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Does a lodgers income count as my household income?

3 replies

GotMyGoat · 04/01/2013 21:45

Am considering getting a lodger under the rent a room scheme, we would not be charging more than £4250 pa so I know that the income from this will not effect our child tax credits.

However - does the lodgers own income (salary etc.) count as part of our household income for child benefit and student finance purposes?

I'm starting a uni course in september, and on our current salary I'm eligible for a grant but the lodger will be earning at least £16,000 a year so if it is counted this could mean I'm actually worse off from getting a lodger as I won't be able to get the grant.

Thanks!

OP posts:
Shakey1500 · 04/01/2013 21:50

No, only the rent the lodger pays you would count as "your" household income.

GotMyGoat · 04/01/2013 21:53

Great news, thank you for clearing this up.

OP posts:
CogitoErgoSometimes · 05/01/2013 10:38

It only counts as 'household income' if you're living together as a couple. Make sure therefore that you make the financial relationship fairly formal, signing an agreement & organising direct debits rather than working on a cash basis etc. You will also have to tell the council that you are a two-person household for Council Tax purposes even if you're not a couple.

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