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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To want to rent out spare room without losing child tax credits

14 replies

gardenmonument · 27/08/2015 22:21

Been lumbered with a big mortgage. I have a spare room and would like to rent it out for an amount lower than government rent a room allowance.

OP posts:
UrethraFranklin1 · 27/08/2015 22:22

Do that then.
Whats the aibu?

OddSocksHighHeels · 27/08/2015 22:23

Why would you lose CTC?

Original poster
gardenmonument · 27/08/2015 22:29

I can't find anything to say I would still get child tax credits if I rent out my spare room even though I was told over the phone that it was ok. Don't want to take the risk unless can get in writing....

OP posts:
OddSocksHighHeels · 27/08/2015 22:45

I don't understand why you think it would stop your tax credits though?

I can't see HMRC sending out anything in writing to you though tbh.

Original poster
gardenmonument · 27/08/2015 22:50

They may see the money from renting the room as income...

OP posts:
Lurkedforever1 · 27/08/2015 22:55

Best guess is that the profit you make would be counted as income, so it would depend on how much margin there is between current income and the amount you start losing tax credits at.

Original poster
gardenmonument · 27/08/2015 23:05

Under the rent a room scheme if you keep under a certain limit the income is seen as tax free so should not cause problems with child tax credits but cannot find a document to prove it

OP posts:
lougle · 27/08/2015 23:06

www.which.co.uk/money/tax/guides/tax-credits/tax-credits-income/ Rent a room scheme income is untaxed up to £4250 so not counted for tax credits.

missymayhemsmum · 27/08/2015 23:16

Yup, I can confirm that, having a lodger doesn't affect my tax credits. Checked before doing it

missymayhemsmum · 27/08/2015 23:32

It affects the council tax (no single person discount) and my home insurance though, and the gas and electricity bills. And the broadband usage. And I had to write to the building society. And the neighbour is grumpy about the extra car. Apart from that, all good.

Original poster
gardenmonument · 27/08/2015 23:32

Thanks so much that is such a huge help

OP posts:
OddSocksHighHeels · 27/08/2015 23:52

Oh sorry I see what you mean now. I wasn't making any connection at all as I was reading.

ClearBlueWater · 27/08/2015 23:59

Ah. This is helpful to me too. thanks.x

Original poster
gardenmonument · 28/08/2015 08:24

Did you have to ask your mortgage company for permission? I have a joint mortgage still. What happened with the insurance? It is a family friend.

OP posts:
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