Universal Credit Review have I broken the law?

[lynG86]

Hi I rented a room out in 2019 in my council flat on Airbnb. I did not declare this and the payment is showing on my bank statement. I am worried sick I didn’t think anything of it. I am on PIP but I didn’t see it as wrong as it’s not working but I guess it’s income? Universal credit have asked for 5 years bank statements. Can anyone help I am worried sick I’ve sent the statement to them :(

Of course it's income 😳 what else would it be? They may spot it they may not

How long did you rent it out for? How much money did you make?

family member for 2 weeks who gave you some money towards bills? You can explain it. Stranger for 18 months who paid you thousands, you’ve got a bigger issue.

This.

But it is income and if it would have stopped you from being eligible then you would be sanctioned for this.

Oh dear.

what is the total amount you EARNED from renting out this room ?

If you are lucky you will be asked to repay the amount you now owe to UC and if you are lucky they will just take it from your monthly payments.

Of course it's income. Unfortunately they must have a feeling something isn't right to ask for 5 years worth.

The other issue I assume is whether you are allowed to sublet a room in a council-owned property. If you’re not, you might have an issue there too.

If permission wasn't sought and given, it's a breach of tenancy, so yes, that might also be a problem

This are you even allowed to do this?

Yes it is income. You will probably be asked to pay quite a bit of UC back. Be very honest. Don't try to hide anything.

I don't think income from a sublet is counted as income for uc. You do have to have permission in writing to do it and it would effect single occupancy CT.

UC would also need to be informed.

You'd also have to declare the income for tax and register as such if it's over 7500 a year under the rent a room scheme.

@DoreenonTill8

No it's not ' allowed ' it should have been declared as income at the time, then if that amount took the Op above the threshold/limit or whatever then UC would not have been paid out.

Of course one could wonder / worry that UC may take legal action re fraud...

and as someone else says, she sublet a room in her social housing - thus breaking her tenancy agreement...

If the Op gets a payment towards her rent, UC may be duty bound to inform her landlord of this information ?

as i said in my initial reply...Oh dear

Did you declare the other adult living in your home on your UC claim?

IIRC it's not so much that you have the income but that you have another adult with income living with you.

My adult son lives with me and I said so on my claim.

Subletting to strangers is completely different to having a family member living with you. It's a breach of tenancy.

I know someone who had savings above X amount had been claiming UC and had to pay it back. Always wandered how they knew. I think perhaps it used to be self notification of these things but now the authorities and find out via banks. I suppose they may question it perhaps based on the amount

A standard review is 4 months bank statement not 5 years and they are doing loads of these at the moment

so they must have seen something wrong before they asked for 5 years statements

it could be that AirNB are required to send income and details earnt to HMRC although that’s not supposed to happen till next year so I doubt if it that

person could have been on the electrol roll and your down as a single person it could be that as well

your allowed to rent out a room to a lodger on UC without it affecting your benefits only affects council tax entitlement

Anyway op
if you head over to Reddit look for the benefit / universal credit subs

you have actual benefit advisors on there who can give you the correct info

Hi everyone it was for 2 weeks only, for £280. :( I have put a message in my journal informing them it was a genuine mistake that I didn’t declare this as income :(

Really so I did nothing wrong in terms of letting them know? What about the extra money?

Oh pull the other one. Of course you must have realised it's income. I just don't buy anyone (many people) are daft enough to think that income can only be from employment.

I've no idea what the consequences are likely to be I'm afraid.

As it's such a small amount and not long term surely the consequences won't be too severe. (I'm just guessing - I know nothing at all about UC).

Sorry, but no. That’s only if you are taking part in the ‘rent a room scheme’, not renting out a room on air BnB.
Op honestly this isn’t the place for legal advice as proven by the replies, as it is you’ve told them now and it’s not that much money overall so I wouldn’t worry yourself sick over it

Thanks I’ve not slept at all since I realised what I did, it’s a small amount and a short stay but it’s still income I didn’t declare I guess but I’ve told
them now I don’t want to hide. If they sanction me or worse I will accept it :(

It’s weird that they want 5 years statement
If you read this you absolutely can have a lodger under UC but generally a lodger wouldn’t stay for 2 weeks or look for a room on Airbnb

if you were getting HB at the time then it’s different calculation and I think they only ignore the first 20 quid

it might be that they want to check you weren't running a business which if on airnb I’m guessing that’s what they assume as it’s short term rentals

it’s not a lot that you made so I wouldn’t be worried about it either

www.citizensadvice.org.uk/housing/lodging-and-subletting/lodging-subletting/landlords-of-lodgers/taking-in-a-lodger-what-you-need-to-think-about-first/#:~:text=Any%20rent%20you%20receive%20from,be%20getting%20less%20Universal%20Credit.

If you’re on Universal Credit, any money you get from sub-tenants and lodgers under the rent-a-room scheme will not be counted as income up to the tax-free allowance of £7,500.
https://www.moneyhelper.org.uk/en/homes/renting/rent-a-room-scheme-how-it-works-and-tax-rules#:~:text=If%20you%E2%80%99re%20on%20Universal%20Credit%2C%20any%20money%20you,your%20benefit%20claims%20on%20the%20Citizens%20Advice%20website

Out of interest why did they ask for 5 years statements
as a standard review is 4 months

was that what they asked for straight when they got in touch with you

did you tell them first that you had a lodger and that’s why they wanted to check because in theory they shouldn’t have known if you only had to give 4 months statements on a standard review