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Ash
Ash, Solicitor
Category: Property Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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My partner and I are about to move in to (and start

Resolved Question:

Hello
My partner and I are about to move in to (and start renting, as tenants) a 2 bed maisonette.
To help pay the rent, we would like to rent out one of the bedrooms to another person.
Would this other person be considered a lodger, or a subtenant? And, therefore, what written agreement can we sign with this additional person to have some sort of contractual relationship? And, finally, will we have to declare the income from this additional person's rent for tax purposes?
Submitted: 2 years ago.
Category: Property Law
Expert:  Ash replied 2 years ago.
Alex Watts :

Hello my name is ***** ***** I will help you with this.

Alex Watts :

Does the Landlord allow you to sublet please?

Customer:

Yes

Alex Watts :

Ok. Then it is just a lodger agreement you need

Alex Watts :

They are not subletting just renting a room, so they are a lodger

Alex Watts :

You can earn up to £4,250 a year tax fre

Alex Watts :

* free *

Alex Watts :

Can I clarify anything for you about this today please?

Customer:

What's the difference between subletting and a lodger?

Alex Watts :

Subletting is generally the whole property.

Alex Watts :

Lodger is a room

Customer:

ok, thanks.

Alex Watts :

Can I clarify anything else for you?

Customer:

Will I need to register for the government scheme, in which I tell them I'm renting the room, or can I declare the earnings on my self-assessment?

Alex Watts :

No you don't need to register as long as the rent is below £4,250

Alex Watts :

That is tax free

Alex Watts :

Otherwise yes you declare it to HMRC

Alex Watts :

Does that help?

Customer:

Yes. Final question - the earnings will be £6000 per year. Do I declare this on my self assessment, or another scheme via Gov.uk?

Alex Watts :

You declare via self assessment

Customer:

Ok, that's clear, thank you.

Customer:

I'll be off now. Have a good evening.

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