renting a room out?

helpimcrap · 6 Oct 2011 at 20:40

I'm considering doing this however i am VERY unclear on the details.

lookibg on here:

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804

the govt do a rent a room scheme...

up to £4250 a year - fine, would be less than that...

but looking at this scheme exactly why would i join it!? there don't appear to be an benefits in letting anyone know bar for council tax (ie more than one person at address) as i can't claim any wear/tear things.

is it a legal requirement if i don't go above the £4250 threshold anyway? :confused:

Jez · 6 Oct 2011 at 20:52

You dont "join it", read the page :confused:

edscdk · 6 Oct 2011 at 20:54

Get paid in cash, if they dont pay beat them up and throw their stuff in the street.

hurfdurf · 6 Oct 2011 at 20:57

Or rent to your best friend

helpimcrap · 6 Oct 2011 at 21:08

hurfdurf said:
Or rent to your best friend

avoiding friends or family for issues with money lol

helpimcrap · 6 Oct 2011 at 21:09

Jez said:
You dont "join it", read the page

it says you can choose to 'opt out'. surely that means you have to join it to opt out? otherwise you couldn't opt out - you just don't join in the first place?

Pudney · 6 Oct 2011 at 21:17

No, read all of it.

Do you submit a tax return each year?

csmager · 6 Oct 2011 at 21:19

It says at the bottom of the page.

There's no real "joining" involved - it basically just a claim when you complete your tax return. If you don't want to claim it, you just fill in your rental income and expenses.

helpimcrap · 6 Oct 2011 at 21:22

Pudney said:
No, read all of it.

Do you submit a tax return each year?

nope - never.

by the sound of it if i get less than £4250 i don't do anything. just wondering if there was a legal issue with it?

csmager · 6 Oct 2011 at 21:23

helpimcrap said:
by the sound of it if i get less than £4250 i don't do anything. just wondering if there was a legal issue with it?

Only if you get more than £4,250. That's then tax evasion if you don't declare it.

Pudney · 6 Oct 2011 at 21:25

helpimcrap said:
nope - never.

by the sound of it if i get less than £4250 i don't do anything. just wondering if there was a legal issue with it?

Nope, no issues if you get less. You just have to do sweet F A.

Jono · 6 Oct 2011 at 22:11

Make sure you don't include all utility bills - or do, but make sure that a portion of the rent is to cover that... that way it won't go towards the 4250