Paying tax on money from home stay students?

[irememberthesilverjubilee]

Does anybody know if you have to declare tax on 'earnings' through this all I can find is in Australia it is counted as expenses and if there is a surplus then it would be too small to be taxed.

Loops for the too long sentence!

What is it? Are you renting a room to a student or something?

Yes a room (2 meals) to a foreign student.
In Oz it's counted as expenses rather than an income.

It would be the same here as if you had a lodger. I think there's a higher tax allowance if the room is furnished, but you should still declare it as income. Hope this helps.

www.guardian.co.uk/money/2009/aug/09/renting-rooms-foreign-students

I think you are supposed to declare anything over about £80 a week, no idea if people actually do though.

How much do you get in rent a year? Is it less than £4,250? If so look at rent a room relief:

www.hmrc.gov.uk/individuals/tmarent-a-room-scheme.shtml

Thanks for all the info so far!
Will have to get the calculator out!

You won't pay tax on the first £4,250, regardless of how much tax you pay from other income, if you use the rent a room relief. But you cannot offset expenses, such as wear and tear allowance, repairs ect.

If you want to offset expenses instead then you will just pay tax on the profit.