AJS321
    they pay the bills with that money - electric, gas, internet etc. £100 a month is NOTHING!

    Like others here - I paid my parents 1/3 of my wages when I stayed at home AND saved for a deposit. I wouldn't have considered thinking what they did with it.

    Mind you I wouldn't have lived with my parents at the age of 27 - worst nightmare situation - I was married and pregnant with my eldest at that point - completely independent.

    As others have said they can earn £7.5K for a rent a room scheme with HMRC - you give them £1200 a year -- Think they are fine!
    Last edited by TamsinC; 12-07-2018 at 8:17 PM.
    • t0rt0ise
    • By t0rt0ise 12th Jul 18, 11:39 PM
    • 3,037 Posts
    • 1,916 Thanks
    t0rt0ise
    Family members don't count as lodgers. Try to get Housing Benefit and you will soon find that out!
    • tori.k
    • By tori.k 13th Jul 18, 8:10 AM
    • 3,218 Posts
    • 8,188 Thanks
    tori.k
    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.
    Originally posted by lisyloo
    We charge our eldest not much more as he's saving a deposit it will actually benefit us both more knowing he will have secure housing and it will put an end to the cost of him yo-yoing between home and rented properties, I think most young people saving a deposit are aware of the cost of living its why they are saving rather than jumping ship into rental for the supposed freedom
    Debit to Credit (stage 1) 3652.34 completed 15/10/16
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    Save 12k in 2018 #76 3000/6000
    • FTBlalala
    • By FTBlalala 13th Jul 18, 9:58 AM
    • 13 Posts
    • 23 Thanks
    FTBlalala
    I've recently bought a house at 24 by living with parents for 2 years, I was paying £80 a WEEK voluntarily as this was about 20% of my take home monthly pay. This was excl food too and I still managed to save £17k in 2 years.

    I don't begrudge it at all! It has massively helped me get to where I am today and being financially independent (with no debt excl mortgage).

    My brothers, sister and I have paid rent and bought 90% of our own food since we started full time work at 18. (Part-time work and college 16-18 and to be fair my parents wouldn't accept rent while any of us were full time education)

    Best thing they did for us IMO
    • lisyloo
    • By lisyloo 13th Jul 18, 10:16 AM
    • 22,019 Posts
    • 10,699 Thanks
    lisyloo
    We charge our eldest not much more as he's saving a deposit it will actually benefit us both more knowing he will have secure housing and it will put an end to the cost of him yo-yoing between home and rented properties, I think most young people saving a deposit are aware of the cost of living its why they are saving rather than jumping ship into rental for the supposed freedom
    Originally posted by tori.k

    ok.
    I just would not expect my parents to subsidise me once I was working. If that means it takes longer so be it.
    I would not want to be reliant on mummy and daddy at age 27.
    If you are a woman you start being regarded as "geriatric" in maternal terms after 35. That's not my personal judgment that an official medical term.
    How long exactly do people these days expect to hang off the apron strings?
    • todayisagreatday
    • By todayisagreatday 13th Jul 18, 11:23 AM
    • 121 Posts
    • 75 Thanks
    todayisagreatday
    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.
    Originally posted by DoaM
    37 year old here, same applied to me £60 a week and £20 board £20 savings and £20 spending.....
    • Smodlet
    • By Smodlet 13th Jul 18, 4:18 PM
    • 3,459 Posts
    • 6,692 Thanks
    Smodlet
    "£100 per month." A hundred pounds per month??? I was paying my mother £80 per month in 1984!!! I offered £90, she asked for £70 so we settled on £80 and I still bought food, cleaning stuff, toiletries, treats...
    What is this life if, sweet wordsmith, we have no time to take the pith?
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    • diggingdude
    • By diggingdude 13th Jul 18, 4:47 PM
    • 324 Posts
    • 376 Thanks
    diggingdude
    Surely it doesn't matter how much one is paying so long as everyone is happy?

    I'm back with my parents, initially whilst I was buying somewhere following a job move and its been just over a year now thanks to having an accident. I pay them not much below the rental rate for a 2 bedroom flat around here, no food included and my dad probably costs me more in beer than the rent This works for all of us. They don't like taking cash so I let them choose things that I buy for the house instead each month as they are 2 years into a 5 year redevelopment project on their home (can't say i see any improvement). Equally I don't feel hard done by as I totally appreciate the support. This is how families tend to work where I am from.
    House Deposit - Target £20000 April 2019
    Current Savings - £10225 13121.22 £14621.22 £16021
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