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hchalk
09-03-2007, 11:05 AM
Help please!!

I am letting a friend of mine stay at my flat. She is covering my mortgage and any utility bills she incurs, I am not making any profit out of this.

Are there any obligations I have to fulfill or any tax implications for myself despite not making a profit?

I would be grateful for any advice.

H xx

jeffrey
09-03-2007, 11:16 AM
Help please!!

I am letting a friend of mine stay at my flat. She is covering my mortgage and any utility bills she incurs, I am not making any profit out of this.

Are there any obligations I have to fulfill or any tax implications for myself despite not making a profit?

I would be grateful for any advice.

H xx

Assuning that you are the leaseholder, you may be in breach of mortgage conditions. Best to ask mortgagee (lender) for consent, to be on safe side.

Poppy
09-03-2007, 11:25 AM
You will need to complete a Self-Assessment Tax Return regardless of money earned. Contact the HM Revenue and Customs.

To add to jeffrey's answer, find out if you require your freeholder's permission too.

Joannepowell
09-03-2007, 12:37 PM
& what about things like gas safety inspection/certificate guys?

J

mountie
09-03-2007, 12:45 PM
Is this your residence as well or does she live there on her own? If she is on her own then you should treat it as a Landlord/Tenant relationship and qualify everything.

PaulF
11-03-2007, 23:29 PM
What you posters might not realise that an act of generosity when somebody has experienced hardship (not necessarily in the financial sense) does not necessarily create any tenancy at all. What's more if no rent is being paid it definitely doesn't.

Ericthelobster
12-03-2007, 08:11 AM
What you posters might not realise that an act of generosity when somebody has experienced hardship (not necessarily in the financial sense) does not necessarily create any tenancy at all. What's more if no rent is being paid it definitely doesn't.But she's "covering the mortgage"! I'm sure there are plenty of LLs around who consider themselves to be doing OK if their rents received during normal commercial tenancies are adequate to do that. And particularly if the mortgage is a repayment one, why on earth wouldn't the Inland Revenue take an interest? Income doesn't count because I'm helping out a friend?