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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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My daughter is a student. She lives in our house with 2 other

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My daughter is a student. She lives in our house with 2 other students using rent a room. Her income from the 2 rooms is over the £4250 allowance but her total income is less than the personal tax allowance. She has no other earnings. Does she need to inform the inland revenue.
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

As your daughter is in receipt of rental income of £2,500 or more after deducting allowable expenses, she will have to fill in a self assessment tax return.

If her total income from all sources remains below the personal allowance of £10,600 there will be no tax payable.

More information on check if you need to fill in a self assessment tax return can be found here. Your daughter would have to register for self assessment. Information on how to register can also be found here

https://www.gov.uk/check-if-you-need-a-tax-return/y

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 2 years ago.
Thank you for your reply. As she has friends in her 2 rooms for tax purposes as a Rent a Room she is not allowed to claim expenses as it is not a tenancy agreement. She can have £4250 tax free but the remainder brings her lower than her personal allowance which is £ 10000 for the tax year 20-4 - 2015 so as there will be no tax to pay does she need to inform the inland revenue.
Expert:  taxadvisor.uk replied 2 years ago.
Thank you for your reply.

She would still have to complete the tax return and show the income from property by completing supplementary pages SA105 - UK property, not withstanding the fact there may be no tax payable as total income is below personal allowances.

This way, she can't be held to account for non disclosure of income.

I hope this is helpful.
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