Renting out a room - tax implications
Discussion
(Inspired by a recent thread on very similar topic)
A friend currently living down south is thinking of returning up north since he doesn't seem to be getting anywhere on the job front. He is actually getting housing benefit at the moment since he rents.
Ponderings are going on if I could put him up for a bit on his return. I know that if I do so I won't get my council tax discount, but would I also have to declare any income for tax purposes and would I then get taxed on it? Being a peasant I do not fill in a self-assessment form currently.
Being a friend isn't really relevant, since I don't have any probs in taking money, as saving up for a sportscar is an expensive business!
On the negative side, I'm just wondering if tax / paperwork / hassle may make this more trouble than it is worth...
Thanks for any info.
A friend currently living down south is thinking of returning up north since he doesn't seem to be getting anywhere on the job front. He is actually getting housing benefit at the moment since he rents.
Ponderings are going on if I could put him up for a bit on his return. I know that if I do so I won't get my council tax discount, but would I also have to declare any income for tax purposes and would I then get taxed on it? Being a peasant I do not fill in a self-assessment form currently.
Being a friend isn't really relevant, since I don't have any probs in taking money, as saving up for a sportscar is an expensive business!
On the negative side, I'm just wondering if tax / paperwork / hassle may make this more trouble than it is worth...
Thanks for any info.
To clairify Darren's point - you do not have to declare Rental Income if it falls under the Rent a Room Scheme limits - and the income is in respect of a room rented out in your own principal private residence.
So, it is not just a matter have not having to pay tax, but also the fact that you do not have to complete the Rental Income Supplementary Pages of a Self Assessment tax return in respect of this income.
So, it is not just a matter have not having to pay tax, but also the fact that you do not have to complete the Rental Income Supplementary Pages of a Self Assessment tax return in respect of this income.
RichardD said:
Excellent - thanks chaps for clarification! 
At that rate of relief, I should maybe extend the house and go for renting two rooms instead of trying to fill the garage with a daft car!
Careful, you don't get twice the relief because you are renting out twice the number of rooms.
DAZ
dazren said:
Careful, you don't get twice the relief because you are renting out twice the number of rooms.
DAZ
No worries. Amount of money I'd be looking at is roughly half the allowance - hence my silly comment. Real chance of me extending the house over a vehicle purchase is rather slim to be honest
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