Bedroom Tax

We have had a discussion about this in the bureau today, and any thoughts would be welcome.

When UC comes it seems to be the case that any rent from lodgers i.e. to avoid for example the bedroom tax would be exempt. Some people seem to think this applies, to current benefits, from the date that the bedroom tax applies, which would be this April. I think this is wrong.

Thanks

I would agree with you - in April there is no change to the rules on the treatment of income from lodgers - and they are entitled to be taken into consideration for the size criteria

But when UC comes in, they are not taken into consideration when looking at the size of the property (ie a deduction would be made from housing costs for underoccupation) but income from them is completely disregarded.

JayKay - 19 March 2013 04:52 PM

I would agree with you - in April there is no change to the rules on the treatment of income from lodgers - and they are entitled to be taken into consideration for the size criteria

But when UC comes in, they are not taken into consideration when looking at the size of the property (ie a deduction would be made from housing costs for underoccupation) but income from them is completely disregarded.

Thats what I think too

Hi was just having a look through on Bedroom Tax and Appeal tactics when I saw this.
Board and Lodging income will be treated a self-employment and HMRC rules will be applied. See Setion 792 and thereabouts of the Income Tax (Trading & Other Income) Act 2005.

We need qa tax expert or 2 now.