Rent a room scheme and GYH(T)

[gina-g-spot]

Ok so I am due to be posted on promotion which is 175 miles from my home . There's no way I can afford to buy in the new area so I will be keeping my house and travelling back the odd weekend and so will receive GYH(T). However, to keep the house ticking over I am getting a lodger which makes good financial sense. The "Rent a room scheme" allows a homeowner to receive £7,500 tax free and you just pay tax on anything above that. You can opt out and pay tax on the full amount minus mortgage interest, council tax and bills etc but this works out substantially more. I have read in the JSP allowances bible that you cannot claim GYH(T) if you are in the "Rent a room scheme". Is anyone else of the mindset of "what they don't know, cant hurt" or am I playing with fire?Will the RAF know I'm in the scheme automatically (i.e will my tax code change)?

Appreciate any insight to this DT_Xtremez_35:

 

[applecruncher]

I wouldn't be telling them. If you are travelling back, and your name is on the council tax bill..... Its no different, surely, to someone renting a room out to a lodger when they get HTD is it?

 

[gina-g-spot]

That is what I'm inclined to do, might make the 3 years mark time "pay-rise" easier to bare!

 

[busby1971]

I wouldn't be telling them. If you are travelling back, and your name is on the council tax bill..... Its no different, surely, to someone renting a room out to a lodger when they get HTD is it?

It is different because the rules of the allowance say it is, down to your own personal compass and acceptance of risk and consequence.

Just don't come on here bleating if you get found out, say if HMRC apply your tax free allowance to your rental and the JPA bods get curious, get a bit pished and let it slip out etc etc.

In the case of a deliberate act like this you could see some serious damage to your prospects within the mob.

Sent from my SM-T715 using Tapatalk

 

[gina-g-spot]

Moral compass might need recalibrating.

I guess I don't really understand why you can't get GYH if you are actually travelling, regardless of where I'm living or who I'm living with as long as I pay the council tax. I could have tax free ISAs but that wouldn't preclude me from receiving allowances. However, I don't like being in trouble so I'll probably tell the truth.

 

[Barch]

Is it any different to one of your offspring living at home and paying board?

 

[Shiny_Happy]

Are you sure it is saying you can't rent a spare room out? Maybe it is saying that you can't yourself 'rent a room' from somebody else and then claim travel back to that room??

Edit to say - that's not a hint. I have no idea and haven't read the JSP, just pondering.

 

[gina-g-spot]

Good thought but definitely for the home-owner. Seems a silly rule, I'd like to know the reason. Not like the RAF would be any more out of pocket.
Oh well, just thought I'd see if anyone else had experienced this.

 

[muttywhitedog]

I would have thought the non-entitlement to GYH(T) would be applicable if you continued to rent a room from a mate, rather than being the landlord who was renting a room out because his employer was forcing him to work 175 miles away.

But then again, its the RAF we are talking about, so common sense and caring for the employee goes out the window!

 

[222]

The rent a room scheme is automatic. You don't actually 'enrol' as such or tell anybody about it. If you rent a room to somebody and don't earn more than the allowance you are deemed to be taking advantage of the scheme. The onus is on you to inform hmrc or other interested parties if you charge/earn more than the allowance.

In that regard you are very unlikely (in the normal course of events) to be found out. However be aware of the fact that it will also change your entitlement any Council Tax discount you are currently getting and your home insurance could be invalid if you don't inform the underwriter and your mortgage provider may need to give you permission.

 

[gina-g-spot]

But then again, its the RAF we are talking about, so common sense and caring for the employee goes out the window![/QUOTE]

That's more like it DT_Xtremez_31: