Contributions by adult children and tax.

[inloveandmarried]

If an adult child is living at home and pays an amount each week to cover their fuel, food, and contribute towards gas and electric, broadband and council tax. Is this amount received considered extra earnings for the parent who receives it and therefore taxed?

I'm trying to work this out but can't find anything.

My assumption would be a contribution towards living costs at home would not be an extra income for the parent as it's a contribution towards the costs of them living at home.

They don't rent a room, they live in the family home as they have always done.

Should this then be declared on the self assessment forms? If so how, without filling in the section on letting a room which this isn't.

We don't claim any benefits so this isn't a factor.

What do people think?

[jollyhollyday]

IMO not income as surely if it was, the expenses you pay out with that money would be offset against it

It's same as if your son just went and bought shopping instead of giving it to you to buy shopping

It's not earned income

[OhComeOnFFS]

No, it's not classed as income. They're just paying their share towards bills.

[sevenbyseven]

They're not tenants or lodgers, they're just paying their share.

[Ohmylovejune]

No it's not taxable.

In fact, even if they weren't related, if its in your home (and not an annexe with a separate door and separate facilities) then £7500 a year is tax free under the Rent a Room scheme from a lodger for room accommodation and bills.

[Ohmylovejune]

As for self assessment as its your child no it doesn't need to be declared but I would often put information like this in the white space of a tax return so if there was ever an enquiry it was clear that the money coming in was considered and dealt with appropriately.

[EyelessArseFace]

They are a family member living in the family home and contributing to the household bills. That's all there is to it.

No, you don't put it on the self-assessment form. It isn't earnings.

[blacksax]

@Ohmylovejune

As for self assessment as its your child no it doesn't need to be declared but I would often put information like this in the white space of a tax return so if there was ever an enquiry it was clear that the money coming in was considered and dealt with appropriately.

Er, no - you don't ever tell the Inland Revenue something they don't need to know and haven't asked for!!

By all means, keep a personal record so it would be available should proof of your financial circumstances ever be asked for, but don't go and announce it to them.

[inloveandmarried]

Thank you everyone. That was my gut feeling too.