Renting to a friend?

teddyteddy

hi guys so heres the senario.
so my friends mama has a spare room. and a lady i pal with needs a place in the area here. but shes a pensioner. she draws her pension etc .
is there
the girl who wishes to rent . the snag is is attatched to a social welfare allowance thing where they pay the landlord. etc etc .
so my question is . can the lady be a landlord if a pensioner . and will she be heavily taxed on it . ? or is there a limit when under it its not affecting her ?:Dxx

navandiver

As she will be renting a room in her house she should be able to claim "rent a room relief" Under this she can earn up to €10,000 before having to pay any tax on the rental including all bills. However if she earns more than ten thousand in the tax year she will have to pay tax on the entire amount of rent received

The_Morrigan

OP I'm completely confused by your post, could you try edit it to have it make more sense?

Who owns the house?
You mention social welfare and a landlord in your post - who is 'they' in that sentence?

the_syco

teddyteddy wrote: »

hi guys so heres the senario.
so my friends mama has a spare room. and a lady i pal with needs a place in the area here. but shes a pensioner. she draws her pension etc .
is there
the girl who wishes to rent . the snag is is attatched to a social welfare allowance thing where they pay the landlord. etc etc .
so my question is . can the lady be a landlord if a pensioner . and will she be heavily taxed on it . ? or is there a limit when under it its not affecting her ?:Dxx

Gonna reword this to make sense to others (or at least my take on the situation).

teddyteddy wrote: »

hi guys so here's the scenario.
My friends mother has a spare room, and my female friend needs somewhere to stay in the area that my friends mother lives.

My friends mother is a pensioner, who draws pension, etc.

The girl who wishes to rent gets rent allowance that she currently pays to her landlord.

My question is; can my friends mother be a landlord even though she's a pensioner, and will she be heavily taxed on it? Or is there a limit that if under, she doesn't get taxed?

teddyteddy; anyone can be a landlord, age doesn't matter. Your friends mother will be an owner occupier, meaning that your female friend won't have a whole load of tenant rights (if any at all).

The_Morrigan

Thanks Syco.

That is one scenario alright, the other possibility is that the person with the room to let is a tenant so it may be a sub letting situation which may not be allowed..the op really needs to come back to us and clarify that.

teddyteddy

op back ,lol my friends mom owns the house and shes on a state pension .. and the tennant is another friend of mine. i taught i made myself clear . but not to worry.

The_Morrigan

teddyteddy wrote: »

op back ,lol my friends mom owns the house and shes on a state pension .. and the tennant is another friend of mine. i taught i made myself clear . but not to worry.

Obviously it makes sense in your head, but not to us!

Right so the owner of the house is a pensioner - yes?
And, the person looking to rent the room in the pensioners house is currently in receipt of social welfare payments for rent?

teddyteddy

correct

The_Morrigan

teddyteddy wrote: »

correct

Well then the person in receipt of social welfare payments needs to ask the social if they permit the benefits to be used under the rent a room scheme.

The pensioner also needs to do a tax return on any income received from the lodger too ( rent and contributions for bills).

The_Conductor

It also depends on whether the pensioner is on the means tested or the contributory OAP- income from the rent-a-room scheme is considered as 'means' for a means tested pension- however all you have to do is a tax return, if its a contributory pension.