If someone moves in and starts giving you money towards the bills

[yorkiefiona]

Hi

I wonder if anyone has been in the same situation so can offer some help towards this.

My husband and I are having a family member move in with us when we move house. At present my husband pays the mortgage but when this person moves in, they will be contributing towards the bills and mortgage although their name won't be on the mortgage. They'll be giving my husband half of the mortgage each month and half of the bills so we can all live cheaper but together.

My query is, if anyone knows, is my partner liable for any tax if he lets the mortgage company know that the family member will be giving him 50% of the mortgage (as rent) each month? I can't help but think that if this person is living with us and is paying half the mortgage, the tax man might see it as income for my husband even though it will only go towards bills and the mortgage.

 

[Jon]

To me it’s the same as any rental income in that well, it’s classes as an income

 

[The Reverend]

Your family member isn't paying towards the mortgage, he is paying you/your husband and you are spending the money on the mortgage.

Use the 'rent a room' scheme to receive the money and up to £8250 a year can be received tax free.

If you are getting more than £8250 including the bills, work out what their contribution towards the bills are and take that off. Hopefully it takes you under £8250 and then you'll have no tax to pay.

HTH

The Reverend

p.s. If you have a lodger (family or otherwise) then make sure you let your mortgage company know. I also recommend you make sure you get the 'correct' insurance cover.

 

[mikecmr]

yeah I was going to say just put it through as a lodger as the rev has said not taxable up to a certain amount, I have lodgers I use Aviva for insurance it increased by 2 quid a month after I told them, mortgage company just wanted a signature on a draft piece of paper all very easy to do

 

[yorkiefiona]

Thanks for your help everyone

 

[mum2one]

You need to make sure that they are only. Lodger, they are paying rent. Which goes into the household pot...

Check your house insurancr

Have a set of ground rules

 

[Sirhct]

Yes, worth remembering to check insurance.