Renting Flat and Tax Help???

demon8991 · 18 Sep 2011 at 11:30

Hello i am migrating to Australia by the end of the year and have a friend and his girlfriend moving into my flat.

They will be paying £900 a month rent furnished.

How would the tax work with this considering im not going to be living in the country therefore not earning sterling?

Thanks in advance!

PapaLazaru · 18 Sep 2011 at 11:35

It is a friend. Don't tell anyone.

demon8991 · 18 Sep 2011 at 11:39

Yeah I see your point but surely £900 just appearing in my account every month will raise suspicion?

Deleted member 77746 · 18 Sep 2011 at 11:41

demon8991 said:
Yeah I see your point but surely £900 just appearing in my account every month will raise suspicion?

Certainly. Cash in hand.

Give a discount for paying cash and your fine.

demon8991 · 18 Sep 2011 at 11:45

Like i said i will be living in Australia!

Cash in hand would be rather difficult??!!

Mr Jones · 18 Sep 2011 at 11:46

Paypal Gift and wired into your account in Aussieland?

demon8991 · 18 Sep 2011 at 11:51

Mr Jones said:
Paypal Gift and wired into your account in Aussieland?

Now we are talking explain exactly how that would work?

Remember I need to use the money he pays me to pay for my mortgage and bills! Can i still withdraw it to my UK account without any problems?

Mercenary Keyboard Warrior · 18 Sep 2011 at 13:38

The mortgage to service the debt would be tax deductable, so only the non interest amount would be chargeable

Is this long term or short term. If its long term I would consider doing in properly, short term it may be worth taking the risk

Deleted member 77746 · 18 Sep 2011 at 13:42

demon8991 said:
Like i said i will be living in Australia!

Cash in hand would be rather difficult??!!

Get someone to be your keeper that you trust.

ng93 · 18 Sep 2011 at 13:44

mrbell1984 said:
Get someone to be your keeper that you trust.

I'll do it

demon8991 · 18 Sep 2011 at 13:54

robskinner said:
The mortgage to service the debt would be tax deductable, so only the non interest amount would be chargeable

Is this long term or short term. If its long term I would consider doing in properly, short term it may be worth taking the risk

The rent covers mortgage and bills

Ok my mortgage repayments £560 a month
Sky £75
British Gas & Elec £45
Water £20

So roughly £700 is what will be leaving my account a month to pay for the running of the flat.

If he is paying £900 a month how much realistically will I be taxed?