katelee17 Posted September 8, 2014 Report Share Posted September 8, 2014 Hi, 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. Thanks Link to comment Share on other sites More sharing options...
Richlist Posted September 8, 2014 Report Share Posted September 8, 2014 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. Link to comment Share on other sites More sharing options...
katelee17 Posted September 8, 2014 Author Report Share Posted September 8, 2014 Hi, 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. Link to comment Share on other sites More sharing options...
Richlist Posted September 8, 2014 Report Share Posted September 8, 2014 Edited. Link to comment Share on other sites More sharing options...
Melboy Posted September 8, 2014 Report Share Posted September 8, 2014 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. Link to comment Share on other sites More sharing options...
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