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Rent a room scheme?


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I have rented out a large room in my house for the past couple of years, this room has it's own bathroom. I have also let this under the Rent-a-room scheme as this is the best option for me.

However I have since put in a sink, fridge and worktop in the room with a countertop oven. So this means my lodger no longer uses my kitchen. We share access through my front door, my lodgers room is not separated off/locked etc.. so we are still adjoined.

The council though have now decied to band this for its own council tax (though I am being told I should perhaps appeal this?), but my query now is really in terms of the rental income and whether I can still acount for this under the rent a room scheme. The rent, after bills is £350 per month.

It suits me to keep it as rent-a-room, but I'm not really sure whether this is the correct way.


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I think you are doing this wrong

1. Rent a room allows tax free income of £4250 pa GROSS.

Your £350 pcm after expenses is probably over the threshold so if it is it should be declared and TAXED.

2. The rent a room rules quite clearly show that you can’t use the scheme for homes converted into separate flats. If the council are charging separate council tax then its a separate dwelling and doesn't qualify for rent a room relief.

Your arrangement is also likely to affect

* any loans (mortgages) on the property and

* insurances ( buildings & contents).

* may be subject to building regulations.

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Thanks for your reply.

I do delcare the amount over the tax threshold.

Building regulations have assessed my property already and it is not subject to building regulations. It is not a separate dwelling, it has no separate access (other tan a garden door) and has not been 'converted' other than a sink in the room. It is building regulations and the council themselve who have suggested that I appeal the separate banding to the Council valuation office.

Insurers are already aware of the situation and I don't have a mortgage.

I think perhaps I need to see a solicitor/citizens advice.

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Once you install cooking / kitchen facilities into a property which also has en-suite bedroom facilities as well you will be classed as a separate dwelling for council tax purposes, normally at Band A.

Do I agree with this? No..... but Councils are searching everyway they can to raise revenue.

You need to remove the cooking / kitchen to go back to where you where on this matter and then come back to the rent-a-room rules.

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