davegtt

I am a home owner and live in my mortgaged property. I rent a bedroom out to a friend of mine and his girlfriend.

I dont have any "agreements" in place etc, its just a private agreement that he rents a room out from me. Now, his girlfriend is applying for a National Insurance Card (shes polish) and the offices need proof of a rental agreement from their "landlord". Not that I agree with that term but sure, I'll go along with it.

So what do I need to do? Theyre going to the offices on Friday so I need something sorted for them.

Cheers

Tidgy

crikey, very short notice matey.

can you just right a letter sayng yes she lives here?

cookstar

iTrader: (6)

Be careful your house doesn't end up deemed as a HMO.

stilover

If you declare an agreement for rent is in place, you'll be taxed.

I take it the current arrangement is cash-in-hand?

cookstar

iTrader: (6)

Could you maybe say the rent is £1 per week?

davegtt

Lets be serious here, its pretty obvious from when I said "private agreement" That yes, he just moved in and gives me some cash every week. Council know hes here etc so thats fine but nothing is declared regarding tax wise etc.

I was hoping I can just write a letter saying yes she lives here. That was my first initial thought, but it seems all rather basic, it'll be about 20 words long with a signiture on it.

Nobody ran into this before then?

stilover

Wow, never thought of that. Bet the TAX office have never heard that either.

Yeah Dave, just say you rent out at £1 a week. Sorted.

davegtt

Thanks for the help then

Dont suppose you have owt helpful for me do you?

dazdavies

iTrader: (22)

You can buy off the shelf agreements from Staples. You just fill in the blanks.

I think they are around the £20 mark.

fivetide

iTrader: (1)

Read up on it. I think yopu can take quite a bit before worrying about tax... your issue is the HMO license, being named as a landlord and also having to make sure you have all other stuff in place.

Even at £1 a week i think you'll need a gas safety certificate etc....

5t.

cookstar

iTrader: (6)

Jesus whats the attitude for?

davegtt

You need a HMO licence is you are letting to 3 or more tennants. I wont be classing myself as a tennant will I? If I do then including myself on the tennancy then I will need the HMO licence but otherwise Im clear of that.

So its just this agreement for to fill out then, from what I can see around there net, there are loads of basic tennancy agreements to download but I cant ind some that includes a Resident Landlords Agreement (basically the landlord lives with them). Thats what Im going to need but I cant find anything on google and Im pretty good at finding stuff there.

cookstar

iTrader: (6)

Have you tried speaking to a local lettings agent?

davegtt

Good idea Cookie. I could give them a bell later, although Im sure they'll want some form of payment

cookstar

iTrader: (6)

Well I'm sure your mates other half would be glad to cover any costs involved.

You may just be able to get some free advice, see what they are offering to sell you then just download it.

boxst

I would write a letter saying that she lives with you. There is no requirement to have a rental agreement to get a NI number.

(At least there wasn't)

Steve

fivetide

iTrader: (1)

I would think you are looking at £150 minimum. Would try your local authority on the HMO thing as i think you'll form two households which i think does mean a HMO license...

Have a look on things like MoneySavingExpert also maybe try landlord things like National Landlords Association or something. Perhaps they offer free advise?

Just a hit and hope mind.

5t.

davegtt

Well the good news is I can use the Rent a Room Scheme and recieve £4250 a year tax free. I currently get £4200

Just need to sort some agreement form out now.

fivetide

iTrader: (1)

Told you that there was no need to put £1 as the rent

5t.

Ray T

Don't forget even though its in effect tax free you still have to fill a box in on the tax return.

SwissTony

iTrader: (19)

Put that down for the tax man ..sorted
But on her agreement, say that the money can be taken in 'kind'

davegtt

According to the direct government site if my takings are less than the given amount and Im not claiming "expenses" then I have no requirements to fill a tax self assesment form out

Swissy, like your thinking but I have to behave