Question of Tax - Vistors from Abroad

[newton]

Hi

Can someone tell me how my tax position is affected by the following situation?

We often get family and family-friends visiting from abroad, who stay with us for 3-4 weeks or even 2 -3 months. On most occasions on leaving, or during their stay they insist on paying contribution towards food and expenses, acknowledging that they have saved a considerable amount in hotels or otehr accommodation costs, and that they would be offended if we didn’t let them recompense us for the trouble.

Sometimes, I have to put the cash received in my bank to cover my overdraft or mortgage payments.

Would such gratuitous payments be taxable? Or be treated as lodger in house? Do I need to declare them separately?

Will be grateful for your views and or experience of similar nature.

Cheers
Newton

[TaxationPete]

There really is no difference than them taking you out twice a week for a really good meal, exempt you don't put that in the bank. If the amount is sensible compared to what you have spent as extra overheads than I do not see a problem. Regards Peter

[newton]

Thank you, that is what I wanted to hear.

However in the latter part you mention "sensible".

On his last vist my (older) cousin stayed for 4 weeks, and forcefully handed me over £400, saying that if he had stayed in a hotel it would have cost him £60 per day. Will this be considered sensible?

Normally I bank all cash and cheques as a matter of course. I had a large O/D on my account (and he was aware of it) and the mortgage needed to be paid, so I had to bank the money.

Do you think this could make a differnence to tax position? If not, does putting in the bank make it more liable to TAX if the intention is not to hide it anyway?

Your views are much appreciated.
Cheers
Newton

[TaxationPete]

If you were investigated by HMRC then payments into a bank are much more traceable then cash in hand and you use it to pay bills directly in cash, fuel the car etc etc. The choice is yours. Regards Peter

[sober]

Hi Peter,

Should it not be then declared under rent-a-room ?
Will it not make the cash ligitimate for what it is actually for - since the intention of the poster is not to hide it?

Or does the rent-a-room not apply to foreign visitors?
Regards
Sober