E
eroonie33
Guest
Please help!
I have been renting 2 of my 3 bedrooms in my private house, whilst keeping the 3rd room for myself. I have private contracts with each lodger, who each pay an all inclusive amount per month. I pay all the domestic bills/council tax,etc and they are all in my name. As I understand it, (under 'rent a room' rules), you can have about 6000euro/4500GBP income tax free.
I now work away, and am able to make more income from the property, whilst still keeping a room. Unfortunately, this will take me well in excess of the 'rent-a-room' max.
I do not want to pay any tax, using the total rental income to match the interest on the mortgage. However, this would still be my only residence, (I do not own any other/buy-to-let)
My objectives are to:
i. Receive the equivalent max income (to match the interest on the mortgage, plus reasonable wear+tear/general upkeep bills) without any incurring any tax liability.
ii. Allow the principal lodger/myself to be able to sublet a room to the other lodger(s).
iii. Allow me to keep a designated room for whenever I occassionally need it.
iv. Keep the mortgage/insurance company happy, (they have already stated that I would be able to have a tenancy for a 2year period whilst remaining on my current mortgage rate/deal).
v. Keep the process as simple as possible, but inline with the law.
Is the only way to do this via a specific tenancy agreement with the principal lodger?
Thanks.
I have been renting 2 of my 3 bedrooms in my private house, whilst keeping the 3rd room for myself. I have private contracts with each lodger, who each pay an all inclusive amount per month. I pay all the domestic bills/council tax,etc and they are all in my name. As I understand it, (under 'rent a room' rules), you can have about 6000euro/4500GBP income tax free.
I now work away, and am able to make more income from the property, whilst still keeping a room. Unfortunately, this will take me well in excess of the 'rent-a-room' max.
I do not want to pay any tax, using the total rental income to match the interest on the mortgage. However, this would still be my only residence, (I do not own any other/buy-to-let)
My objectives are to:
i. Receive the equivalent max income (to match the interest on the mortgage, plus reasonable wear+tear/general upkeep bills) without any incurring any tax liability.
ii. Allow the principal lodger/myself to be able to sublet a room to the other lodger(s).
iii. Allow me to keep a designated room for whenever I occassionally need it.
iv. Keep the mortgage/insurance company happy, (they have already stated that I would be able to have a tenancy for a 2year period whilst remaining on my current mortgage rate/deal).
v. Keep the process as simple as possible, but inline with the law.
Is the only way to do this via a specific tenancy agreement with the principal lodger?
Thanks.