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Forum Home  →  Discussion  →  Housing costs  →  Thread

Housing costs for B&B owners

Smithbull
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Universal Support, Citizens Advice Northumberland

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Total Posts: 12

Joined: 9 January 2019

Hi there,

I’ve got a client who runs a B&B and has claimed UC. They live in the B&B themselves but don’t own the property. They pay rent of £6200 per quarter. Does anyone know whether they would be eligible for the housing element of UC? If they are I’m assuming they’d get the LHA rate, is that right?

Va1der
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Welfare Rights Officer with SWAMP Glasgow

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Joined: 7 May 2019

Assuming the £6200 is the business cost for the entire B&B it’s not (directly) relevant for the HC calculation.

I think you’d have to resolve the self-employed calculation for UC before looking at HC, otherwise I don’t see how this becomes anything other than a contrived tenancy.

Elliot Kent
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Shelter

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Joined: 14 July 2014

What is the actual position here?

Is your client the owner (or leaseholder) of the B&B, renting to himself at cost price?

Or is he simply an employed manager of the B&B who also happens to rent a room?

And does he hold any position in the company which runs the B&B (if so) - e.g. as a shareholder or director?

Smithbull
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Universal Support, Citizens Advice Northumberland

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Total Posts: 12

Joined: 9 January 2019

They rent the property on a non-commercial basis but have chosen to run a B&B from it. Their landlord is ok with this set up.