Hi folks,
I have just taken in a Lodger to boost my income a bit! He's paying £250pcm...
But I have a few questions....
a) Do I need to tell the IR about it - and if so how?
b) Should I make it formal - eg, keep a rent book etc, or is cash in hand ok...
c) Depending on b) what rights does he have in terms of the property, should I ask him to leave?
Yes, I know I should have researched all this first - no wise cracks thank you!
Otherwise, thanks in advance for your advice.
Steve
You would appear to qualify for rent a room relief (max rent = 4250), and thus 250 per month is not taxable. You will still have to complete the Land & Property pages of the SA Return - actually it's just a matter of ticking the first box on page 1.
...but only if you already receive one. The IR specifically say that if you don't receive a tax return there is no need to inform them of rental income if it comes under the Rent a Room scheme.
You would have to show it on your tax return if one is already sent to you though.
Nick
I would draft up an excluded tenancy agreement and get them to sign that. Even it if has limited legal value, it is still useful to have things written down in case of misinterpretations or forgetfulness.
You have the right to evict your lodger with reasonable notice, with the need to go to court or anything like that. Do a Google search for UK excluded tenancy agreement to read up on the subject.
Regards, Zen
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